Ngo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costsamounted to $1,200; and one-year registration of the truck was $100. What is the total amount of costs thatshould be capitalized?A. $60,600B. $66,100C. $54,000D. $59,400
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Ngo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs
amounted to $1,200; and one-year registration of the truck was $100. What is the total amount of costs that
should be capitalized?
A. $60,600
B. $66,100
C. $54,000
D. $59,400
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- DD Company purchases a delivery truck at a cash price of Rs=840,000. Related expenditures are sales taxes Rs= 26,400, painting and lettering Rs=10,000, motor vehicle license Rs= 1200, and a three-year accident insurance policy Rs=30,000. Compute the cost of the delivery truck?Daly Publishing Corporation recently purchased a truck for $43,000. Under MACRS, the first year's depreciation was $8,600. The truck driver's salary in the first year of operation was $61,800. The company's tax rate is 30 percent. Required: 1-a. Calculate the after-tax cash outflow for the acquisition cost and the salary expense. 1-b. Calculate the reduced cash outflow for taxes in the first year due to the depreciation. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Calculate the after-tax cash outflow for the acquisition cost and the salary expense. After-Tax Cash Outflow Acquisition cost Salary expenseDaly Publishing Corporation recently purchased a truck for $30,000. Under MACRS, the first year’s depreciation was $6,000. The truck driver’s salary in the first year of operation was $32,000. The company’s tax rate is 30 percent. Required: 1-a. Calculate the after-tax cash outflow for the acquisition cost and the salary expense. 1-b. Calculate the reduced cash outflow for taxes in the first year due to the depreciation.
- A machine generates $500,000 of gross income during its tax year and incurs operating expenses of $25,000. aditional expences on business assets amount $20,000 and insurances amount $75,000. The total depreciation deductions equal $80,000. if the tax rate is 10 percent from the total texable income of this machine, find the pesent worth of this machine if it is basic cost is 500,000 ? use i=5%.N=10 years. O a. $1,584,859 O b. $2,202,585 Oc. $2,202,356 O d. $2,202,595 O e. $2,202,754A company has purchased a machine (CCA rate 27 %) at $232,000 and has a tax rate of 38.00%. By how much will the NPV change if the company is able to obtain a $15,000 salvage value for its machine at the end of the project's life in Year 4? Assume a discount rate of 10.10% and that all else remains the same. a. $13,031 b. $10,208 c. - $2,823 d. $7,385 e. $10,852Whole Grain Bakery purchases an industrial bread machine for $30,000. In addition to the purchase price, the company makes the following expenditures: freight, $2,000; installation, $4,000; testing, $1,500; and property tax on the machine for the first year, $600. What is the initial cost of the bread machine?
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- Sheridan Company incurs the following costs in purchasing equipment: invoice price, $40,500; shipping, $1,025; installation and testing, $1,600; one-year insurance policy, $2,750.What is the cost of the equipment?DT Ltd. provides you the following information: 1. Purchase price of machine Rs. 1,90,000 2. Installation expenses Rs. 10,000 3. Useful life of machine 5 years 4. Salvage value at the end of useful life nil 5. Tax Rate 30% 6. Cost of capital 10% 7. Cash flows before depreciation and tax Rs. 1,00,000 p.a. Required: Calculate the Discounted Payback Period.M/S Naeem Motors sent 1000 cars to Haseeb on consignment. The cost of each car was (Rs. Use your 4128 but was invoiced to Haseeb at cost plus 25%. The expenses of M/S Naeem Motors were: Freight Rs. 7,000; Insurance Rs. 3,000 During transit one car was destroy and the insurance company admitted Rs. 9,000 towards that Claim. Haseeb sold 70 cars at Rs. 15,000 each and paid for storage and insurance Rs. 3,400. Haseeb then accepted bill for Rs. 90,000 at 3 months drawn by M/S Naeem Motors which they discounted immediately with their banker at 6% p.a. It was agreed that Haseeb is to get 5% commission. Pass Journal entries in the book of consignor and consignee and make necessary accounts in both books.