2. On January 2, 2017, heavy equipment costing $800,000 was purchased. The equipment had a life of 5 years and no salvage value. The straight-line method of depreciation is used for book purposes and the tax depreciation taken each year is listed below: Tax Depreciation 2017 2018 2019 2020 Total $264,000 $360,000 $120,000 $56,000 $800,000 3. The enacted tax rates are 40% for all years. Instructions (a) Prepare a schedule comparing depreciation for financial reporting and tax purposes. (b) Determine the deferred tax (asset) or liability at the end of 2017.
Answers
Answer:
The solution to the given problem is done below.
Explanation:
(a) Depreciation
for Financial Depreciation for Temporary
Year Reporting Purposes Tax Purposes Difference
2017 $160,000 $264,000 (104,000)
2018 $160,000 $360,000 (200,000)
2019 $160,000 $120,000 40,000
2020 $160,000 $56,000 104,000
2021 $160,000 0 $160,000
$800,000 $800,000 0
(b) 2018 2019 2020 2021 Total
Future taxable
amounts:
Depreciation $(200,000) $40,000 104,000 $160,000 $104,000
Deferred tax liability: $104,000 × 40% = $41,600 at the end of 2017.
Related Questions
A customer buys 100 shares of ABC stock at $44 and sells 1 ABC Jan 45 Call at $5. Subsequently, the market price of ABC goes to $59 and the call contract is exercised. The customer has a:
A company sold equipment for $100,000; the equipment had cost $300,000 and had accumulated depreciation of $180,000. The company’s journal entry to record the sale of the equipment would include a
11) Individual Web pages or clusters of pages that function as supplements to a primary site are ________. A) search engine optimization B) pay-per-click ads C) delighters D) microsites E) touch points
Assume that Jose is indifferent between investing in a corporate bond that pays 10 percent interest and a stock with no growth potential that pays an 9.7 percent dividend yield. Assume that the tax rate on dividends is 15 percent. What is Jose's marginal tax rate?a. 47%.b. 37%.c. 32%.d. 15%.e. None of these.
b. reveals whether a company is competitively stronger than its closest rivals.
c. is a tool for benchmarking whether a firm's strategy is closely matched to industry key success factors.
Answers
Answer:
The correct answer is letter "B": reveals whether a company is competitively stronger than its closest rivals.
Explanation:
The SWOT analysis is composed of a company's four (4) factors: Strengths, Weaknesses, Opportunities, and Threats. Strengths and weaknesses are inner factors of the entity while opportunities and threats are external factors that could influence the operations of the business.
The first layer of the SWOT analysis involves the strengths of the firm which could be optimal employees attitude towards work, efficient and effective customer service or low-cost manufacturing. These are components make companies stronger than their competitors.
Final answer:
A SWOT analysis helps in crafting a strategy that aligns with a company's internal dynamics and its external environment. It is a broad diagnostic tool rather than a mechanism for direct benchmarking against competitors or industry standards.
Explanation:
A SWOT analysis is a strategic planning tool used to identify the Strengths, Weaknesses, Opportunities, and Threats associated with a company or project. Its purpose is to craft a strategy that capitalizes on the company's strengths, mitigates its weaknesses, leverages opportunities and protects against threats.
An effective SWOT analysis:
- Does not directly measure whether a company's value chain is longer or shorter than those of key rivals. Instead, it may highlight areas within the value chain that represent strengths or weaknesses.
- May reveal if a company has competitive strengths or weaknesses relative to its closest rivals, but it does not quantify competitive strength.
- Helps to determine whether a firm's strategy is aligned with industry key success factors, although it is more of a general tool rather than a specific benchmarking mechanism.
The correct answer to the student's question is option c, as it closely aligns with the intent of SWOT analysis to ensure a firm's strategy is in tune with the key success factors of its industry. However, it's worth noting that a SWOT analysis is a broad diagnostic tool and may not necessarily be used for benchmarking in a strict sense.
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Answers
Answer:
Part 1 . Determine the cost of goods manufactured
Direct materials $280,000
Direct labor $324,000
Factory overhead $188,900
Add Opening Stock of Work In Progress Inventory $72,300
Less Closing Stock of Work In Progress Inventory $76,800
Cost of Goods Manufactured $788,700
Therefore cost of goods manufactured is $788,700
Part 2 . Statement of Cost of Goods Manufactured
Opening Stock of Finished Goods Inventory 39,600
Add Cost of Goods Manufactured 788,700
Less Closing Stock of Finished Goods (41,200)
Cost of Goods Manufactured 787100
Explanation:
Part 1 . Determine the cost of goods manufactured
This is a calculation of all Overheads Incurred in the Manufacturing process
Part 2 . Statement of Cost of Goods Manufactured
It is Important to note that Glenville Company is in the Manufacturing Business and their Cost of Sales cost from cost of Finished Goods.This would be the statement available for external use
Answers
Answer:
Fixed Cost:
Total remains unchanged at total level.
And are variable at unit level, increase at lower level and decrease as higher level.
Variable Cost:
At unit cost, are the same, are the cost of producing one unit.
At total variable cost, it will increase along with sales and decrease when the sales are lower.
Explanation:
The unit fixed cost will be variable at unit level. As this amount will be distribute over more or less units.
So an increase of sales, decrease the unit fixed cost
and decrease of sales, increase the unit fixed cost
At total level, the fixed cost are the same for hte relevant range.
Answers
Answer:
Amount dollars
Explanation:
Given
principal amount per month
Total time period years
months
Monthly rate of interest
As we know that
Where A is the amount
P is the principal amount
r is the rate of interest
n is the number of times interest applied over the total time period
t is the total time period
Substituting the given values in above equation, we get -
Final answer:
The payments of $190 per month for 4 years that your parents are giving you at the start of college, assuming an interest rate of .45 percent per month, are worth $7484.86.
Explanation:
The subject of this question is about calculating the present value of an annuity. The formula to calculate the present value of an annuity is PV = PMT * [(1 - (1 + r)^-n) / r], where PV is the present value, PMT is the monthly payment, r is the monthly interest rate, and n is the number of periods. Here PMT = $190, r = .45/100 = .0045, and n = 4 * 12 = 48 months.
Substituting the values into the formula, we get PV = 190 * [(1 - (1 + .0045)^-48)/.0045]. Then, performing the calculations, we get the present value PV = $7,484.86. Therefore, the payments your parents are providing for the 4 years of college are worth $7484.86 when you first start college assuming an interest rate of .45 percent per month.
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Answers
Answer:
b. Increase the supply of the good now
Explanation:
Price expectations are one of the determinants of the supply curve. Changes in expectations will make the curve move right or left depending on whether future prices are expected to be lower or higher.
If prices are expected to be lower in the future, that will generate the supply curve to shift right, increasing the quantity supplied. This has to do with producers seeking to sell their goods at the highest price possible. If prices in the present are higher than what they would be in the future then they would want to sell more now than later.
Answers
Explanation:
Management theories are concepts surrounding recommended management strategies, which may include tools such as frameworks and guidelines that can be implemented in modern organizations. Generally, professionals will not rely solely on one management theory alone, but instead, introduce several concepts from different management theories that best suit their workforce and company culture.