An asset with an original cost of $100,000 and a current book value of $20,000 is sold for $50,000 as
part of a capital budgeting project. The company has a tax rate of 30%. This transaction will have
what impact on the project's initial outlay?
A) reduce it by $15,000 B) reduce it by $50,000
C) reduce it by $6,000 D) reduce it by $20,000
A
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Everett, Miguel, and Ramona are partners, sharing income 1:2:3 . After selling all of the assets for cash, dividing losses on realization, and paying liabilities, the balances in the capital accounts are as follows: Everett, $50,000 Cr.; Miguel, $40,000 Dr.; and Ramona, $30,000 Cr. How much cash is available for distribution to the partners?
a. $120,000 b. $30,000 c. $40,000 d. $90,000
________ is a consumer promotion tool that involves inviting prospective purchasers to try the product without cost in the hope that they will buy
A) Sampling B) Premium C) Cross-promotion D) Free trial E) Rebate
Computers and smartphones have very short product life cycles. This means ______.
A. they need to be replaced only at long intervals B. for these products, new technology is introduced frequently C. consumers usually buy only one unit in their lifetimes D. there are few repeat customers for these products
Which of the following are the recommended percentage groupings of the ABC classifications of the dollar volume of products?
A. A items get 25 percent, B items get 15 percent, and C items get 60 percent. B. A items get 15 percent, B items get 45 percent, and C items get 40 percent. C. A items get 15 percent, B items get 35 percent, and C items get 50 percent. D. A items get 20 percent, B items get 30 percent, and C items get 50 percent. E. A items get 25 percent, B items get 35 percent, and C items get 40 percent.