$4,800
Explanation: The calculation for the increased annual cash inflow is detailed below:
Savings from the new machine's annual maintenance costs = $15,000 - $6,000 = $9,000
Net maintenance savings = $9,000 × (1 - 0.4) = $5,400
Reduction in depreciation due to acquiring new equipment = ($60,000 ÷ 10) - ($45,000 - 10) = $6,000 - $4,500 = $1,500
Tax implications from decreased depreciation = $1,500 × 0.4 = $600
Net annual cash inflow associated with new machinery = Net maintenance savings - Tax impact = $5,400 - $600 = $4,800. Hence, this process yielded the computed additional annual cash inflow.
Explanation:
The Clean Air Act was introduced in 1963 with the aim of safeguarding both the environment and public health in the United States.
Benefits to the environment:
- Minimizes air pollution by imposing standards on industries to regulate the emission of harmful wastes.
- Encourages individuals to be more active due to the availability of clean air
- Safeguards the ozone layer
Drawbacks for the industry:
- Represents a significant obstacle for industries
- Some products cannot be manufactured due to emissions exceeding the limits set by the Clean Air Act.
While the Clean Air Act is crucial for environmental protection, there are many skilled individuals in the industry who can wisely manage pollution and still find success amidst these challenges.
Answer:
Joint Venture
Explanation:
A joint venture occurs when two or more firms enter into a partnership agreement to pursue shared goals within a specific timeframe. This collaboration creates synergy through the shared resources of the involved organizations. This scenario is similar, with three organizations forming a contract and agreeing to pool their resources to achieve a mutual objective. Once this goal is accomplished, the partnership (Joint Venture) will be terminated.
Answer:
Explanation:
The journal entry is presented beneath:
Cash A/c $18,000
To Service revenue A/c $18,000
(Accountable for the receipt)
In this transaction, we debit the cash account because cash has been received and credit the service revenue since the service has been performed. Both entries are made for the amount of $18,000 to ensure accurate recording.
