Collins Co. began operations in 2012. The company lost money the first two years, but has been profitable ever since. The company's taxable income (EBT) for its first four years are summarized below: Year EBT 2012 -$1,250,000 2013 -$5,200,000 2014 $4,200,000 2015 $8,300,000 The corporate tax rate has remained at 34%. Assume that the company has taken full advantage of the Tax Code's carry-back, carry-forward provisions, and assume that the current provisions were applicable in 2012. What is Collins' tax liability for 2015? a. $2,057,000 b. $2,488,970 c. $2,077,570 d. $1,583,890 e. $2,571,250

Rolston music company is considering the sale of a new sound board used in recording studios. the new board would sell for $27,200, and the company expects to sell 1,570 per year. the company currently sells 2,070 units of its existing model per year. if the new model is introduced, sales of the existing model will fall to 1,890 units per year. the old board retails for $23,100. variable costs are 57 percent of sales, depreciation on the equipment to produce the new board will be $1,520,000 per year, and fixed costs are $1,420,000 per year.if the tax rate is 35 percent, what is the annual ocf for the project?

For 2016, gourmet kitchen products reported $22 million of sales and $19 million of operating costs (including depreciation). the company has $15 million of total invested capital. its after-tax cost of capital is 10%, and its federal-plus-state income tax rate was 36%. what was the firm’s economic value added (eva), that is, how much value did management add to stockholders’ wealth during 2016?

In germany, wal-mart has been required to buy existing retailers rather than open brand-new stores. what does this illustrate