7E

Genetic Insights Co. purchases an asset for $18,671. 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 $4,447.

Calculate tax paid on gain on disposal. Round the answer to two decimals.

8a

pet sore inc sells on terms of 2/10, net 30. what is the effective annual cost of trade credit under these terms. use a 365-day year. round two decimals in percent form.

Your Answer:

8c

Cheeseburger and Taco Company purchases 19,285 boxes of cheese each year. It costs $11 to place and ship each order and $4.89 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

Calculate Economic Order Quantity.

Round the answer to the whole number.

Your Answer: