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 Basis, $ Gross Income (GI), $ Operating Expense (OE), $ Salvage Value, $ MARCS Recovery, Years True 150,000 100,000 30,000 15,000 5 The TI (taxable income) of Alt. B at the end of year 1 is $40,000. False Alt.B 225,,000 100,000 10,000 22,500 5
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- 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 Basis, $ Gross Income (GI), $ Operating Expense (OE), $ Salvage Value, $ MARCS Depreciation Method O True 150,000 100,000 30,000 O False 225,,000 100,000 10,000 The depreciation charge at the end of year 7 for Alt. A is zero. 15,000 22,500 ADS-6: Years Recovery GDS: 5-Years Recovery Period Perioda. Fill in the following table assuming MACRS depreciation rates (10 points) Year 0 1 2 3 4 5 6 Pretax income MACRS Taxable Depreciation income Tax owed After tax income Inflation adjustment factor Real after tax income b. If MARR = 18%, should you purchase this system based on your real after-tax income? Why or why not? (5 points)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
- If net income before tax is 60000 OMR, tax is 2000 OMR, interest is 1500 OMR, depreciation is 1500 OMR and amortization is 1000 OMR, the EBITDA is: Select one: O a. 64000 OMR O b. Correct answer is not available O c. 62000 OMR O d. 66000 OMRIf the tax 2000 OMR, depreciation is 3000 OMR, amortization 1000 OMR, EBITDA to interest coverage is 15 times, interest is 5000 OMR. The Net income after tax is ... Answer:H1. Account I would need to calculate with the following information provided. This is all that was provided to me. COGS: 68% - SGA: 13% - R&D: 2% - Depreciation, Interest expenses are fixed as stated. Tax rate is 19% ***Please do provide a step by step calculations and explanation***
- The 2020 financial statements for Leggett & Platt, Inc. report the following information: Year ended December 31, 2020 (In millions) Depreciation expense $84.6 Net income 275.6 Equipment 620.3 Building 1071.7 Land 37.7 Accumulated depreciation and 1.165.4 amortization 564.3 PPE, netIf EBITDA is 60000 OMR, depreciation is 2000 OMR, amortization is 1000 OMR, interest is 1500 OMR, tax is 1500 OMR, the net income after tax is Answer:Q9. 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 Basis, $ 150,000 225,,000 Gross Income (GI), $ 100,000 100,000 Operating Expense (OE), $ 30,000 10,000 Salvage Value, $ 15,000 22,500 MARCS Depreciation Method ADS-6: Years Recovery Period GDS: 5-Years Recovery Period The TI (taxable income) of Alt. B at the end of year 1 is $45,000. Group of answer choices True False
- Required Answer each of the following questions by providing supporting computations. 1. Assume that the company’s income tax rate is 30% for all items. Identify the tax effects and after-tax amounts of the three items labeled pretax. 2. Compute the amount of income from continuing operations before income taxes. What is the amount of the income tax expense? What is the amount of income from continuing operations? 3. What is the total amount of after-tax income (loss) associated with the discontinued segment? 4. What is the amount of net income for the year?14. Leslie Inc. has correctly determined the following information related to operations for 2018: Revenue from sales Expenses Income before income taxes P7,000,000 4,000,000 P3,000,000 In reviewing the records, you discovered the following items: During 2018, the company discovered an error in depreciation in 2017. The correction of this error, which has not been recorded, will result in an increase in depreciation for 2017 of P200,000. During 2018, the company sustained a loss of P400,000 because of flood, which destroyed its inventory. The company charged retained earnings and credited inventory for P400,000.what is the annual real estate tax on a property that is valued at $135,000 and assessed for tax purposes at $47,250 with an equalization factor of 125%, when the tax rate is $2.50 per $100? a. $1,417.50 b. $1,476.56 c. $4,050 d. None of the above the answer is B but can you show the steps