Answer: -9
Explanation:
The Tax multiplier of a nation shows how much the aggregate demand of an economy will change if there is a change in taxes.
It is calculated by the formula:
= -MPC / ( 1 - MPC)
= -0.9 / (1 - 0.9)
= -9
If taxes are reduced, aggregate demand would increase by 9 times.
Firms HL and LL are identical except for their financial leverage ratios and the interest rates they pay on debt. Each has $23 million in invested capital, has $3.45 million of EBIT, and is in the 25% federal-plus-state tax bracket. Firm HL, however, has a debt-to-capital ratio of 50% and pays 12% interest on its debt, whereas LL has a 30% debt-to-capital ratio and pays only 10% interest on its debt. Neither firm uses preferred stock in its capital structure. Calculate the return on invested capital (ROIC) for each firm. Round your answers to two decimal places.
Answer:
ROIC for firm HL = 11.25%
ROIC for firm LL = 11.25%
Explanation:
Given:
EBIT = $3,450,000
Tax rate = 25%
Invested capital = $23,000,000
Note that the information above is the same for both firms HL and LL. This implies that their ROIC will be the same as calculated below:
ROIC = (EBIT * (100% - Tax rate)) / Invested capital ……………………. (1)
Substituting the values into equation (1), we have:
ROIC = ($3,450,000 * (100% - 25%)) / $23,000,000 = 0.1125, or 11.25%
Therefore, we have:
ROIC for firm HL = 11.25%
ROIC for firm LL = 11.25%
On December 31, 2018, a company had assets of $20 billion and stockholders' equity of $16 billion. That same company had assets of $40 billion and stockholders' equity of $13 billion as of December 31, 2019. During 2019, the company reported total sales revenue of $13 billion and total expenses of $11 billion. What is the company's debt-to-assets ratio on December 31, 2019
Answer:
62.50 %
Explanation:
Debt-to-assets ratio = Interest bearing debt / total assets x 100
where,
Accounting Equation :
Assets = Equity + Liability
also stated,
Liability = Assets - Equity
therefore
Interest bearing debt = Assets - Equity
Equity = Stocks + Retained Earnings
for 2019
Equity = $13 billion + ($13 billion - $11 billion) = $15 billion
Interest bearing debt = $40 billion - $15 billion = $25 billion
therefore,
Debt-to-assets ratio = $25 billion / $40 billion x 100 = 62.50 %
Conclusion
The company's debt-to-assets ratio on December 31, 2019 is 62.50 %
Engler Company purchases a new delivery truck for $55,000. In addition, the sales taxes are $4,000. Engler also paints on the logo of the company on the side of the truck for $1,600. The truck license is an additional $160. The truck also undergoes a one-time safety testing for $290. Finally, the truck also requires a tune up and oil change for $500. What does Engler record as the cost of the new truck
Answer:
$61,390
Explanation:
Calculation to determine What does Engler record as the cost of the new truck
Using this formula
Cost of new truck=Purchase price+Sales tax, painting +Logo on the side of the truck +Safety testing +Tune up and oil change
Let plug in the formula
Cost of new truck=$55,000 + $4,000 + $1,600 + $290 +$500
Cost of new truck= $61,390
Therefore what Engler will record as the cost of the new truck is $61,390
DeShawn wants to fill out a financial application For post secondary education. What personal Information does DeShawn Most likely need to fill Out the application?
His income
His childhood address
His extracurricular activities
His grade point average in high school.
Answer:his income
Explanation:
His income should be need to fill out the application.
The following information should be considered:
Since the person wants to fill out the financial application. So here only his income needs to fill so that his earning capacity should be known. The address, extracurricular activities, and the grade point should not be relevant in the given situation.Therefore we can conclude that His income should be need to fill out the application.
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Although ZipCar has some routine operating tasks, its rules and regulations are, for the most part, not strict. ZipCar's decision making does not follow a strict chain of command, and first-line customer service agents have the authority to make decisions without management approval. This information primarily indicates that ZipCar lacks ________. a organizational culture b cross-functional teams c bureaucratic characteristics d cost controls e strategic alliances
Answer: bureaucratic characteristics
Explanation:
From the information given, we can say that ZipCar lacks bureaucratic characteristics. A bureaucratic organization is an organization with several layers of systems and processes and this brings about complexity and delay in decision making as it is hierarchical.
Since ZipCar's decision making does not follow a strict chain of command, and the first-line customer service agents have the authority to make decisions without management approval, this shows that the organization lacks bureaucratic characteristics.
discuss the nature of COIDA
Answer:
please give me brainlist and follow
Explanation:
The main objective of the COIDA is to facilitate a process which provides for payment of medical treatment and compensation for disablement caused by occupational injuries and diseases sustained by employees in the course of their employment, or for death resulting from such injuries or diseases;
8. What is an example of a situation in which a shortage is caused by a change in
supply?
Answer:
Temporary supply constraints, e.g. supply disruption due to weather or accident at a factory.
Fixed prices – and unexpected surge in demand, e.g. demand for fuel in cold winter.
Government price controls, such as maximum prices.
Monopoly which restricts supply to maximise profits.
Assume Zap Industries reported the following adjusted account balances at year-end. 2019 2018 Accounts Receivable $ 2,496,320 $ 1,937,472 Allowance for Doubtful Accounts (126,400 ) (103,360 ) Accounts Receivable, Net $ 2,369,920 $ 1,834,112 Assume the company recorded no write-offs or recoveries during 2019. What was the amount of Bad Debt Expense reported in 2019
Answer: $23,040
Explanation:
Based on the information given in the question and assuming the company recorded no write-offs or recoveries during 2019, the amount of Bad Debt Expense reported in 2019 will be the difference between the ending balance of the allowance account and the beginning balance of the allowance account. This will be:
= $126,400 - $103,360
= $23,040
Therefore, the correct answer is $23,040
The capital budgeting committee of the Caldwell Pipe Corporation is evaluating the possibility of replacing its old pipe-bending machine with a more advanced model. Information on the existing machine and the new model follows: Existing machine New machine Original cost $200,000 $400,000 Market value now 80,000 Market value in year 5 0 20,000 Annual cash operating costs 40,000 10,000 Remaining life 5 yrs 5 yrs Refer to Caldwell Pipe Corporation. If the company buys the new machine and disposes of the existing machine, corporate profit over the five-year life of the new machine will be ________ than the profit that would have been generated had the existing machine been retained for five years.
Answer:
Caldwell Pipe Corporation
If the company buys the new machine and disposes of the existing machine, corporate profit over the five-year life of the new machine will be ___$150,000_____ than the profit that would have been generated had the existing machine been retained for five years.
Explanation:
a) Data and Calculations:
Existing machine New machine
Original cost $200,000 $400,000
Market value now 80,000
Market value in year 5 0 20,000
Annual cash operating costs 40,000 10,000
Remaining life 5 yrs 5 yrs
Total cash operating costs $200,000 $50,000
Difference between the annual cash operating costs = $150,000 ($200,000 - $50,000)
b) Corporate profit is based on the difference between the net revenue and the cost of operations. With the old machine, the total cash operating costs after 5 years will be $200,000 ($40,000 * 5). On the other hand, with the new machine, the total cash operating costs after 5 years will be $50,000 ($10,000 * 5). This makes an operating cost difference of $150,000 ($200,000 - $50,000).
the burning of candle stick is a good example of ____change .(a) temporary (b) permanent (c) conditionally
Answer:
Explanation:
Option A temporary is the correct answer
Suppose that low-skilled workers employed in clearing woodland can each clear one acre per month if each is equipped with a shovel, a machete, and a chainsaw. Clearing one acre brings in $1,000 in revenue. Each worker’s equipment costs the worker’s employer $150 per month to rent and each worker toils 40 hours per week for four weeks each month. a. What is the marginal revenue product of hiring one low-skilled worker to clear woodland for one month?
Answer: $1000
Explanation:
Marginal Revenue Product simply refers to the additional revenue that's gotten when one or more unit of input is used. It is the marginal revenue that us gotten as a result of additional resource.
From the question, we are informed that clearing one acre brings in $1,000 in revenue, therefore the marginal revenue product of hiring one low-skilled worker to clear woodland for one month is $1000
Flexible Budget for Assembly Department Steelcase Inc. (SCS) is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it assembles filing cabinets in an Assembly Department. Assume the following information for the Assembly Department: Direct labor per filing cabinet 18 minutes Supervisor salaries $250,000 per month Depreciation $18,500 per month Direct labor rate $28 per hour Prepare a flexible budget for 70,000, 80,000, and 90,000 filing cabinets for the month ending February 28 in the Assembly Department, similar to Exhibit 5.
Answer:
Results are below.
Explanation:
Giving the following formula:
Direct labor per filing cabinet= 18/60= 0.3
Direct labor rate $28 per hour
The supervisor salary and depreciation will remain constant, we will not take them into account.
70,000 units:
Direct labor hours= (0.3*70,000)= 21,000
Direct labor cost= 21,000*28= $588,000
80,000 units:
Direct labor hours= (0.3*80,000)= 24,000
Direct labor cost= 24,000*28= $672,000
90,000 units:
Direct labor hours= (0.3*90,000)= 27,000
Direct labor cost= 27,000*28= $756,000
\AllCity, Inc., is financed 40% with debt, 8% with preferred stock, and 52% with common stock. Its cost of debt is 5.7%, its preferred stock pays an annual dividend of $2.49 and is priced at $30. It has an equity beta of 1.15. Assume the risk-free rate is 1.7%, the market risk premium is 7.3% andAllCity's tax rate is 35%. What is its after-tax WACC? [Note: Assume that the firm will always be able to utilize its full interest tax shield.]
Answer:
WACC = 6.38%
Explanation:
Cost of equity = 1.7% + (1.15 x 5.6%) = 8.14%
Weight of equity = 52%
After tax cost of debt = 5.7% x (1 - 35%) = 3.705%
Weight of debt = 40%
Cost of preferred stock = $2.49 / $30 = 8.3%
Weight of preferred stock = 8%
WACC = (8.14% x 0.52) + (3.705% x 0.4) + (8.3% x 0.08) = 6.3788% ≈ 6.38%
Lara uses the standard mileage method for determining auto expenses. During 2020, she used her car as follows: 21,800 miles for business, 4,360 miles for personal use, 6,540 miles for a move to a new job, 2,180 miles for charitable purposes, and 1,090 miles for medical visits. Presuming that all the mileage expenses are allowable (i.e., not subject to percentage limitations), what is Lara's deduction for:
Answer:
A. Business $11,881
B. Charitable $305.2
C. Medical $196.2
Explanation:
Calculation to determine Lara's deduction for:
a. Deduction for Business= (21,800 miles x .545)
Deduction for Business= $11,881
b. Deduction for Charitable= (2,180 miles x .14)
Deduction for Charitable= $305.2
c. Deduction for Medical=(1,090 miles x .18)
Deduction for Medical=$196.2
Therefore Lara's deduction are:
A. Business $11,881
B. Charitable $305.2
C. Medical $196.2
The master budget of Sheridan Company shows that the planned activity level for next year is expected to be 50000 machine hours. At this level of activity, the following manufacturing overhead costs are expected: Indirect labor $720000 Machine supplies 180000 Indirect materials 150000 Depreciation on factory building 90000 Total manufacturing overhead $1140000 A flexible budget for a level of activity of 60000 machine hours would show total manufacturing overhead costs of
Answer:
$1,350,000
Explanation:
Calculation to determine the total manufacturing overhead costs
First step is to calculate the Variable overhead
Variable overhead= $720,000 + $180,000 +$150,000
Variable overhead=$1,050,000
Second step is to calculate Unitary variable overhead
Unitary variable overhead= $1,050,000/50,000
Unitary variable overhead= 21
Now let calculate the total manufacturing overhead costs
For 60,000 units:
Total Manufacturing Overhead Costs = 21*60,000 + 90,000
Total Manufacturing Overhead Costs= $1,350,000
Therefore the total manufacturing overhead costs is $1,350,000
Merchandise that is priced significantly lower than what customers expect to pay is likely to remain unsold.
a) True
b) False
The Manchester Corporation manufactures wooden pictures frames. In order to better manage costs, the Manchester Corporation had previously developed the following standards for the manufacture of its product:
Each unit should have 3/4 of a pound of direct materials purchased at $12 per pound.
Each unit should be produced in 48 minutes at a direct labor cost of $16 per hour. The company had the following detailed retails:
Actual production was 20,000 units using 14,600 pounds of direct materials at a total cost of $168,000 and required 11,000 direct labor hours at a total cost of $190,000.
Questions
The Manchester Corporation manufactures wooden pictures frames. In order to better manage costs, the Manchester Corporation had previously developed the following standards for the manufacture of its product:
Each unit should have 3/4 of a pound of direct materials purchased at $12 per pound.
Each unit should be produced in 48 minutes at a direct labor cost of $16 per hour. The company had the following detailed retails:
Actual production was 20,000 units using 14,600 pounds of direct materials at a total cost of $168,000 and required 11,000 direct labor hours at a total cost of $190,000.
What is the company cost variance related to direct labour
Answer:
Direct labour cost total Variance = $66,000 favorable
Explanation:
The direct labor cost total variance is the difference between standard labour cost of the actual production achieved and the actual labour cost.
The standard labour cost of labour per unit of output is not given. So, we work it out first
Standard labour cost per unit= 48/60× $16= 12.8 per unit
$
20,000 units should have cost (20,000× 12.8) 256,000
but did cost 190,000
Direct labour cost total Variance 66,000 favorable
Direct labour cost total Variance = $66,000 favorable
The Direct Labor cost variance is $66,000.
What is labor cost variance?It is the difference between the standard and actual labor cost required to produce goods or services.
Labor cost variance= Standard Cost of Labor – Actual Cost of Labor .
Given:
1 unit=3/4th pound of direct material at the rate $12/ pound
1 unit takes 48 minutes
Direct labor cost=$16/ hour
Actual production=20,000 units
Direct material required = 14,600 pounds
Total cost=$168,000
Required - direct labor hours=11,000 at total cost $190,000.
Standard labor cost per unit= time taken to complete 1 unit X hourly Rate of labor
= 48/60× $16= 12.8 per unit
Standard Cost of labor (20,000× 12.8) $256,000
Less-Actual Cost of labor (given) $190,000
Direct labor cost Variance $66,000
Therefore, the Labor cost variance is $66,000.
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For an open economy under a floating exchange rate regime, _________________________.
a.) Monetary policy is highly effective.
b.) Fiscal policy is highly effective.
c.) Monetary policy is ineffective.
d.) B and C.
Monopsonistic exploitation is A. the difference between the number of workers employed by a competitive firm and those employed by a monopsonist. B. the difference between the marginal revenue product of labor and the wage paid by the monopsonist. C. equal to the marginal factor cost of the monopsonist. D. the difference between the monopsony wage and the competitive wage.
Answer:
B. the difference between the marginal revenue product of labor and the wage paid by the monopsonist.
Explanation:
An employee can be defined as an individual who is employed by an employer of labor to perform specific tasks, duties or functions in an organization.
Basically, an employee is saddled with the responsibility of providing specific services to the organization or company where he is currently employed while being paid a certain amount of money hourly, daily, weekly, or monthly depending on the contractual agreement between the two parties (employer and employee).
Hence, while an employer may be the owner of a business firm or company, an employee is a subordinate employed to provide unwavering services to the employer while also, being professional and diligent at all times.
Monopsony involves a situation in which an employer has numerous employees who are seeking to gain employment. Thus, this phenomenon avails employers the ability or opportunity to take undue advantage of the employees through exploitations by setting lower wages while employing fewer employees or workers.
Hence, monopsonistic exploitation is the difference between the marginal revenue product of labor and the wage paid by the monopsonist.
The net income reported on the income statement is $97,309. However, adjusting entries have not been made at the end of the period for the
supplies expense of $2,135 and accrued salaries of $1,163. Net income, as corrected, is
a. $96,146
b. $97,309
c. $94,011
d. $95,174
Esquire Inc. uses the LIFO method to report its inventory. Inventory at January 1, 2021, was $420,000 (21,000 units at $20 each). During 2021, 82,000 units were purchased, all at the same price of $23 per unit. 86,000 units were sold during 2021. Assuming an income tax rate of 25%, what is LIFO liquidation profit or loss that the company would report in a disclosure note accompanying its financial statements
Answer: Profit of $9,000
Explanation:
First find the Cost of goods sold assuming the LIFO was used. 82,000 of the most recent stock will be sold and 4,000 will be taken from the beginning stock to reach 86,000 units.
= (82,000 units * 23) + (4,000 * 20)
= $1,966,000
LIFO liquidation profit(loss):
= (Sales - Cost of Goods sold) * ( 1 - Tax)
Selling price is assumed to be $23 which is cost of recent inventory.
= [(86,000 * 23) - 1,966,000 ] * (1 - 25%)
= 12,000 * 0.75
= $9,000
Gary Radio Corporation is a subsidiary of Salem Companies. Gary makes car radios that it sells to retail outlets. It purchases speakers for the radios from outside suppliers for $56 each. Recently, Salem acquired the Hyden Speaker Corporation, which makes car radio speakers that it sells to manufacturers. Hyden produces and sells approximately 200,000 speakers per year, which represents 70 percent of its operating capacity. At the present volume of activity, each speaker costs $48 to produce. This cost consists of a $32 variable cost component and an $16 fixed cost component. Hyden sells the speakers for $60 each. The managers of Gary and Hyden have been asked to consider using Hyden's excess capacity to supply Gary with some of the speakers that it currently purchases from unrelated companies. Both managers are evaluated based on return on investment. Hyden's manager suggests that the speakers be supplied at a transfer price of $60 each (the current selling price). On the other hand, Gary's manager suggests a $56 transfer price, noting that this amount covers total cost and provides Hyden a healthy contribution margin.
a. What transfer price would you recommend?
b. Discuss the effect of the intercompany sales on each manager's return on investment.
c. Should Hyden be required to use more than excess capacity to provide speakers to Gary? In other words, should it sell to Gary some of the 200,000 units that it is currently selling to unrelated companies? Why or why not?
Answer:
Salem Companies
a. I recommend a transfer price of $56 per unit (in view of the excess capacity).
b. The intercompany sales at $56 per unit will increase Hyden's return on investment because it will use excess capacity to produce the required units while still selling to outside customers at $60 per unit. With regard to Gary's return on investment, there will be no change as this is the same price it buys from outside suppliers. However, if the price were to be $60 per unit, the return on investment will reduce while skyrocketing Hyden's.
c. Hyden can still sell some of the 200,000 units that it currently sells to unrelated companies at $56 if the outside demand is less than 200,000 units or if Gary will buy at $60 per unit.
Explanation:
a) Data and Calculations:
Purchase price from outside suppliers = $56 each
Production units of Hyden = 200,000
Capacity of Hyden = 285,714
Unit cost at present volume of activity = $48
Variable cost = $32
Fixed cost = $16
Transfer price by Hyden at $60:
Profit per unit = $12 ($60 - $48)
Return on investment = 25% ($12/$48 * 100)
Transfer price at $56 using excess capacity:
Incremental profit per unit = $24 ($56 - $32)
Incremental return on investment = 75% ($24/$32 * 100)
Transfer price at $56 producing below capacity:
Profit per unit = $8 ($56 - $48)
Return on investment = 16.7% ($8/$48 * 100)
who is she what’s her product and company??
Answer:Harpo Productions (or Harpo Studios) is an American multimedia production company founded by Oprah Winfrey and based in West Hollywood, California. It is the sole subsidiary of her media and entertainment company Harpo, Inc.
Explanation:
Bank reconciliations
Answer:
When you reconcile your business bank account, you compare your internal financial records against the records provided to you by your bank. A monthly reconciliation helps you identify any unusual transactions that might be caused by fraud or accounting errors, and the practice can also help you spot inefficiencies.
Meaning:
A bank statement is a list of all transactions for a bank account over a set period, usually monthly. The statement includes deposits, charges, withdrawals, as well as the beginning and ending balance for the period.
Leisure Lodge Corporation is expected to pay the following dividends over the next four years: $22.00, $15.00, $6.00 and $3.20. Afterwards, the company pledges to maintain a constant 4 percent growth rate in dividends forever. If the required return on the stock is 19 percent, what is the current share price
Answer:
P0 = $45.299899 rounded off to $45.30
Explanation:
The dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under DDM is,
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + [(Dn * (1+g) / (r - g)) / (1+r)^n]
Where,
D1, D2, ... , Dn is the dividend expected in Year 1,2 and so ong is the constant growth rate in dividendsr is the discount rate or required rate of returnP0 = 22 / (1+0.19) + 15 / (1+0.19)^2 + 6 / (1+0.19)^3 + 3.2 / (1+0.19)^4 +
[(3.2 * (1+0.04) / (0.19 - 0.04)) / (1+0.19)^4]
P0 = $45.299899 rounded off to $45.30
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Which of these are mathematical laws that help us solve numerical problems? O A decimals O B. graphs O C. formulas OD. percentages O E. tractions
Answer:
The answer is C. Formulas.
Explanation:
Formulas: It is just a mathematical rule that is expressed in numerals or some other symbols and is used to solve a numerical problem.
1. Using a plantwide overhead rate based on cases, compute the overhead cost that is assigned to each case of Extra Fine Salsa and each case of Family Style Salsa. 2. Using the plantwide overhead rate, determine the total cost per case for the two products if the direct materials and direct labor cost is $9 per case of Extra Fine and $8 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $17 per case and the market price of Family Style Salsa is $12 per case, determine the gross profit per case for each product. 3.b. What might management conclude about the Family Style Salsa product line
Malone Co. owned 70% of Bernard Corp.'s common stock. During November 2021, Bernard sold merchandise to Malone for $150,000. At December 31, 2021, 40% of this merchandise remained in Malone's inventory. For 2021, gross profit percentages were 25% of sales for Malone and 30% of sales for Bernard. The amount of intra-entity gross profit remaining in ending inventory at December 31, 2021 that should be eliminated in the consolidation process is: Multiple Choice $18,000. $45,000. $36,000. $11,250. $14,400.
Answer:
$18,000
Explanation:
Calculation to determine what The amount of intra-entity gross profit remaining in ending inventory at December 31, 2021 that should be eliminated in the consolidation process is:.
Using this formula
Intra-Entity Gross Profit =(Transfer Price × Percentage of Bernard's GP) × Intra-Entity Transfers Remaining in Ending Inventory
Let plug in the formula
Intra-Entity Gross Profit=($150,000×30% )×40%
Intra-Entity Gross Profit=$45,000×40%
Intra-Entity Gross Profit=$18,000
Therefore The amount of intra-entity gross profit remaining in ending inventory at December 31, 2021 that should be eliminated in the consolidation process is:$18,000
Sara works at a printing company. She and her colleagues have to stagger
their tasks carefully because each of their projects require not only the
printers, but other equipment as well. Sara is currently working to fulfill an
order for 5,000 flyers, which are due tomorrow. Her customer just called to
say that they need additional 5,000 flyers.
What will be least important to Sara as she determines whether her company
can accommodate the request?
A. Whether her company has enough paper on hand
B. Whether her company can print the additional flyers without
negatively affecting the other projects
C. Whether there is enough time to print the additional flyers by
tomorrow
D. Why the customer needs 5,000 extra flyers
Answer: D. Why the customer needs 5,000 extra flyers
Explanation:
The important factors that Sara will consider to know whether her company can accommodate the request are:
• Whether her company has enough paper on hand
• Whether her company can print the additional flyers without negatively affecting the other projects
• Whether there is enough time to print the additional flyers by tomorrow.
These factors above are important as they'll determine if she can accept the request or not. For example, in a situation where there's no enough paper, then the request should not be accepted.
The least important factor for Sara to consider will be "Why the customer needs 5,000 extra flyers". This is not of concern to Sara and shouldn't bother her.
Answer:
D. why the customer needs 5,000 extra flyers
On January 2, 2018, Ava Co. issued at face value $119,600 of 7% bonds convertible in total into 13,686 shares of Ava's common stock. No bonds were converted during 2018. Throughout 2018, Ava had 10,000 shares of common stock outstanding. Ava's 2018 net income was $110,936. The income tax rate is 30%. No potential common shares other than the convertible bonds were outstanding during 2018. The numerator in the diluted earnings per share calculation for 2018 would be:
Answer:
$116,796.4
Explanation:
The computation of the numerator in diluted earning per share is given below
As we know that
Diluted earning per share = Net income + ( interest expense × (1 - tax rate)) ÷ diluted potential common stock
Now the numerator is
= Net income + ( interest expense × (1 - tax rate))
= $110,936 + ($119,600 ×0.07 × (1 - 0.30))
= $110,936 + $5,860.4
= $116,796.4
