Newton Company is considering the purchase of an asset that will provide a depreciation tax shield of $18,200 per year for 10 years. Assuming the company is subject to a 40% tax rate during the period, and a zero salvage value, what is the depreciable cost of the new asset?
A. $303,333
B. $455,000
C. $182,000
D. Can't be determined from the information provided
Answer: B
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Which of the following statements is CORRECT?
A. If a bond's yield to maturity exceeds its coupon rate, the bond will sell at par. B. All else equal, if a bond's yield to maturity increases, its price will fall. C. If a bond's yield to maturity exceeds its coupon rate, the bond will sell at a premium over par. D. All else equal, if a bond's yield to maturity increases, its current yield will fall. E. A zero coupon bond's current yield is equal to its yield to maturity.
Sustainability refers to ______.
a. the use of methods, systems, and materials that will not deplete resources or harm natural cycles b. a company’s ability to ensure that suppliers deliver raw materials and other inputs on a timely basis over an extended period c. the financial capability of a firm to maintain its operations without resorting to external funding d. the use of proper methods for maintaining the longevity of machines and other equipment
To adjust debt and institute a repayment plan, Bianca—who is not a corpo-ration, a partnership, or a family farmer or fisherman—may file a peti-tion in bankruptcy for relief through
a. a liquidation. b. a reorganization. c. a repayment plan. d. a family-farmer bankruptcy plan.
Which of the following is NOT an economic need?
A. convenience B. hunger C. economy of use D. dependability in use E. efficiency in use