Question last year your construction company had operating, Ask an Expert

Accounting

Question: Last year your construction company had operating revenues of $1,240,000, operating costs of $520,000 and a CCA of $98,000 based upon existing assets. The beginning of that same year the company bought essential new equipment for $130,000. This equipment has a CCA rate of 30%. The company has borrowed money and is paying $18,000 per year in interest. Interest paid on borrowed money is tax deductible, so it reduces the taxable income. You also managed somehow to deduct the first-class flight tickets for all the vice-presidents and their spouses on a business trip to Cancun, Mexico, which cost a total of $50,000. The tax rate is 37.62%. What is the after-tax cash flow?

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92573945

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - larry recently invested 23000 tax basis in

Question - Larry recently invested $23,000 (tax basis) in purchasing a limited partnership interest. His at-risk amount is also $23,000. In addition, Larry's share of the limited partnership loss for the year is $2,150, ...

Question - what are the steps to find the expected stock

Question - What are the steps to find the expected stock value in 5 years if it is expected to pay $4.5 per share next year, required return is 12.2 percent and the growth rate is 3.4 percent?

Question management research project requirementstopic -

Question: Management Research Project Requirements TOPIC - Each student will submit a research project that selects a current management problem and applies one or more principles of management discussed in the class to ...

Question - speedy delivery company purchases a delivery van

Question - Speedy Delivery Company purchases a delivery van for $43,200. Speedy estimates that at the end of its four-year service life, the van will be worth $6,800. During the four-year period, the company expects to d ...

Problem - thakin industries inc manufactures dorm furniture

Problem - Thakin Industries Inc. manufactures dorm furniture in separate processes. In each process, materials are entered at the beginning, and conversion costs are incurred uniformly. Production and cost data for the f ...

Question - net income 376557 preferred dividends paid 32735

Question - Net Income $376557: Preferred dividends paid 32735: Common dividends paid 80802: Unrealized holding loss, net of tax 5093: Retained Earnings, beginning balance 286878: Common Stock 176906: Accumulated Other Co ...

Question - crane company had 590000 shares of common stock

Question - Crane Company had 590000 shares of common stock outstanding on January 1, issued 890000 shares on July 1, and had income applicable to common stock of $2930000 for the year ending December 31, 2018. Earnings p ...

Question - computation of future values and present values

Question - Computation of Future Values and Present Values - Using the appropriate interest table, answer each of the following questions. (Each case is independent of the others.) (a) What is the future value of $7,000 ...

Question - pina corporation bought a new machine and agreed

Question - Pina Corporation bought a new machine and agreed to pay for it in equal annual installments of $5,280 at the end of each of the next 10 years. Assuming that a prevailing interest rate of 6% applies to this con ...

Question - background info company a parent purchased 100

Question - Background info: Company A (parent) purchased 100% of the shares in Company B (subsidiary). Company B sold inventory on the 1/3/17 to Company A for $98,000. This inventory had cost Company B $69,000. by 30/6/1 ...

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

Recent Questions

Ask Accounting Basics Expert