New equipments for pay-back period

Assignment Help Accounting Basics
Reference no: EM13137600

The Higston Company has just purchased a piece of equipment at a cost of $500,000. This equipment will reduce operating costs by $100,000 each year for the next eight years. This equipment replaces old equipment that was sold for $10,000 cash. Ignoring income taxes, the new equipments has a pay-back period of:

A. 4.9 years.

B. 5 years.

C. 5.1 years.

D. 4.8 years.

Reference no: EM13137600

Income tax expense in income statement

HD determined that it was more likely than not that 30% of the deferred tax asset ultimately would not be realized. HD made no estimated tax payments during 2009. What amoun

Explain the pros and cons of debt financing

Explain the pros and cons of debt financing (borrowing) and equity financing (issuing stock). Examine the balance sheets of a few companies and determine what percentages

The net investment income tax on dividend

Jabar Corporation. a C corporation. projects that It will have taxable income of 5265,000 bertha incurring any tease expenses. labia's tax rated 35 perceM Abdul, Jabars sole

How should a gain from the sale of treasury stock be reflect

How should a "gain" from the sale of treasury stock be reflected when using the cost method of recording treasury stock transactions? Stockholders' equity is generally classi

Customer complaints and returns of a dvd

The Aurora Electronics Company has been receiving a lot of customer complaints and returns of a DVD player that it manufactures. When a DVD is pushed into the loading mechan

Computing dpad of maria corporation

The company also sells dinnerware that is purchased from unrelated foreign producers. During the tax year 2010, Maria had a U.S. profit of $1.2 million (QPAI) and a profit f

What are some ways you can decrease your break-even point

In this discussion forum please talk about your different products and packaging configurations. How could you positively affect your profit using sales mix? What are some w

Record the entry that vesely would make

Vesely needs $160,000 to cover next Friday"s payroll. Its balance of outstanding accounts receivable totals $800,000. To alleviate this cash crunch, the company sells $170,0

Reviews

Write a Review

 
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