7E

Genetic Insights Co. purchases an asset for $16,169. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. Genetic Insights has a tax rate of 30%. The asset is sold at the end of six years for $3,711.

Calculate book value of an asset. Round the answer to two decimals.

Your Answer:

8

8B

Post Card Depot, an large retailer of post cards, orders 6,850,103 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 14 times over the next year. Post Card Depot receives the same number of post cards each time it orders. The carrying cost is $0.16 per post card per year. The ordering cost is $399 per order.

What is the annual ordering cost of the post card inventory?

(Round the answer to two decimal places)

Your Answer:

Book Depot Inc. sells on terms of 3/20, net 65. What is the implicit cost of trade credit under these terms? Use a 365-day year. Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box) Your