According to Colgate’s 2013 10-K, what factors led to lower effective non-GAAP tax rate during the year as compared to the compa

Response:

The avoidable costs linked to the segment amount to $754,000

Detailed explanation:

The costs tied to the segment under consideration for elimination are as follows:

- Advertising costs = $140,000

- Allocation of costs at the company level = $130,000

- Loss incurred from unsold building (*): $60,000

- Maintenance costs on equipment = $112,000

- Real estate taxes on the building = $12,000

The cumulative cost amounts to $754,000

(*) The earnings from the sold building (book value) = Market value of the building $160,000 - Book value of the building $100,000 = $60,000

Answer: Tom would incur $2,970. in interest beyond repaying his principal of $9000.

To calculate the interest owed on the principal over a specified timeframe at a defined interest rate, we use the simple interest formula.

This Simple Interest Formula is:

where

A = interest earned on the principal

P = the principle or the amount borrowed

r = interest rate

t = the duration in years for which interest is accrued.