Answer:
c. $20,416.50
Explanation:
Cost of assets = 20,000
Depreciation year 1 = 33% * 20,000 = $6,666
Annual cost saving = 25,000
Tax rate = 25%
Operating cash flow Year 1 = Cost saving*(1 - tax) + Tax*Depreciation
Operating cash flow Year 1 = 25,000*(1-0.25) + 0.25*6,666
Operating cash flow Year 1 = 25,000*0.75 + 0.25*6,666
Operating cash flow Year 1 = 18750 + 1666.5
Operating cash flow Year 1 = $20,416.5
So, the cash-flow from the project in year 1 is $20,416.50
Knowledge management comprises a range of practices concerned with increasing awareness, fostering learning, speeding collaboration and innovation, and exchanging insights of individuals, teams, or entire organizations.
Answer:
Commuting refers to travelling from your home to your workplace. It generally refers to the distance that people generally travel to get to their office or any type of workplace.
While business travel refers to not only leaving your house to go to work, but actually going somewhere else to perform your regular business activities, e.g. going form one state to another to close a sale. In order for business travel to be effectively recognized as such, it must be necessary for your business activity and it should last more than one ordinary workday.
In this case, your client continuously leaves his house and goes form one state to another performing his normal business activities. This perfectly fits the IRS's definition of business travel.
Initially, you can try to solve this issue with IRS Office of Appeals (since you are right), but if that doesn't work, then you can go to Tax Court.
(a) Debt ratio = 0.82
Debt/ Assets = 0.82
Debt/(Debt + Equity) = 0.82
Debt = 0.82Debt + 0.82 Equity
0.18Debt = 0.82 Equity
Equity = 0.18Debt/0.82
Debt/Equity = Debt/(0.18Debt/0.82) = 4.5556
Debt/Equity = 0.82/0.18 =4.5556
Debt-Equity ratio = 4.56 times
(b) Equity Multiple = 1 + Debt-equity ratio
Equity multiplier = 1+4.56 = 5.56
Equity multiplier = 5.56 times
Answer: $129,931.24
Explanation:
Annuity is a stream of equal cash flows that has a specified number of periods. To get the payoff amount for living in the house for 12 years, we calculate the present value of the annuity.
The payoff amount for living in the house for 12 years is $129,931.24.
Check the attached document for the calculation.
