Answer to Question 24:
Taxable Income = Sales - Costs - Depreciation Expense - Interest
Expense
Taxable Income = $509,600 - $448,150 - $36,100 - $12,400
Taxable Income = $12,950
Net Income = Taxable Income * (1 - Tax Rate)
Net Income = $12,950 * (1 - 0.28)
Net Income = $9,324
Answer to Question 25:
Future Value = Amount Invested * (1 + Interest
Rate)^Period
Future Value = $95,000 * 1.055^2
Future Value = $105,737.38
Interest Earned = Future Value - Amount Invested
Interest Earned = $105,737.38 - $95,000.00
Interest Earned = $10,737.38
Answer to Question 26:
Amount Invested * (1 + Interest Rate)^Period = Future
Value
$17,500 * 1.067^Period = $50,000
1.067^Period = 2.857143
Period * ln(1.067) = ln(2.857143)
Period = 16.19 years
QUESTION 24 Henry and Gracia Farms has sales of 5509,60D, costs of 5448,150, depreciation expense of...