Solved: Equipment is purchased at a cost of 39000 the salvage value, Accounting Basics

+44 141 628 6080
[email protected]

Equipment is purchased at a cost of 39000 the salvage value

Question - Equipment is purchased at a cost of $39,000. As a result, annual cash revenues will increase by $20,000; annual cash operating expenses will increase by $7,000; straight-line depreciation is used; the asset has a ten-year life; the salvage value is $3,000. Assuming a tax bracket of 34%, determine the accounting rate of return?

A. 13%

B. 16%

C. 27%

D. 33%

Solution Preview :

Prepared by a verified Expert

Accounting Basics: Equipment is purchased at a cost of 39000 the salvage value

Reference No:- TGS02763492

Now Priced at $20 (50% Discount)

Recommended (90%)

Rated (4.3/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Asked Questions

Why you feel unpleasantly hot and sweaty

Working in the yard, you feel unpleasantly hot and sweaty when you come in the house, so you take a shower and begin to feel better.

Identify a true statement about validity

Question: Identify a true statement about validity as applied to a test. Multiple choice question

Problem concerning consensual sexual relationship

Question: Jena and Ben are employees of Big City Electronics. They began to have a consensual sexual relationship.

Describe the results, including any scores

Describe the results, including any scores. Result: E6% Extraverted Action oriented, Outgoing, Expressive, Hands-On S17% Sensing Traditional,

Discussion about gender stereotyping

Prior to your taking this graduate HR law class you had heard of the term "gender stereotyping," but didn't know much about it.

Identify a specific theory of cognitive or moral development

Problem 1: Identify a specific theory of cognitive or moral development, and summarize the major assumptions.

Is lifespan psychologists are unlikely to investigate

Lifespan psychologists are unlikely to investigate both changes as well as consistencies that exist in different individuals'

Solution Preview :

Prepared by a verified Expert

Accounting Basics: Equipment is purchased at a cost of 39000 the salvage value

Reference No:- TGS02763492

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Prepare an income statement a statement of retained

Q : During the month fixed costs were 16800 and variable costs

Q : The assembly division of davenport inc is bidding on an

Q : Design a class named light to represent a conference hall

Q : Equipment is purchased at a cost of 39000 the salvage value

Q : Using lean principles make two recommendations that would

Q : Assuming a tax rate of 39 determine the net present value

Q : Eastern electric currently pays a dividend of about 164 per

Q : If shirt co has a required rate of return of 12 the maximum