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 103 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?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

Walt Disney helped combat malaria by making an animated film in 1943 called The Winged Scourge. This short film starred the seven dwarfs and taught children that mosquitos transmit malaria, which is a very bad disease. It advocated the killing of mosquitos to stop the disease.

Did you know?

A good example of polar molecules can be understood when trying to make a cake. If water and oil are required, they will not mix together. If you put them into a measuring cup, the oil will rise to the top while the water remains on the bottom.

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

Long-tailed Widowbird Long-tailed Widowbird
Long-Term Potentiation and Long-Term Depression Long-Term Potentiation and Long-Term Depression
Seven black members of Congress in 1871 are from left to right: Senator Hiram Revels (R-MS) and Repr Seven black members of Congress in 1871 are from left to right: Senator Hiram Revels (R-MS) and Repr
Carbonyl groups reaction type Carbonyl groups reaction type
I need help fill up the chart attached phtoto long question I need help fill up the chart attached phtoto long question
No payments were made on a $2,598 loan during its three-year term. What was the annually ... No payments were made on a $2,598 loan during its three-year term. What was the annually ...
Video: Epinephrine/NE (heart rate, altered blood flow, glycogenolysis & bronchodilation)

For a complete list of videos, visit our video library