Net income will decrease or increase?? Apex Corporation sold machinery for $57,000. Themachinery had an original cost of $135,000 andaccumulated depreciation of $62,000. Ignoring thetax effect, as a result of the sale: a. net incomewill increase by $57,000. b. net income willdecrease by $16,000. c. net income will increaseby $16,000. d. net income will decrease by $57,000.

Explanation of Gain or Loss on Sale of Asset:Gain or loss on the sale of an asset is determined by…

Answered: Apex Corporation sold machinery for…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section: Chapter Questions

Problem 2P

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Fill in the missing numbers for the following income statement. (Do not round intermediate calculations.) Sales $ 663,800 Costs 425,700 Depreciation 101,300 ЕBIT Тахes (21%) Net income b. Calculate the OCF. (Do not round intermediate calculations.) c. What is the depreciation tax shield? (Do not round intermediate calculations.) b. OCF с. Depreciation tax shield
Precision System had sales of $820,000, cost of goods of $510,000, selling and administrative expense of $60,000, and operating profit of $103,000. What was the value of depreciation expense? Set up this problem as a partial income statement and determine depreciation expense as the “plug” figure required to obtain the operating profit.
Classy Clocks Ltd. had sales of $1, 840,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $1,180,000, $185,000 and $365,000 respectively. In addition, the company had an interest expense of $280,000 and a tax rate of 35 percent. Its OCF is: a.$475,000 b.No option is correct c.$415,500 d.$150,000
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Fill in the missing numbers for the following income statement. (Do not round intermediate calculations.) Sales 2$ 659,000 Costs 420,100 Depreciation 98,900 EBIT Taxes (23%) Net income b. Calculate the OCF. (Do not round intermediate calculations.) What is the depreciation tax shield? (Do not round intermediate calculations.) C. b. OCF с. Depreciation tax shield
Tipton Manufacturing has a machine that cost $145,000 when new and has accumulated depreciation of $136,000, which it sold for $1,000. The amount of gain or loss from this sale is: O A. a gain of $8,000 B. a loss of $8,000 O C. a gain of $9,000 D. a loss of $9,000
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Question for Maroon Company: • HOW MUCH IS THE GAIN OR LOSS IF THE BLDG IS SOLD FOR P8MILLION ONE YEAR AFTER REVALUATION? • HOW MUCH IS THE BLANCE OF REVALUATION SURPLUS AFTER THE SALE? For Noypi Store, follow the requirement. (Choose from the choices and kindly provide a solution.)
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