Solution-What is the tax effect resulting from the profit

What is the tax effect resulting from the profit

Assignment Help Accounting Basics

Reference no: EM132654494

Problem 1: Equipment with a book value of $10,000 will be sold at the end of a project for a salvage value of $6,000. The tax rate is 35%. What is the tax effect resulting from the profit or loss from the sale of the equipment (where a negative number means tax is payable and a positive number means that there is a tax shield)?

Select one:

a. $-3500

b. $3500

c. $1400

d. $-1400

Reference no: EM132654494

Questions Cloud

What is the tax shield resulting from these tax-deductible : What is the tax shield resulting from these tax-deductible shutdown costs? A project will incur $700 in shutdown costs the year after the completion

Find risk neutral probability for pricing a stock option : It is well-known that an American call option written on non-dividend paying stock shouldn't be exercised early. Please explain why an American futures call

Counter-terrorism and weapons of mass destruction : Compare and contrast the counter-terrorism and weapons of mass destruction capabilities of a large municipal police agency with that of your local jurisdiction.

Calculate the equivalent annual rate for products : Martina Williams values education and, therefore, wants to buy a new computer for $3,000 when she begins her study at university. She has no money

What is the tax effect resulting from the profit : What is the tax effect resulting from the profit or loss from the sale of the equipment. Equipment with a book value of $10,000 will be sold at the end

Create a potential scenario where the policy you selected : Create a potential scenario where the policy you selected can benefit a population or healthcare institution. Your scenario should be applicable.

National strategy for homeland security : Discuss the six critical mission areas of the National Strategy for Homeland Security in the context of "all hazards" planning.

Efficiency of depository institutions : Is this a good idea? Has it caused problems or increased the efficiency of depository institutions and the economy? Support your conclusion

Find what is value of incremental free cash flow in year : What is the value of incremental free cash flow in Year 0? The value of incremental, after-tax earnings is $1110 per year. The project will require Net Working.

User Account

All Pages

What is the tax effect resulting from the profit

Reference no: EM132654494

Reference no: EM132654494

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT