BUSINESS COLLEGE

Daisy, Inc., hopes to report a total book tax expense of $160,000 in the current year. This $160,000 expense consists of $240,000 in current tax expense and an $80,000 tax benefit related to the expected future use of an NOL by Daisy. If the auditors determine that a valuation allowance of $30,000 must be placed against Daisy's deferred tax assets, what is Daisy's total book tax expense

Answers

Answer 1
Answer:

Answer:

$190,000

Explanation:

Calculation for total book tax expense

Using this formula

Total book tax expense=Total book tax expense+Valuation allowance

Let plug in the formula

Total book tax expense=$160,000+$30,000

Total book tax expense=$190,000

Therefore Daisy's total book tax expense will be $190,000

Related Questions

On January 1, 2021, Tropical Paradise borrows $46,000 by agreeing to a 6%, five-year note with the bank. The funds will be used to purchase a new BMW convertible for use in promoting resort properties to potential customers. Loan payments of $889.31 are due at the end of each month with the first installment due on January 31, 2021. Required: Record the issuance of the installment note payable and the first two monthly payments.
Hitzu Co. sold a copier (that costs $4,500) for $9,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 6% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2, the copier requires on-site repairs that are completed the same day. The repairs cost $114 for materials taken from the repair parts inventory. These are the only repairs required in Year 2 for this copier. Based on experience, Hitzu expects to incur warranty costs equal to 4% of dollar sales. It records warranty expense with an adjusting entry at the end of each year.Required:a. How much warranty expense does the company report in 2015 for this copier?b. How much is the estimated warranty liability for this copier as of December 31, 2015?c. How much warranty expense does the company report in 2016 for this copier?d. How much is the estimated warranty liability for this copier as of December 31, 2016?
On May 1, 2017, Crane Company purchased the copyright to Blue Spruce Corp. for $112800. It is estimated that the copyright will have a useful life of 4 years. The amount of amortization expense recognized for the year 2017 would be:_______. a) $28200 b) $15040 c) $18800. d) $14100.
Which of the following would help reduce the amount of frictional unemployment? Choose one or more: (A) Websites that advertise job openings across the country (B) government policies to help promote a stagnant economy (C) providing tax breaks to firms that engage in technological innovations (D) interviewing a wide variety of candidates to ensure a diverse workforce (E) government policies to limit outsourcing of jobs
The Nature Conservancy is one tool that consumers can use to put their money where their mouth is, but it's not the only one. Internet technology is helping large groups of consumers raise money for causes they support. In this case, Internet technology makes it _____________ that the economic pie will be maximized.

Monitoring Central Bank Intervention1) How can your business be affected if the Fed attempts to strengthen the dollar in the for-eign exchange market?2) If the Fed decides to weaken the dollar, how will your business be affected?3) How can indirect central bank intervention affect your business even if there is no impact on exchange rates?

Answers

Answer:

1) if the FED decides to strengthen then dollar, it will make US exports more expensive and imports cheaper. That will cause net exports to decrease, i.e. there will be less exports and more imports.

A strengthening of the US dollar helps importing companies because they will buy cheaper goods from abroad and will be able to sell them at higher domestic prices. On the other hand, exporting companies will be hit because hey loss competitiveness since their products will be more expensive.

2) If the FED decides to weaken the US dollar, the opposite will happen. Exporting companies will be favored, while importing companies will be hurt. The country will start to export more and import less.

3) Generally, the FED intervenes market through its money supply policy. When the interest rate increases or the money supply increases, the value of the US dollar will tend to lower. Even if expansionary monetary policy doesn't have an immediate impact, the expectations do matter. If people expect a devaluation of the US dollar, they will start to buy foreign currencies, which in turn will end up devaluating the US dollar. It is a self-fulfilled prophecy.

Another way the FED impacts businesses is through the interest rate. Lower interest rates will increase both domestic and foreign investment in the US.

Expectations of lower prices in the near future may cause some producers to do what?a. Increase the quantity supplied of the good nowb. Increase the supply of the good nowc. Decrease the supply of the good nowd. Decrease the quantity supplied of the good now

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.

Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January. Sales (3,600 units)$108,000 Variable expenses 49,680 Contribution margin 58,320 Fixed expenses 44,300 Net operating income$14,020 If the company sells 4,300 units, its total contribution margin should be closest to: (Do not round intermediate calculations.)

Answers

Answer:

$69,660

Explanation:

For computing the contribution margin first we have to determine the contribution margin per unit which is shown below:

Contribution margin per unit = Contribution margin ÷ Number of units

= $58,320 ÷ 3,600 units

= $16.2

Now if the sales unit is 4,300 so the contribution margin is

= Sales units × contribution margin per unit

= 4,300 units × $16.20

= $69,660

Exercise 10-6 Direct Materials and Direct Labor Variances [LO10-1, LO10-2] Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 7.40 pounds $ 2.60 per pound $ 19.24 Direct labor 0.45 hours $ 8.00 per hour $ 3.60 During the most recent month, the following activity was recorded: 12,100.00 pounds of material were purchased at a cost of $2.50 per pound. All of the material purchased was used to produce 1,500 units of Zoom. 575 hours of direct labor time were recorded at a total labor cost of $5,750. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month.

Answers

Answer:

Instructions are below.

Explanation:

Giving the following information:

Direct material:

Standard= 7.40 pounds $ 2.60 per pound

Actual= 12,100 pounds of material were purchased for $2.50 per pound.

Direct labor:

Standard= 0.45 hours $ 8.00 per hour

Actual= 575 hours of direct labor time were recorded at a total labor cost of $5,750

Units produced= 1,500

To calculate the direct material price and quantity variance, we need to use the following formulas:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (2.6 - 2.5)*12,100

Direct material price variance= $1,210 favorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

standard quantity= 1,500*7.4= 11,100

Direct material quantity variance= (11,100 - 12,100)*2.6

Direct material quantity variance= $2,600 unfavorable

To calculate the direct labor efficiency and rate variance, we need to use the following formulas:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Standard quantity= 1,500*0.45= 675

Direct labor time (efficiency) variance= (675 - 575)*8

Direct labor time (efficiency) variance= $800 favorable

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Actual rate= 5,750/575= $10

Direct labor rate variance= (8 - 10)*575

Direct labor rate variance= $1,150 unfavorable

A salesperson is trying to decide which element of the sales presentation mix to emphasize in a particular presentation. She wants to make sure her communication will resonate with the prospect. What term describes the process this salesperson is going through?

Answers

A salesperson is trying to decide which element of the sales presentation mix to emphasize in a particular presentation. She wants to make sure her communication will resonate with the prospect. The process through which the salesperson is going through is Persuasive communication process

Answer: Correct answer is Persuasive communication process

Explanation:

Persuasive communication process is one in which the salesperson will try to influence the beliefs and actions of others.She will try to convince employees  to work together in the direction that will help in achieving the goals of the company.

Persuade means to convince others.A persuasive communication focuses on the needs and desires of target audiences. The response of audience become more positive if they feel that communication is fulfilling their needs.if  we deliver a message which audience are looking forward to then they will receive that message easily otherwise they will ignore it.

Our message or the information we are delivering must be supported by statistics and examples. Also We must try to tell them about the benefits associated with the information given.Suppose we want to persuade others about a particular policy than we should tell them regarding benefits associated with that policy and it must be supported with examples.

This will make our communication more persuasive.

The following data relates to Mangini Company's estimated amounts for next year. Estimated: Department 1 Department 2
Manufacturing overhead costs $320,000 $400,000
Direct labor hours 65,000 DLH 75,000 DLH
Machine hours 2,000 MH 2,500 MH
Required:
a. What is the company's plantwide overhead rate if machine hours are the allocation base? (Round your answer to two decimal places.)

Answers

Answer:

$160.00 per machine hour

Explanation:

The plant-wide (blanket ) overhead absorption rate is calculated as follows:

Plant-wide OAR=

Total overheads of all the production departments/ Total machine hours

Plant-wide OAR =  $(320,000 + 400,000)/(2,000+2,500) machine hours

                                        =$160.00 per machine hour
Other Questions
Toledo Tire Company, which has been in business for several years, produces and sells automobile tires, including their all-terrain RP7 tire. The 2018 sales budget for their all-terrain RP7 tire is as follows: Quarter RP7 tires 1 10,000 2 12,000 3 11,000 4 14,000 Per company policy: - management desires an ending inventory of tires each quarter equal to 20% of the next quarter's sales; - sales units of tires in the first quarter of 2019 are expected to be 25% higher than sales for the first quarter of 2018; - beginning inventory of tires on January 1, 2018 is anticipated to be 3,000 units.
Autoliv in Ogden, Utah creates airbags. The deployment time of an airbag should be between 21 and 27 milliseconds and their current average is 22 milliseconds with a standard deviation of 0.25 milliseconds. Determine the process capability index if they were to center the mean.
Perfect Clean, Inc. provides housekeeping services. The following financial data have been provided.Service Revenue$80,000Cleaning Supplies Used22,000Wages Expense19,350Office Rent Expense5,150Depreciation Expense—Machinery550Calculate the contribution margin and the contribution margin ratio. (Round your contribution margin to the nearest dollar, and your contribution margin ratio to two decimal places.)A) $38,650; 48.31% B) $74,850; 93.56%C) $60,650; 75.81% D) $32,950; 41.19%
Suppose the economy starts off producing Natural Real GDP. Next, aggregate demand rises, ceteris paribus. As a result, the price level rises in the short run. In the long run, when the economy has moved back to producing Natural Real GDP, the price level will be- (A) higher than it was in short-run equilibrium. (B) lower than it was in short-run equilibrium but higher than it was originally (before aggregate demand increased). (C) lower than it was originally (before aggregate demand increased). (D) equal to what it was originally (before aggregate demand increased).