Use the Information for the Question(s)below

question 2

Essay

Use the information for the question(s)below.
Kinston Industries is considering investing in a machine that will cost $125,000 and will last for three years.The machine will generate revenues of $120,000 each year and the cost of goods sold will be 50% of sales.At the end of year three the machine will be sold for $15,000.The appropriate cost of capital is 10% and Kinston is in the 21% tax bracket.
-Assume that Kinston's new machine will be depreciated straight line to a salvage value of $5000 at the end of year three.What is the after-tax salvage value of this project?

Grasp the importance of estimating liabilities in accordance with accrual accounting principles.

Understand the implications of environmental liabilities on corporate financial reporting and management.

Recognize the importance of proper journal entries in capturing transactions related to liabilities and contingencies.

Understand the components and classification of fixed assets.

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Definitions:

Canada

A country in North America, known for its vast wilderness, multicultural cities, and bilingual (English and French) heritage.

Modern Passenger Plane

A contemporary aircraft designed for the commercial transportation of passengers, featuring advancements in safety, comfort, and efficiency.

Introduction

An initial section that leads into the subject matter, providing a preview or context.

Passengers

Individuals or travelers transported on a vehicle such as a plane, train, ship, or bus.