As the Staff Accountant for NYC Investment Center #1,compute the Center's

question 39

Essay

As the staff accountant for NYC Investment Center #1,compute the center's EVA,using the following information:
$\begin{array}{lr}\text { Pretax Operating income } & 900,000 \\\text { Income taxes } & 270,000 \\\text { Total assets } & 1,500,000 \\\text { Total liabilities } & 1,000,000 \\\text { Long-term liabilities } & 100,000 \\\text { Cost of capital } & 55 \%\end{array}$

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Definitions:

Deferred Tax Liability

A tax obligation that a company owes but is not yet required to pay, resulting from temporary differences between the company's accounting and tax treatment of assets and liabilities.

Revenue

The total income generated by a company from its normal business operations.

Taxable

Pertaining to income or transactions subject to tax by governmental authorities.

Income Tax Rate

The percentage of an individual's or corporation's income that is paid to the government as tax.