Fill in the missing numbers for the following income statement. (Do not roundintermediate calculations.)SalesCostsDepreciationEBITTaxes (23%)Net income$659,000420,10098,900a. Calculate the OCF. (Do not round intermediate calculations.)b. What is the depreciation tax shield? (Do not round intermediate calculations.)a. OCF$206,580b. Depreciation tax shield

To calculate the Operating Cash Flow (OCF), we use the formula:OCF = EBIT(1 - Tax rate) +…

Answered: Fill in the missing numbers for the…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Compute the following. 1. Total gain. 2. Contract price. 3. Payments received in the year of sale. 4. Recognized gain in the year of sale and the character of such gain. а. (Hint: Think carefully about the manner in which the property taxes are han- dled before you begin your computations.) b. Same as parts (a)(2) and (3), except that Kay's basis in the property was $35,000.
Black River Adventures has net income of $3,518, interest expense of $1,715, sales of $24, 450, and costs of $10, 180. What is the amount of the depreciation expense if the firm's tax rate is 35 percent? Multiple Choice $7, 142.69 $2,503.57 $9, 037.00 $8,857.69
Give typing answer with explanation and conclusion
3) ( Below table shows the calculations for an after-tax analysis of a machine purchase alternative. EOY ВТСР Depreciation Deduction Тахable Income АТCF Income Таxes - 20,000 16,000 16,000 16,000 16,000 16,000 18,000 3,000 3,000 3,000 3,000 3,000 3,000 13,000 13,000 13,000 13,000 13,000 15,000 - 6,500 - 6,500 - 6,500 - 6,500 - 6,500 - 7,500 - 20,000 9,500 9,500 9,500 9,500 9,500 1 3 4 6. 10,500 a) Find answers to the below questions What are the cost basis (price) and "annual revenues less expenses"? What is the terminal market value (or salvage value)? What is the income tax rate? i. ii. iii. iv. What is the method used for depreciation deduction? What is the book value at the end of useful life? V. b) Calculate the equivalent present worth (PW) and the equivalent annual worth (AW) at an after-tax MARR of 11%.
A company acquired a new machine and immediately deducted the entire cost on its current income tax return because of favorable tax depreciation rules. The company uses straight-line depreciation for financial statement purposes. Which outcome will result from this decision? O A decrease in taxes payable in future years as a result of temporary differences O An increase in taxes payable in future years as a result of temporary differences A decrease in taxes saved in future years as a result of permanent differences O An increase in taxes saved in future years as a result of permanent differences
Please show all work
Which of the following temporary differences will most likely result in a deferred tax liability O Depreciating a new asset using units of production for GAAP and straight line for tax O Collecting rental income in advance O Sales with multiple obligations delivered and paid for over multiple periods O Paying utility bills in advance A
Pertinent information for two alternatives A and B is shown below. If i=10 % / year and the effective income tax rate is 35%, answer the following true/false questions. Alt. A Alt.B 150,000 225,000 100,000 100,000 30,000 10,000 15,000 22,500 ADS-6: Years Recovery Period GDS: 5-Years Recovery Period Basis, $ Gross Income (Gl), $ Operating Expense (OE), $ Salvage Value, $ MARCS Depreciation Method The CFAT at the end of year 7 for Alt. A is less than $50,000. True O False
Fill in the missing numbers for the following income statement. (Do not round intermediate calculations.) Sales Costs Depreciation EBIT Taxes (24%) Net income b. b. Calculate the OCF. (Do not round intermediate calculations.) c. What is the depreciation tax shield? (Do not round intermediate calculations.) C. $ OCF 662,600 424,300 100,700 Depreciation tax shield
FINAL EXAM. Fa 2023 0 4 in ach of the following cases, calculate the accounting break-even and the cash break- even ports Ignore any tax effects in calculating the cash break even (Do not round intermediate calculations and round your answers to 2 decimal places g. 32.16) CHE 22 Case 7 Unt Price $2000 44 Unt Variable Cell $1640 39 3 Accounting break even Foed Costs $7,200,000 $2.000.000 Depreciation 275.000 5.800 182.000 1100 Cash break even
10.Landscaping costs can be deducted in the determination of net business income, even if they involve items that would normally be considered capital assets True or False? 11. For the hobby farmer, deductible farming losses for a year are restricted to $2,500, plus one-half of the next $30,000. True or False?

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