The Destin Company has one temporary difference of $160 caused by accelerated tax depreciation on 12/31/14. The difference will reverse evenly over the next four years. Tax Rates are 20% in 2014, 30% in 2015, and 40% in 2016 and beyond. Pretax book income in 2014 is $1,000. What is 2014 Income Tax Expense?

Answers

Answer 1
Answer:

Answer: = $168

Explanation:

Destin Company had a $1,000 income in 2014 but also a temporary difference of $160.

This means that they were taxed on the income less the temporary difference.

= 1,000 - 160

= $840

Tax Expense = 840 * 20%

= $168


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You decided to buy apples at a grocery store somewhere in the mountains. You buy 5 pounds of apples, which are sold for $1.99/lb. (One pound is the unit of force equal to 0.454 kgx9.80 m/s where g = 9.80 m/s2 is the standard value of the acceleration due to the gravity). You overpaid for the apples, since the value of the acceleration due to the gravity at this mountain location is only gmountain 9.79 mis. Determine how much you overpaid for your 5 pounds of apples.
Discuss the customer’s role as a productive resource for the firm. Describe a time when you played this role. What did you do and how did you feel? Did the firm help you to perform your role effectively? How?
Your friend, Suzie Whitson, has designed a new type of outdoor toy that helps children learn basic concepts such as colors, numbers, and shapes. Suzie’s product will target two groups: day care centers in warm climates and home school programs. Her company is Jiffy Jet and costs for last month follow: Factory rent $ 3,130 Company advertising 1,060 Wages paid to assembly workers 30,500 Depreciation for salespersons’ vehicles 2,200 Screws 535 Utilities for factory 845 Assembly supervisor’s salary 3,580 Sandpaper 185 President’s salary 5,180 Plastic tubing 4,050 Paint 285 Sales commissions 1,350 Factory insurance 1,170 Depreciation on cutting machines 2,000 Wages paid to painters 7,550 Assume that Suzie Whitson has decided to begin production of her outdoor children’s toy. Required: 1 and 2. Identify each of the preceding costs as either a product or a period cost. If the cost is a product cost, decide whether it is for direct materials (DM), direct labor (DL), or manufacturing overhead (MOH) and also identify each of the preceding costs as variable or fixed cost
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feels energized coming to work and loves her office environment. She feels comfortable asking fellow workers for help, and they are more than happy to oblige. The team even has dinners together every Thursday after work. What aspect of the company is Kristin happy with

Answers

Answer:

a. Organization culture

Explanation:

Organization culture refers to the working culture in an organization in which the employees behavior, rules, regulations, procedures, policies, plans are applied

Other than this, it also involves incentive schemes, flexible time, cab service, medical insurance, and other perks

Since in the given situation, she feels energized and lover her office environment also they have team dinners on every Thursday after work

So this represents the organization culture

Newark Company has provided the following information: Cash sales, $500,000 Credit sales, $1,400,000 Selling and administrative expenses, $380,000 Sales returns and allowances, $95,000 Gross profit, $1,410,000 Increase in accounts receivable, $60,000 Bad debt expense, $38,000 Sales discounts, $48,000 Net income, $1,030,000 How much cash was collected from customers

Answers

Answer:

$1,840,000

Explanation:

The computation of the cash collected from customers is shown below:

Cash collected from customers = Cash sales + credit sales - increase in account receivable

= $500,000 + $1,400,000 - $60,000

= $1,900,000 - $60,000

= $1,840,000

By adding the cash sales, credit sales and deduct the increase in account receivable we can get the cash collected from customers and the same is shown above

Paradise, Inc., has identified an investment project with the following cash flows.Year Cash Flow1 = $5752= $ 8253= $1,1254 =$1,325(a) If the discount rate is 11 percent, what is the future value of these cash flows in year 4?(b) What is the future value at a discount rate of 16 percent? (c) What is the future value at discount rate of 29 percent?

Answers

Answer and Explanation:

The computation of the future value is shown below;

a. For the year 4

Future value is

= ($575 × 1.11^3) + ($825 × 1.11^2) + ($1,125 × 1.11) + ($1325)

= $4,275.89

b. At  16%

Future value is

= ($575 × 1.16^3) + ($825 × 1.16^2) + ($1,125 x 1.16) + ($1,325)

=$4,637.64

c. At 29%

Future value is

= ($575 × 1.29^3) + ($825 × 1.29^2) + ($1125 × 1.29) + ($1,325)

= $5,383.48

Final answer:

The future values of the cash flows in year 4 for Paradise, Inc. are $4,265 at 11% discount rate, $4,529 at 16% discount rate, and $4,942 at 29% discount rate.

Explanation:

We'll use the future value of a series of cashflows formula (FV = ∑ CF / [(1 +r)^n]) to determine the future value of these investments. The formula essentially totals up the effects of compounding for each of your cashflows.

(a) At 11 percent discount rate, the future value in year 4 comes out to be $4,265.

(b) When the discount rate is 16 percent, the future value in year 4 is $4,529.

(c) At a higher 29 percent discount rate, the future value in year 4 is $4,942.

As the discount rate increases, the future value of the cash flows also increases.

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A7X Corporation has ending inventory of $625,817, and cost of goods sold for the year just ended was $9,758,345. a. What is the inventory turnover? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the days’ sales in inventory? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. How long on average did a unit of inventory sit on the shelf before it was sold? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answers

A. Inventory turnover of A7X corporation is 15.59%.

B. Day's salesin inventory is 23.41

C. The inventory that sat on the shelf before it was sold is 23.41

Inventory turnover is the ratio that shows how many times a firm turned over its inventory related to its cost of goods sold (COGS) in a particular period, typically a year.

Days sales of inventory (DSI) is the average number of days taken for a company to sell its finished products. Days sales in inventory is a tool that helps to determine the efficiency of sales.

The time of days sale of inventory and the time it sits on the shelf is the same.

Hence,

A. Inventory turnover of A7X corporation is 15.59%.

B. Day's sales in inventory is 23.41

C. The inventory that sat on the shelf before it was sold is 23.41

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Final answer:

The inventory turnover for A7X Corporation is 15.59 times, meaning the company sells and replaces its inventory that many times a year. The days' sales in inventory is 23.42 days, which is the average time a unit of inventory sits on the shelf before it's sold.

Explanation:

The subject of this question pertains to the inventory turnover and the days' sales in inventory for A7X Corporation.

a. The inventory turnover is a measure of how many times a company has sold and replaced its inventory during a certain period. We can calculate it by dividing the cost of goods sold ($9,758,345) by the average inventory ($625,817). As such, the inventory turnover for A7X Corporation = 9,758,345 / 625,817 = 15.59 times.

b. The days' sales in inventory refers to the average number of days it takes to sell the inventory. It is calculated by dividing the number of days in a year (365) by the inventory turnover. So, the days' sales in inventory = 365 / 15.59 = 23.42 days.

c. The time a unit of inventory remains on the shelf before it's sold is basically the same as the days' sales in inventory. So, on average, a unit of inventory at A7X Corporation sits on the shelf for 23.42 days before it's sold.

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On April 1, a patent with an estimated useful economic life of 12 years was acquired for $1,500,000. In addition, on December 31, it was estimated that goodwill of $6,000,000 was impaired. a. Record the acquisition of patent.
b. Journalize the adjusting entry on December 31 for the amortization of the patent rights.
c. Journalize the adjusting entry on December 31 for the impaired goodwill.

Answers

Answer:

April 1

Debit : Patent $1,500,000

Credit : Cash $1,500,000

December 31

Debit : Amortization $125,000

Credit : Accumulated Amortization $125,000

December 31

Debit : Impairment loss  $6,000,000

Credit : Accumulated Impairment loss $6,000,000

Explanation:

Both the Amortization and Impairment loss reduce the value of assets. They are therefore expenses accounted in Income Statement.

Amortization : is the loss of value of an asset due to passage of time.

Amortization Expense = (Cost - Residual Amount) ÷ Useful Life

                                     = ( $1,500,000 - $ 0) ÷ 12

                                     = $125,000

Impairment loss : is the excess of the Carrying Amount of an Asset over its Recoverable Amount( Higher of Value in Use and Fair Value less Cost to Sell)

Final answer:

The student’s questions are regarding three transactions under business accounting: the acquisition of a patent, amortization of the patent rights, and impairing goodwill. Each requires different treatments in journalizing and adjusting entries.

Explanation:

The subject pertains to accounting and how to journalize transactions in business. Thus, it falls under the Business category and the complexity suggests it's at the College level.

  1. To record the acquisition of the patent worth $1,500,000, you would first debit (increase) the Patents account and then credit (decrease) the Cash or Payables account. This aligns with the concept accounting for patents.

  2. To journalize the adjusting entry for the amortization of the patent rights on December 31, divide the $1,500,000 over its 12 years useful life, which calculates to $125,000 each year. On December 31, debit (increase) the Amortization Expense account for $125,000 and credit (decrease) the Patents account for $(125,000).

  3. To journalize the adjusting entry on December 31 for the impaired goodwill of $6,000,000, you would debit (increase) the Impairment Loss account for $6,000,000, and then credit (decrease) the Goodwill account for $6,000,000. This represents impaired goodwill recording.

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Seasons Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion method. The contract calls for progress billings and payments of $1,550,000 each quarter. The total contract price is $18,600,000 and Seasons estimates total costs of $17,750,000. Seasons estimates that the building will take 3 years to complete, and commences construction on January 2, 2018. 18). Seasons Construction completes the remaining 25% of the building construction on December 31, 2020, as scheduled. At that time the total costs of construction are $18,750,000.What is the total amount of Revenue from Long-Term Contracts and Construction Expenses that Seasons will recognize for the year ended December 31, 2020?


Revenue Expenses

(A) $18,600,000 $18,750,000

(B) $4,650,000 $ 4,687,500

(C) $4,650,000 $ 5,250,000

(D) $4,687,500 $ 4,687,500

Answers

Answer:

(C) $4,650,000 $ 5,250,000

Explanation:

total contract price is $ 18,600,000

season construction using percentage of completion method.

Amount of revenue & construction expense for the year ended december 31, 2020 will be

25% of $ 18,600,000 revenue = $ 4,650,000

25% of $ 18,750,000 total cost = $5,250,000

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