This year, Company A built a manufacturing facility in Tennis County. The assessed property tax value...
This year, Company A built a manufacturing facility in Tennis County. The assessed property tax value of the plant is $10 million.
To convince Company A to locate within Tennis County, the county abated its 2% property tax for five years.
The new facility caused other companies to locate in A County raising the assessed value of Tennis property tax base by $15 million (including A's new facility).
Calculate the net effect on Tennis County's current year tax revenue from the above facts.
|
increase by $100,000 |
||
|
increase by $300,000 |
||
|
increase by $200,000 |
||
|
no change |
Homework Answers
Answer:
Correct answer is:
increase by $100,000
Explanation:
Assessed value of Tennis property tax base is raised by amount = $15 million (including A's new facility)
Company A's property tax of 2% on assessed value of $10 million is abated.
Hence net assessed value of property on which property tax is levied = $15 million - $10 million = $5 million
Net effect on Tennis County's current year tax revenue is increase in property tax revenue = $5 million * 2% = $100,000
As such option A is correct and other options B, C and D are incorrect.
Add Answer to:
This year, Company A built a manufacturing facility in Tennis
County. The assessed property tax value...
Property Tax Rate and Revenues Steuben County anticipates appropriations of $10,500,000 and revenue from the state...
Property Tax Rate and Revenues Steuben County anticipates appropriations of $10,500,000 and revenue from the state and other sources of $900,000. During the last fiscal year, the tax rate was $0.85 per $100 of assessed valuation, applied to property assessed at $1,000 million. Uncollectible property taxes are negligible. In the current year, the county’s reassessment program increased the aggregate assessed value of property to $1,050 million. Required Enter numerical answers using all zeros (for parts a & c). Do not...
A company is considering building a new and improved production facility for one of its existing...
A company is considering building a new and improved production facility for one of its existing products. It would be built on a piece of vacant land that the firm owns. This land was acquired four years ago at a cost of $500,000; it has a current market value of $800,000. The building can be erected for $600,000. Machinery (equipment) worth $120,000 needs to be bought. The company will finance the construction of the building and the purchase of the...
Chesterfield County had the following transactions. a. A budget is passed for all ongoing activities. Revenue...
Chesterfield County had the following transactions. a. A budget is passed for all ongoing activities. Revenue is anticipated to be $834,000 with approved spending of $540,000 and operating transfers out of $242,000. b. A contract is signed with a construction company to build a new central office building for the government at a cost of $8 million. A budget for this project has previously been recorded. c. Bonds are sold for $8 million (face value) to finance construction of the...
Lavender manufacturing company began business in the current year. The company uses the simplified method to...
Lavender manufacturing company began business in the current year. The company uses the simplified method to allocate mixed services costs to production. The company's costs and expenses for the year were as follows: Direct labor $3,000,000 Direct materials 4,000,000 Factory supervision 800,000 Property tax on factory 100,000 Personnel department 400,000 Computer operations 250,000 General administration 550,000 Marketing 800,000 State income tax 200,000 Total $10,100,000 A. Determine Lavender's total production costs for the year. B. Assume that the hourly pay for...
1) A company issued a 5 year, 7% B/P with a face value of $300,000 when...
1) A company issued a 5 year, 7% B/P with a face value of $300,000 when the market rate if 8%. How much are the semiannual payments? 2) For 2012, Corn Flake Corporation reported NI of $300,000, interest expense $40,000, and income tax expense $100,000. What is the times interest earned ratio? 3) A company issues an 8 year, 7% B/P with a face value of $200,000 at 98 when the market interest rate is 8%. Interest payments are made...
Aero Motorcycles is considering opening a new manufacturing facility in Fort Worth to meet demand for...
Aero Motorcycles is considering opening a new manufacturing facility in Fort Worth to meet demand for a new line of solar charged motorcycles (who wants to ride on a cloudy day anyway?) The proposed project has the following features: • The firm just spent $300,000 for marketing study to determine consumer demand (@t=0). • Aero Motorcycles purchased the land the factory will be built on 5 years ago for $2,000,000 and owns it outright (that is, it does not have...
An Italian company is considering expanding the sales of its cappuccino machines to the U.S market....
An Italian company is considering expanding the sales of its cappuccino machines to the U.S market. As a result, the idea of a setting up a manufacturing facility in the U.S should be explored. The company estimates the initial demand in U.S will bring in an annual operating profit of $2,500,000, which is expected to keep track with the U.S price level. The new facility will free up the amount currently exported to the U.S market. The company presently realizes...
Saved Help Chesterfield County had the following transactions. a. A budget is passed for all ongoing...
Saved Help Chesterfield County had the following transactions. a. A budget is passed for all ongoing activities. Revenue is anticipated to be $934,000 with approved spending of $568,000 and operating transfers out of $312,00o. b. A contract is signed with a construction company to build a new central office building for the government at a cost of $8,100,000. A budget for this project has previously been recorded. c. Bonds are sold for $8,100,000 (face value) to finance construction of the...
XYZ Inc. manufactures financial calculators. The company is deciding whether to introduce a new calculator. This...
XYZ Inc. manufactures financial calculators. The company is deciding whether to introduce a new calculator. This calculator will sell for $100. The company feels that sales will be 12,500, 13,000, 14,000, 13,200, and 12,500 units per year for the next 5 years. Variable costs will be 25% of sales, and fixed costs are $300,000 per year. The firm hired a marketing team to analyze the viability of the product and the marketing analysis cost $1,500,000. The company plans to use...
One year ago, your company purchased a machine used in manufacturing for $120,000. You have learned...
One year ago, your company purchased a machine used in manufacturing for $120,000. You have learned that a new machine is available that offers many advantages; you can purchase it for $200,000 today. It will be depreciated on a straight-line basis over 5 years, after which it has no salvage value. You expect that the new machine will produce EBITDA (earnings before interest, taxes, depreciation, and amortization) of $100,000 per year for the next 5 years. The current machine is...
Chesterfield County had the following transactions. a. A budget is passed for all ongoing activities. Revenue is anticipated to be $834,000 with approved spending of $540,000 and operating transfers out of $242,000. b. A contract is signed with a construction company to build a new central office building for the government at a cost of $8 million. A budget for this project has previously been recorded. c. Bonds are sold for $8 million (face value) to finance construction of the...
Aero Motorcycles is considering opening a new manufacturing facility in Fort Worth to meet demand for a new line of solar charged motorcycles (who wants to ride on a cloudy day anyway?) The proposed project has the following features: • The firm just spent $300,000 for marketing study to determine consumer demand (@t=0). • Aero Motorcycles purchased the land the factory will be built on 5 years ago for $2,000,000 and owns it outright (that is, it does not have...
Saved Help Chesterfield County had the following transactions. a. A budget is passed for all ongoing activities. Revenue is anticipated to be $934,000 with approved spending of $568,000 and operating transfers out of $312,00o. b. A contract is signed with a construction company to build a new central office building for the government at a cost of $8,100,000. A budget for this project has previously been recorded. c. Bonds are sold for $8,100,000 (face value) to finance construction of the...
One year ago, your company purchased a machine used in manufacturing for $120,000. You have learned that a new machine is available that offers many advantages; you can purchase it for $200,000 today. It will be depreciated on a straight-line basis over 5 years, after which it has no salvage value. You expect that the new machine will produce EBITDA (earnings before interest, taxes, depreciation, and amortization) of $100,000 per year for the next 5 years. The current machine is...
Most questions answered within 3 hours.
-
When 60.1 gg of calcium is reacted with nitrogen gas, 31.7 gg of
calcium nitride is...
asked 2 minutes ago -
The random variable X is exponentially distributed, where X
represents the time it takes for a...
asked 17 minutes ago -
a) Write a verilog module for 1:4 Demultiplexer using verilog
primitives.
b) Design 1-to-4 DEMUX using...
asked 11 minutes ago -
MATLAB
write a MATLAB function (1) output a third-order polynomial
function with the coefficients as the...
asked 24 minutes ago -
A z-score
communicates a raw score’s "relative standing"
under the normal curve in relation to:
asked 33 minutes ago -
An object is vibrating on a spring with the following equation
of motion:
?=(30 ??)cos((2?)/(160)?)
a)...
asked 32 minutes ago -
Vulcan Flyovers offers scenic overflights of Mount St. Helens,
the volcano in Washington State that explosively...
asked 35 minutes ago -
If organizations do not adapt fast enough and move incrementally
from the twentieth-century model to the...
asked 35 minutes ago -
A helium balloon with 2.5L of gas has a gauge pressure of 10,000
Pa. The balloon...
asked 40 minutes ago -
What is responsible for Jupiter's enormous magnetic field?
asked 55 minutes ago -
At the end of the year, a company offered to buy 5,000 units of
a product...
asked 56 minutes ago -
Implement C++ program for each of the following.
Let D = [-48, -14, -8, 0, 1,...
asked 1 hour ago