This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A type of long-term financing used by both corporations and government entities is ________. A) ... (Read 110 times)

fox

  • Hero Member
  • *****
  • Posts: 540
on: Jul 11, 2018
A type of long-term financing used by both corporations and government entities is ________.
 
  A) common stocks
  B) bonds
  C) preferred stocks
  D) retained earnings

Question 2

A mixer was purchased two years ago for 120,000 and can be sold for 125,000 today. The mixer has been depreciated using the MACRS 5-year recovery period and the firm pays 40 percent taxes on both ordinary income and capital gain.
 
  (a) Compute recaptured depreciation and capital gain (loss), if any.
  (b) Find the firm's tax liability.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

IRincones

  • Sr. Member
  • ****
  • Posts: 321
Reply #1 on: Jul 11, 2018
Answer to Question 1

B

Answer to Question 2

(a) Book Value = 120,000 (1 - 0.20 - 0.32 ) = 57,600
Recaptured depreciation = 125,000 - 57,600 = 67,400
Capital gain = 125,000 - 120,000 = 5,000
72,400
(b) Tax liability = 72,400  0.40 = 28,960


fox

  • Hero Member
  • *****
  • Posts: 540
Reply #2 on: Jul 11, 2018
Thank you


IRincones

  • Sr. Member
  • ****
  • Posts: 321
Reply #3 on: Jul 11, 2018
No problemo


« previous next »
 

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Testing the effects of long-term fertilizing on inter-actions between mycorrhizal fungi and plants o Testing the effects of long-term fertilizing on inter-actions between mycorrhizal fungi and plants o
Local/long distance cell Signaling Local/long distance cell Signaling
Long-term Potentiation in the granule cell layer of the rat hippocampal dentate gyrus. (Traces ... Long-term Potentiation in the granule cell layer of the rat hippocampal dentate gyrus. (Traces ...
The term “natural,” when used on the packaging of meat and poultry The term “natural,” when used on the packaging of meat and poultry
Greater Long-nosed Tree Shrew (Tupaia tana), Borneo and Sumatra. Greater Long-nosed Tree Shrew (Tupaia tana), Borneo and Sumatra.
Video: Cardiac Cycle (Part 1 of 4)

For a complete list of videos, visit our video library