Taxes are paid each year on some measure of financial gain. We typically think of financial gain
Question:
Taxes are paid each year on some measure of financial gain. We typically think of financial gain as ‘‘cash inflows minus cash outflows,’’ and yet simply subtracting outflows due to capital investments in plant and equipment that will be used over multiple years is not allowed.
a. Why are these outflows not allowed to just be subtracted?
b. Where do depreciation allowances fit into the tax picture, especially since they are not cash flows?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
a One reason is that US Tax Law prohibits simply s...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Principles Of Engineering Economic Analysis
ISBN: 9781118163832
6th Edition
Authors: John A. White, Kenneth E. Case, David B. Pratt
Question Posted:
Students also viewed these Business questions
-
Hyten Corporation On June 5, 1998, a meeting was held at Hyten Corporation, between Bill Knapp, Director of Marketing/Sales, and John Rich, director of engineering. The purpose of the meeting was to...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
CoursHeroTranscribedText: A 5-year loan in the amount of $48,000 is to be repaid in equal annual payments. What is the remaining principal balance after the third payment if the interest rate is 5...
-
Uniform current sheets are located in free space as follows: 8a z A/m at y = 0, 4a z A/m at y = 1, and 4a z A/m at y = 1. Find the vector force per meter length exerted on a current filament carrying...
-
The equity section of Ahab SA at December 31 is as follows. AHAB SA Statement of Financial Position (partial) Equity Share capital-preference, cumulative, 10,000 shares authorized, 5,000 shares...
-
If services have been rendered to customers during the current accounting period but no revenue has been recorded and no bill has been sent to the customers, why is an adjusting entry needed? What...
-
Calculate Q in Eq. (8.32) and Eq. (8.34) for each of the two partitionings into clusters given in Fig. 8.4. Equation (8.32) Equation (8.34) Figure.8.4 Q[c] = K () 4=1 ie CajeCa kjkj 2L
-
At a local university, the Student Commission on Programming and Entertainment (SCOPE) is preparing to host its first rock concert of the school year. To successfully produce this rock concert, SCOPE...
-
Acqusitions are divided into three types namely i) Merger or Consolidation, ii) Acquisition of Stocks and iii) Acquisition of Assets. Explain briefly the characteristics of Acquisition of Assets.
-
True or False: Based on maximizing the present worth of depreciation allowances, MACRS is preferred to SLN for recovery periods greater than 5 years.
-
A lumber company purchases and installs a wood chipper for \(\$ 200,000\). The chipper is classified as MACRS 7-year property. Its useful life is 10 years. The estimated salvage value at the end of...
-
Dr. Abid Hanson was traveling with his wife and family aboard an Olympic Airways flight from Athens to New York. He suffered from asthma and was affected by secondhand smoke. They were seated in a...
-
When Microsoft launched its Xbox console in 2001 the NPV from the project was negative. However, the company proceeded with the project. Why do you think this was?
-
Since 2007 credit rating agencies have come under a lot of criticism for their role in the subprime mortgage crisis. To what extent do you think credit rating agencies were responsible for the...
-
Ross (1995) puts forward that there are three sources of value in a typical capital budgeting project. Explain these three sources using examples.
-
Define the market portfolio and provide a brief overview of Rolls Critique. Do you agree or disagree with it? Why?
-
Given that the Venezuela Caracas Stock Exchange was up by over 80 per cent for 2011, why didnt all investors put their money in Venezuela?
-
In Larry Nivens science-fiction novel Ringworld, a rigid ring of material rotates about a star (Fig. P13.51) The tangential speed of the ring is 1.25 X 106 m/s, and its radius is 1.53 X 1011 m. (a)...
-
You are maintaining a subsidiary ledger account for Police-Training Expenditures for 2013. The following columns are used: Inventory purchases are initially recorded as expenditures. Record the...
-
As CFO of N Corporation, you observe the preferred stock that N Corp issued 75 years ago at a par value of $100 is now selling for $52. In addition, this preferred stock now pays a dividend of $3.72....
-
Tara and Ronan O'Connell are interested in obtaining life insurance to pay for the tax liability on their estate. Since they are in good health, they anticipate that they will live for another 25...
-
Consider the track shown in the figure below. The section AB is one quadrant of a circle of radius 2.0 m and the spring constant of the spring is 435 N/m. m=1.0 kg 2.0 m B D a) If the entire track is...
Study smarter with the SolutionInn App