Ask Question, Ask an Expert


Ask Financial Accounting Expert

problem1. You are trying to pick the least-expensive car for your new delivery service. You have two choices: the Scion xA, which will cost $15,000 to buy and which will have OCF of -$2,200 annually throughout the vehicle's anticipated life of 3 years as a delivery vehicle; and the Toyota Prius, which will cost $28,000 to buy and which will have OCF of -$650 annually throughout that vehicles anticipated four-year life. Both cars will be worthless at the end of their life. When you intend to replace whichever type of car you choose with the same thing when its life runs out, again and again out in the foreseeable future, and if your business has a cost of capital of 13 percent, what is EAC of the least expensive car?

problem2. Compute the tax disadvantage to organizing a U.S. business today as a corporation, as compared to a partnership, under the following conditions: suppose that all earnings will be paid out as cash dividends. Operating income will be $500,000 per year under either an organizational form. The tax rate on corporate profits is 35%, the average personal tax rate for partners is also 35%, and the capital gains tax rate on dividend income is 15%.

problem3. Now recomputed the tax disadvantage using the same income however with the maximum tax rates that existed before 2003 (35% on corporate profits and 38.6% on personal investment income)

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M93879

Have any Question? 

Related Questions in Financial Accounting

1 business b a calendar year c corporation has incurred

1. Business B, a calendar year C corporation, has incurred losses for each of the last five years. Before considering depreciation, Business B has an operating loss for this year. Which depreciation technique will maximi ...

Describe and provide an example of an opportunity cost what

Describe and provide an example of an opportunity cost. What are examples of opportunity costs that would be associated with production facilities if the manager had to make a decision on outsourcing?

This discussion will assess your understanding of

This Discussion will assess your understanding of organizational risks and ways to mitigate those risks. Briefly discuss at least three risk factors that may be prevalent in a manufacturing entity’s inventory management, ...

The gourmand cooking school runs short cooking courses at

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers that it uses in its budgeting and performance reports—the number of courses and the total number of s ...

1 roosevelt corporation has a weighted-average unit

1) Roosevelt Corporation has a weighted-average unit contribution margin of $40 for its two products, Standard and Supreme. Expected sales for Roosevelt are 40,000 Standard and 60,000 Supreme. Fixed expenses are $1,800,0 ...

Donna jamison a recent unc graduate with four years of

Donna Jamison, a recent UNC graduate with four years of for-profit health management experience, was recently brought in as assistant to the chairman of the board of Computron Diagnostics, a manufacturer of clinical diag ...

Use the infomration provided below to the determine1 a

Use the infomration provided below to the determine; 1. A balance sheet 2. An income statement 3. A cashflow statement either direct or indirect >The chiness goverment would waive all taxes for the first 5 years and dona ...

The fabricating department started the current month with a

The Fabricating Department started the current month with a beginning Work in Process inventory of $10,500. During the month, it was assigned the following costs: direct materials, $76,500; direct labor, $24,500; and fac ...

Michael and mary mason sold for 380000 in november of 2012

Michael and Mary Mason sold for $380,000 in November of 2012 their residence that they had purchased in 2002 for $75,000. They made major capital improvements during their 10-year ownership totaling $25,000. (a) What is ...

Thomas gilbert and susan bradley formed a professional

Thomas Gilbert and Susan Bradley formed a professional corporation called “Financial Ser-vices Inc.—A Professional Corporation,” each taking 50 percent of the authorized common stock. Gilbert is a CPA and a member of the ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate