Home / Questions / Freedom Corporation acquired a fixed asset for $230000 Its estimated life at time of purch...
Freedom Corporation acquired a fixed asset for $230,000. Its estimated life at time of purchase was 4 years, with no estimated salvage value. Assume a discount rate of 5% and an income tax rate of 40%. (Use Exhibit 12.4, Appendix C, TABLE 1 and Appendix C, TABLE 2.) Required: 1. What is the incremental present value of the tax benefits resulting from calculating depreciation using the sum-of-the-years’-digits (SYD) method rather than the straight-line (SLN) method on this asset? Use the SYD and SLN functions in Excel to calculate depreciation charges. 2. What is the incremental present value of the tax benefits resulting from calculating depreciation using the double-declining-balance (DDB) method rather than the straight-line (SLN) method on this asset? Use the SLN and DDB functions in Excel to calculate depreciation charges. 3. What is the incremental present value of the tax benefits resulting from using MACRS rather than straight-line (SLN) depreciation? The asset qualifies as a 3-year asset. Use the half-year convention.
May 21 2020 View more View Less
What is the implication of a perfectly elastic demand curve for the firm?
Jul 02 2021Which of the following economic indicators measures a specific type of economic activity?A. UnemploymentB. Gross Domestic Product C. Retail sales D. Inflation
Jun 01 2021What is a removable discontinuity?
Jul 09 2021List two important characteristics of each market structure listed below and give a brief explanation of the importance of each.-Competitive market-Monopolistic Competiti...
Aug 19 2021Do you feel that the ban on smoking in all work places, such as those listed in the case, violates the civil rights of smokers? Does smoking in the work place violate th...
Apr 12 2020Please explain in 3 or more sentences if its: True false or uncertain 1)The accumulation of unplanned inventories causes aggregate output to increase. 2)In an aggregate e...
Jun 06 2020Interpret the slope (least squares regression line provided), statistics assignment helpBecause colas tend to replace healthier beverages and colas contain caffeine and p...
Apr 16 2020Bounded rationality differs from the rational model in that decision makers[A]Act irrationally [B]Focus on easy-to-find choices [C]Seek advice from employees [D]Act ou...
Jan 05 2018List four protective covenants that you might be interested in as a prospective bondholder. Briefly describe why these would be realistic bondholder concerns. 124. How wo...
Jan 09 2020Which of the following vectors is the magnitude of the vector equal to one of the components of the vector?a. b. c.
Jun 13 2021