Question number 39 Determine the taxable income for the year.DC -- Iа.b. Determine the income tax for the year assuming a marginal tax rate of 40 percent.с.Determine the after-tax cash flow for the year.39.Chevron Phillips (CP) has put into place new laboratory equipment for the production of chemicals; the cost is$1,800,000 installed. CP borrows 45 percent of all capital needed, and the borrowing rate is 12.5 percent. In the firstyear, 25 percent of the principal borrowed will be paid back. The throughput rate for in-process test samples hasincreased the capacity of the lab, saving a net of $X per year. In this first year, depreciation is $360,000 and taxableincome is $328,000.WILEY OREPLACEMENT ANALYSISWhat is the gross income or annual savings $X?b. Determine the income tax for the first year assuming a marginal tax rate of 40 percent.а.с.What is the after-tax cash flow for the first year?A Boeing contractor responsible for producing a portion of the landing gear for huge airliners experienced a storm-related power glitch during the multi-axis milling, to tolerances less than 0.001 inch, of a large and complex part.The value already in the part, plus the equipment damage, was $300,000. Risk analysis indicates that a similar eventmight occur once per year on average if nothing is done. PolyPhaser, a leader in lightning and surge protection, wascommissioned to do a turnkey installation to protect this critical portion of the process. The first cost is $480,000installed. A total of $275,000 is borrowed at a rate of 12 percent per year, and no principal is repaid in the first year.Deductible annual costs are $Y, and depreciation is MACRS-GDS in the 7-year property class, or 14.29 percent, inthe first year. The taxable income is $15,000.40.What is the value of the deductions, or $Y, in the first year?а.b. What is the income tax paid in the first year, assuming a marginal tax rate of 40 percent?What is the after-tax cash flow for the first year?с.

The following formulas are used to calculate the required details:- (a) Total Income = Annua Income…

Chevron Phillips (CP) has put into place new laboratory equipment for the production of chemicals; the cost is $1,800,000 installed. CP borrows 45 percent of all capital needed, and the borrowing rate is 12.5 percent. In the first year, 25 percent of the principal borrowed will be paid back. The throughput rate for in-process test samples has increased the capacity of the lab, saving a net of $X per year. In this first year, depreciation is $360,000 and taxable income is $328,000. What is the gross income or annual savings $X? b. Determine the income tax for the first year assuming a marginal tax rate of 40 percent. c. What is the after-tax cash flow for the first year? a.

Chevron Phillips (CP) has put into place new laboratory equipment for the production of chemicals; the cost is $1,800,000 installed. CP borrows 45 percent of all capital needed, and the borrowing rate is 12.5 percent. In the first year, 25 percent of the principal borrowed will be paid back. The throughput rate for in-process test samples has increased the capacity of the lab, saving a net of $X per year. In this first year, depreciation is $360,000 and taxable income is $328,000. What is the gross income or annual savings $X? b. Determine the income tax for the first year assuming a marginal tax rate of 40 percent. c. What is the after-tax cash flow for the first year? a.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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