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The Melbo Foundation is contemplating the purchase of new equipment, which may potentially increase revenues by 25%. Cur
Posted: Sat May 07, 2022 8:16 pm
by answerhappygod
- The Melbo Foundation Is Contemplating The Purchase Of New Equipment Which May Potentially Increase Revenues By 25 Cur 1 (34.69 KiB) Viewed 19 times
The Melbo Foundation is contemplating the purchase of new equipment, which may potentially increase revenues by 25%. Currently, sales are R850,000 per year and cost of sales are 55% of sales. The equipment is expected to last for 5 years with no residual value (tax allowance granted is at 20% per year). The capex/ cost of equipment R257 500. The corporate tax rate is 28%. Calculate the estimated annual tax payment increase/decrease? R2,065 decrease R12,355 increase R12,075 decrease R2,625 increase