Determine the companys annual average tax rates

Assignment Help Microeconomics
Reference no: EM13184062

Scottsdale Print Shop expects to have an annual taxable income of $300,000 from its regular business over the next two years. The company is also considering the proposed acquisition of a new printing machine to expand current business to offer in its product catalog. Themachine's installed price is $105,000. The machine falls into the MACRS seven-year class, and it will have an estimated salvage value of $30,000 at the end of six years. The machine is expected to generate additional before tax revenue of $140,000 per year.

(a) Determine the company's annual marginal (incremental) tax rates over the next two years with the proposed investment in the printing machine.

(b) Determine the company's annual average tax rates over the next two years with the machine.

Reference no: EM13184062

Questions Cloud

What is the domestic price of chick peas : where P is the price in cents per kilo and Q is the quantity in millions of kilos. Canada is a small producer in the world chick pea market, where the current world price (which will not be affected by anything we do) is 60 cents per kilo. The Gov..
Explain what is the atomic mass of lanthanum : The element lanthanum has an atomic weight of 139 and consists of two stable isotopes lanthanum-138 and lanthanum-139.
Determine the net after-tax cash flows : An auto-part manufacturing company is considering the purchase of an industrial robot to do spot welding, which is currently done by skilled labor. The initial coast of the robot is $250,000, and the annual labor savings are projected to be $140,0..
How many grams of sodium bicarbonate and sodium carbonate : How many grams of sodium bicarbonate and sodium carbonate, respectively, are needed to make 3 liters of 0.075 M buffer,
Determine the companys annual average tax rates : Scottsdale Print Shop expects to have an annual taxable income of $300,000 from its regular business over the next two years. The company is also considering the proposed acquisition of a new printing machine to expand current business to offer in..
State mixture heterogeneous and mixture homogenous : Which term or terms could be used to describe this sample of gold? Check all that apply. mixture heterogeneous mixture homogenous mixture solution pure chemical substance compound element
Dominant position in world affairs-during the 19th century : During the 19th century, Western society assumed a dominant position in world affairs. How and why did such a change happen? How did non-Western societies respond to the West's new found power?
What is the money multiplier : If the reserve ratio is lowered to 8%, what is the money multiplier and what is the maximum amount of money created by the same $5000 deposit, In a t-account show the bank balances for a $5000 deposit with a 10% reserve ratio. What is the money mu..
Legislation in the english legal system : Critically discuss the effectiveness of parliamentary and judicial controls over delegated legislation in the English legal system.

Reviews

Write a Review

 

Microeconomics Questions & Answers

  Describe the existence of negative externalities

.if individuals are free to produce whatever goods they want, then when excess profit is being made, more people will enter into the production of that good and consumers will benefit as the price is pushed down.

  Law of diminishing marginal utility

As in part A there is a 50% chance the share market crashes. If John maximises expected utility, what value of ß should he choose?

  As-ad model for aggregate output

The Fed sells bonds in the open market during a period of low unemployment and no excess industrial capacity. The economy is far below capacity and the government lowers taxes

  Equilibrium price and quantity after the shift of the supply

The demand and supply curves for T-shirts in LA, Ca, are given through the following equations, Determine the equilibrium price and quantity after the shift of the demand curve.

  What are the factors that affect pay differentials?

What are the factors that affect pay differentials? How does each factor increase or decrease relative wages?

  What efficient institutions are adopted in a country

Make sure to label the axis of the graph. Now, add two more production functions based on the following scenarios. a. Efficient institutions are adopted in a country. Label this production function F2. b. A new technology is adopted allowing great..

  Microeconomics multiple choice questions

A country should engage in international trade when the country can give up fewer goods for imported item than is implied by the item's domestic opportunity cost of production.

  Influences on channel selection

Explain the influences on channel selection

  What is the current federal funds rate

HAVE THESE RATES INCREASED OR DECREASED SINCE THE SAME WEEK IN 2008? (FOR EXAMPLE, IF YOU ARE DOING THIS ASSIGNMENT ON AUGUST 18, USE THE RATE FOR THE WEEK INCLUDING AUGUST 18, 2008.)

  Average productivity-marginal productivity

What is average productivity? What is marginal productivity? Explain the relationship between average and marginal productivity. What would happen to average and marginal productivity if a technological innovation were introduced to the production..

  Prohibitions policy by government

Discuss and explain the limitations of the United States "supply side" policy in the war on drugs. Can we win the war on drugs? Describe your position on legalization.

  Herfendahl index ratio

An industry is composed of 20 firms, all with equal sales. The Herfendahl Index ratio in this industry is a. 1000 b. 500 c. 800 d. This cannot be determined from the information given.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd