The Talley Corporation had taxable operating income of $495,000 (i.e., earnings from operating revenues minus all operating costs). Talley also had (1) interest charges of $40,000, (2) dividends received of $20,000, and (3) dividends paid of $25,000. Its federal tax rate was 21% (ignore any possible state corporate taxes). Recall that 50% of dividends received are tax exempt. What is the firm’s taxable income? Round your answer to the nearest dollar.
Answers
Answer: $465,000
Explanation:
To calculate the Taxable income we would have to adjust the figure for dividends received as well as interest.
Now, 50% of dividends received are taxable so let's adjust for that first,
= 20,000 * 0.5
= $10,000
$10,000 of dividends are taxable.
To calculate the Taxable income we have to use the following formula,
Taxable income = Income after operating Costs - Interest Charges + Taxable dividends
= 495,000 - 40,000 + 10,000
= $465,000
That Taxable income is therefore $465,000
Note: The dividends paid are not included here because they are taxable and already included in the Taxable operating income so including it again would amount to Double Counting.
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Answer: Firm's taxable income = $465,000
Explanation:
GIVEN the following :
Taxable operating income = $495,000
Dividend received = $20,000
Interest charges = $40,000
Firm's taxable income =?
NOTE: 50% of dividend received is tax exempt.
Therefore,
0.5 × $20,000 = $10,000
Taxable portion of dividend received = $20,000 - $10,000
Taxable dividend = $10,000
Taxable income = (Taxable operating income + taxable dividend) - interest charges
Taxable income = ( $495,000 + $10,000) - $40,000
Taxable income = $505,000 - $40,000
Firm's taxable income = $465,000
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Bonds issued by the coleman manufacturing company have a par value of $1,000, which of course is also the amount of principal to be paid at maturity. the bonds are currently selling for $940. they have 10 years remaining to maturity. the annual interest payment is 10 percent ($100). compute the yield to maturity.
In planning for your career after high school you should...I need serious help I NEED to pass this test please HELP
Marigold Company owns equipment that cost $936,000 and has accumulated depreciation of $395,200. The expected future net cash flows from the use of the asset are expected to be $520,000. The fair value of the equipment is $416,000. Prepare the journal entry, if any, to record the impairment loss.
_______ is the phenomenon of the shifting of individual management styles to become more similar to one another.
Answers
Answer:
the annual consumer spending is $58,000
Explanation:
The computation of the amount of the wilson family is shown below"
Annual consumer spending is
= Disposable income × marginal propensity to consume + autonomous consumption spending
= $60,000 × 0.8 + $10,000
= $48,000 + $10,000
= $58,000
hence, the annual consumer spending is $58,000
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answers
Answer:
The sales budget
Jefferson Sports Medicine, Inc budgets sales budget (Amounts in $)
Months
Physical examination July August September Total
Basic physical 13,200 14,100 6,300 33,600
Extended physical 25,650 27,000 14,850 67,500
101,100
Explanation:
The sales expense shows the forecasted of sales from the various types of physical examination for a given period. These include the sales expected from Physical examination. The sales are the products of the charge per examination and the number of examinations conducted. It may be computed as follows;
July;
Physical examination
= $60 * 220
= $13,200
Extended physical
= $135 * 190
= $25,650
August
= $60 * 235
= $14,100
Extended physical
= $135 * 200
= $27,000
September
= $60 * 105
= $6,300
Extended physical
= $135 * 110
= $14,850
shows a zero balance.
has been underapplied.
has been overapplied.
Answers
Answer:
has been overapplied.
Explanation:
The net balance of debit and credit of manufacturing overhead account is under or over applied overhead. On debit sides the Actual costs incurred is recorded and overhead applied is recorded in credit side of manufacturing overhead account. Total actual costs are $82,000 ( $30,000 + $24,000 + $28,000 ) and overhead applied is $86,000. Net balance of account is overapplied overhead of $4,000 ( $86,000 - $82,000 ).
$420,000.
$400,000.
$430,000.
Answers
Question: What percentage of the variation in overhead costs is explained by the independent variable
Answer: 82.8%
Explanation:
= 0.848 (84.8%), the explanation of variation in Y from the X regress
Question: What is the total overhead cost for an estimated activity level of 60,000 direct labor-hours
Answer: $410,000
Explanation:
The equation resulting from this regression analysis is:
Total overhead = Estimated fixed cost + Estimated variable cost per labor hour x Labor hours
= Intercept estimate + Coefficient estimate on independent variable x 60,000 DLH
= 110000 + 5 x 60000 DLH
= 110000 + 300000
= 410000
Here is the full question with the appropriate tables.
Cortez Company is planning to introduce a new product that will sell for $108 a unit. The following manufacturing cost estimates have been made on 20,000 units to be produced the first year;
Direct Materials $700,000
Direct Labor $720,000 (= $18 per hour × 40,000 hours)
Manufacturing overhead costs have not yet been estimated for the new product, but monthly date on total production and overhead costs for the post 24 months have been analyzed using simple linear regression. The following results were derive from the simple regression and provide the basis for overhead cost estimates for the new product.
Simple Regression Analysis Results.
Dependent variable-Factory overhead cost-Independent Variable-Direct labor hours Computed values
Intercept $ 120,0000
Coefficient on independent variable $ 5.00
Coefficient of correlation .920
R² .828
What percentage of the variation in overhead costs is explained by the independent variable? 82.8% 91.1% 99.4% 74.5% None of the above.
What is the total overhead cost for an estimated activity level of 60,000 direct labor-hours?
$410,000.
$420,000.
$400,000.
$430,000.
Answer:
R² = 82.8%
$420,000
Explanation:
Given that:
R² = .828
The percentage of the variation in overhead costs explained by the independent variable in Y from the X regressor = %
= 82.8%
Given that:
direct labor-hours = 60,000
To calculate the Total overhead cost; we have:
(Total overhead) to be = Estimated fixed cost + estimated variable cost per
labor hour × labor-hours
= Intercept estimate + Coefficient estimate on
independent variable × 60,000 direct labor-hours
= $120,000 + ($5 × 60,000) direct labor-hours
= $120,000 + $300,000
= $420,000
∴ the total overhead cost for an estimated activity level of 60,000 direct labor-hours = $420,000.
B. "Report any differences on the enclosed statement directly to our auditors; no reply is necessary if this amount agrees with your records"
C. "If you do not report any differences with 15 days, it will be assumed that this statement is correct"
D. "The following invoices have been selected for confirmation and represent amounts that are overdue"
Answers
Answer:
The correct answer is letter "C": "If you do not report any differences with 15 days, it will be assumed that this statement is correct".
Explanation:
Accounts Receivable, or AR, is an accounting term used to refer to the money that is owed to a company by its customers. The customers, who may be individuals or corporations, are the debtors since they owe money for the goods or services provided by the company. When the product is sold in credit the company sets a number of days so that the customer can pay the bill amount. The term usually is 30, 60 or 90 days.
In that sense, and auditor may find 15 days suitable for a debtor for report changes in a statement, otherwise, it is considered as correct.
Answers
Answer:
Explanation:
Antonio used the value of money as a unit of account to compare the value of the two cars namely Super and Duper and come to the conclusion that Duper was cheaper to Super
Antonio saved $ 4000 in his checking account which he gave to the seller. This represent money's role as a store of value
Antonio write a check of the money he saved to the seller and the seller accepted it and gave him the car which fulfill the role of money as a medium of exchange.