Question: Please just explain step by step how to do number 4 and 6. o t f Carofs Doils has fixed variable operating cost is $30
o t f Carofs Doils has fixed variable operating cost is $30 operating costs of $25,000. lts sale price is $55 per doll, and its doll it sels 3,000 dolls per month. The firm's earmings betfcre interest and taxes is A $55,000 8.$78,000 Gsso,000 D $37,500 2,0oo Chapter 11 current decision are 5. Cash outlays that had been previously made and have no effect on the cash flows relevant to a called A. opportunity costs foregone sunk costs incremental past expenses D. incremental historical costs 6. A corporation is selling an existing asset for $136,000. The asset, when purchased, cost $100.000, was being depreciated under MACRS using a five year recovery period, and has been depreciated for three full assumed tax rate is 40 percent on ordinary income and capital gains, the tax efflect of this transaction is 10 years 7years Recovery year 10% 18 14% , 25 12 33% 12 :400% retais 100% Totals erientago have been rounded to the nearet abiole percent to simplify calculatios whik realism. To calculate the actual depecciation for tax purposcs, be sure to apply the actuul inrounded ear convenition A $0 tax liability B $42,800 tax liability C $47,560 tax liability D. $54,400 tax liability ou 032471, ,06 0OD 13( ,00
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