A corporation has decided to replace an existing asset with a newer model. Two years ago, the existing asset originally cost $30,000 and was being depreciated under MACRS using a five-year recovery period. The existing asset can be sold for $25,000. The new asset will cost $75,000 and will also be depreciated under MACRS using a five-year recovery period. If the assumed tax rate is 40 percent on ordinary income and capital gains, the initial investment is ________.
A) $42,000
B) $52,440
C) $54,240
D) $50,000
C) $54,240
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Which of the following items is reported only in current and future periods?
a. Prior period adjustment b. Change in accounting principle c. Change in estimate d. Effects of changing prices
During a managers' meeting, there is difficulty reaching a conclusion on which project to fund in the upcoming year. In arguing for funding for her project, Vivian states that she has experience in making all projects succeed. She even states that she is immune to failure. Vivian is displaying
A. discounting the future. B. illusion of control. C. bargaining. D. benchmarking. E. framing effects.
In the context of prestige pricing, the idea behind skimming pricing is to:
A. increase traffic by special sales on a limited number of products. B. achieve long-term profitability through sheer volume of sales. C. attract consumers toward newly launched products by offering them at rock-bottom prices. D. entice price-insensitive consumers to buy high when a product first enters the market.
Under the Endangered Species Act, what federal agency in the Department of the Interior is responsible for preparing a list of species that are in danger of becoming extinct?
A) National Park Service B) Fish and Wildlife Service C) Bureau of Land Management D) Bureau of Safety and Environmental Enforcement