Answer:
Direct labor costs= $47,760
total manufacturing overhead= $10,575
Explanation:
Giving the following information:
Production= 315 + 318 + 362= 995 units
Each unit requires 3 direct labor hours.
Hourly rate= $16
Variable overhead per unit= $5
Fixed overhead= $5,600
First, we need to calculate the direct labor hours:
Direct labor hours= 995*3= 2,985
Now, the direct labor costs:
Direct labor costs= $47,760
Finally, the total manufacturing overhead:
total manufacturing overhead= 5,600 + 5*995
total manufacturing overhead= $10,575
Which of the following gives suggestions for new product and also help to market new product.
A. Existing product and services
B.federal government
C.Distribution channel
D.creativeness
Answer:
A
Explanation:
The City of Cowling decides to construct a new library, which it estimates will cost $8.5 million. The City will finance the library with a state construction grant of $3 million; a general obligation bond issuance of $5 million; and a transfer from the General Fund of $500,000. Prepare journal entries to record the following transactions in the Capital Projects Fund. No budgetary entries other than encumbrances should be recorded.
Answer:
a. Dr Cash 500,000
Cr Transfer in from General Fund 500,000
b. Dr Cash 5,000,000
Cr Other financing source—long-term debt issued 5,000,000
c. Dr Encumbrances—capital project 8,300,000 Cr Budgetary fund balance reserved for encumbrances 8,300,000
d. Dr Cash 3,000,000
Cr Revenues—construction grant 3,000,000
e. Dr Budgetary fund balance reserved for encumbrances 8,300,000
Cr Encumbrances—capital project 8,300,000
Dr Expenditures—construction costs 8,400,000 Cr Retainage payable 840,000
Cr Construction contracts payable 7,560,000
f. Dr Construction contracts payable 7,560,000 Cr Cash 7,560,000
g. Dr Retainage payable 840,000
Cr Cash 840,000
h. Dr Transfer out to Debt Service Fund 100,000
Cr Cash 100,000
Explanation:
Preparation of the journal entries to record the Capital Projects Fund
a. Dr Cash 500,000
Cr Transfer in from General Fund 500,000
b. Dr Cash 5,000,000
Cr Other financing source—long-term debt issued 5,000,000
c. Dr Encumbrances—capital project 8,300,000 Cr Budgetary fund balance reserved for encumbrances 8,300,000
d. Dr Cash 3,000,000
Cr Revenues—construction grant 3,000,000
e. Dr Budgetary fund balance reserved for encumbrances 8,300,000
Cr Encumbrances—capital project 8,300,000
Dr Expenditures—construction costs 8,400,000 Cr Retainage payable 840,000
(10%*8,400,000)
Cr Construction contracts payable 7,560,000
(8,400,000-840,000)
f. Dr Construction contracts payable 7,560,000 Cr Cash 7,560,000
(8,400,000-840,000)
g. Dr Retainage payable 840,000
Cr Cash 840,000
(10%*8,400,000)
h. Dr Transfer out to Debt Service Fund 100,000
Cr Cash 100,000
The United States Postal Service (USPS) is in which type of market structure?
A. Pure Competition
B. Monopolistic Competition
C. Oligopoly
D. Pure Monopoly
Coronado Industries sells one product and uses a perpetual inventory system. The beginning inventory consisted of 79 units that cost $19 per unit. During the current month, the company purchased 483 units at $19 each. Sales during the month totaled 365 units for $44 each. What is the cost of goods sold using the LIFO method?
Answer:
the cost of goods sold under LIFO method is $6,935
Explanation:
The computation of the cost of goods sold under LIFO method is shown below:
= Sales during the month × cost per unit
= 365 units × $19
= $6,935
Hence, the cost of goods sold under LIFO method is $6,935
We simply applied the above formula
Several financial or economic factors are relevant to the rent-or-buy decision. From the following list, identify the financial or economic factors that should be considered when performing this analysis. Check all that apply.
a. The pride that comes from owning your own home
b. Current and expected future housing prices
c. Current and expected future housing-related tax deductions
Answer:
The financial and economic factors that should be considered when performing this analysis are:
b. Current and expected future housing prices
c. Current and expected future housing-related tax deductions
Explanation:
a) A rent-or-buy decision should be based on financial and economic factors. There is the financial implication of making a down payment, closing costs, and maintenance expenses when one decides to own a home instead of renting an apartment. However, for the occupant, renting provides the advantage of known monthly costs. Some advantages of owning a house are building equity and tax benefits. The pride that comes that comes from owning a home is not a financial and economic benefit.
In 1961, NASA began admitting women into its astronaut training program. They performed well in the training but none of them ever served as astronauts because NASA changed its rules to require jet fighter experience for astronauts. Since women were not eligible to fly jet fighters, they could not qualify for space duty.
Required:
Would these women have had a claim under Title VII?
Answer:
Yes, they could make a claim due to disparate impact.
Explanation:
NASA wasn't barring females candidates directly since they were allowed into the selection process, but by requesting something that no woman could do, they were indirectly prohibiting them from becoming astronauts.
Which of the following policies would lead to greater productivity in the printing industry? Check all that apply. Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts Sharply increasing the interest rate on student loans to people pursuing advanced degrees in printing Subsidizing research and development into new printing technologies Imposing a tax on printing presses
Answer:
✓Subsidizing research and development into new printing technologies
✓.Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts
Explanation:
Productivity can be regarded as
ratio that exist between output volume and volume of inputs. It is a term used to describe how efficient production input is, such as capital as well as labor. It provides
efficiency of production.
As regards to printing industry, some of the policies that would lead to greater productivity in the printing industry are;
✓Subsidizing research and development into new printing technologies
✓.Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts
On January 1, Year 1, Friedman Company purchased a truck that cost $35,000. The truck had an expected useful life of 200,000 miles over 8 years and a $7,000 salvage value. During Year 2, Friedman drove the truck 33,000 miles. The company uses the units-of-production method. The amount of depreciation expense recognized in Year 2 is: (Do not round intermediate calculations.)
Answer:
$4620
Explanation:
Activity method based on hours worked = (hours worked that year / total hours of the machine) x (Cost of asset - Salvage value)
33,000 / 2000,000) x ($35,000 - $7000) = $4620
The risk free rate currently have a return of 2.5% and the market risk premium is 7.83%. If a firm has a beta of 1.42, what is its cost of equity
Answer:
13.62 %
Explanation:
Cost of Equity = 2.5% + 7.83% x 1.42 = 13.62 %
Many commodities have futures markets associated with them. A futures market is a prediction market that aggregates information based on uncertain events that may impact the market, and buyers commit to a financial contract in which they obligate themselves to purchasing a fixed quantity of the asset at a specified price on a certain date. In April, 2019, the national average price of unleaded gasoline was $2.87 per gallon. At the same time, the futures price for a June contract on unleaded gasoline was $2.07 per gallon.
A. The forecasted price in the futures market suggests that unleaded gasoline prices will_____by June of 2019.
B. If the information transmitted in this market is accurate and unbiased, then the predict____the actual price we will see in June.
Answer:
Answer is explained in the explanation section below.
Explanation:
Solution:
a.
Unleaded fuel prices are expected to fall by June 2019 according to future demand forecasts.
Since the future price is less than the spot price, it would be better for long-term buyers who can wait for the price to increase because the market is currently in BACKWARDATION. This happens due to a short-term disparity in demand and supply.
b.
If the information in this sector is reliable and impartial, the expected June price will most likely be similar to the real price we will see in June.
It is reliable if the market is accurate and impartial, i.e. the market research on which knowledge flows.
The prices of goods are either integrated or expressed in such a flow of knowledge.
So, if it's unbiased and reliable, the forecast prices would be reasonably similar to the real future price.
Answer:
A. Decline
B. Close to
Explanation:
A. The prediction market for gasoline is much lower so prices would need to decline
B. Due to the information being accurate, it is safe to assume that the predicted price will we close to the actual price
How do you solve this :(!! Need a chart
Answer:
Purchases
Date Qty Unit Cost Total Cost
11 14 $15 $210
21 9 $16 $144
Cost of Sales
Date Qty Unit Cost Total Cost
14
14 $15 $210
6 $16 $96
25
9 $16 $144
5 $16 $80
Total $530
Inventory
Qty Unit Cost Total Cost
9 $16 $144
Total $144
Explanation:
LIFO method assumes that the units to arrive last, will be sold first. Also note that the perpetual Inventory method is used. This means the cost of sales and inventory value is calculated after every transaction.
So with LIFO , Cost of Sales will be calculated on recent prices (later prices) whilst Inventory will be valued at earlier prices (old prices).
The following data represent the beginning inventory and, in order of occurrence, the purchases and sales of Quebec, Inc. for an operating period. Units Unit Cost Total Cost Units Sold Beginning Inventory 32 $54 $1,728 Sale No. 1 10 Purchase No. 1 28 60 1,680 Sale No. 2 32 Purchase No. 2 20 57 1,140 Totals 80 $4,548 42 Assuming Quebec, Inc. uses FIFO periodic inventory procedures, the ending inventory cost is:
Answer:
Quebec, Inc.
Assuming Quebec, Inc. uses FIFO periodic inventory procedures, the ending inventory cost is:
= $2,220.
Explanation:
a) Data and Calculations:
Units Unit Cost Total Cost Units Sold
Beginning Inventory 32 $54 $1,728
Sale No. 1 10
Purchase No. 1 28 60 1,680
Sale No. 2 32
Purchase No. 2 20 57 1,140
Totals 80 $4,548 42
Ending Inventory using FIFO periodic inventory system:
Units of ending inventory = 38 (80 - 42)
Units are from: Units Unit Cost Total Cost
Purchase No. 1 18 60 $1,080
Purchase No. 2 20 57 1,140
Ending Inventory 38 $2,220
A business must decide whether to open a new office in China. If it opens the
branch, it will increase its chances of selling a high volume of its products in
China. On the other hand, the business will have to spend a lot of money to
make the branch operational.
What would be an opportunity cost for the business if it chooses not to open
the new branch in China?
O A. The business would increase its marginal benefits on each
product it makes
O B. The business would lose the chance to make more money in
China.
O C. The business would have to open a new branch in a different
country
O D. The business would be able to use the money it saves on other
projects.
This morning, you purchased a seventeen-year, 6.45% annual coupon bond with face value of $1,000 at a price of $1,030.04. Just after purchasing the bond, the yield to maturity of the bond falls to 5.50 percent and stays at that level throughout your investment period. If you sell your bond after holding it for seven years, what will be your realized rate of return
Answer:
6.73%
Explanation:
the price of the bond in seven years is:
PV = $1,000 / (1 + 5.50%)¹⁰ = $585.43
PV of coupon payments = $64.50 x 7.538 (PVIFA, 5.5%, 10 years) = $486.20
market price = $1,071.63
using an excel spreadsheet of financial calculator, the annual rate of return:
year 0 = -1030.04
year 1 = 64.5
year 2 = 64.5
year 3 = 64.5
year 4 = 64.5
year 5 = 64.5
year 6 = 64.5
year 7 = 1136.13
IRR = 6.73%
Sarasota’s Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred. June 1 Purchased books on account for $1,140 from Catlin Publishers, terms 2/10, n/30. 3 Sold books on account to Garfunkle Bookstore for $1,080. The cost of the books sold was $650. 6 Received $40 credit for books returned to Catlin Publishers. 9 Paid Catlin Publishers in full. 15 Received payment in full from Garfunkle Bookstore. 17 Sold books on account to Bell Tower for $1,100. The cost of the merchandise sold was $780. 20 Purchased books on account for $600 from Priceless Book Publishers, terms 1/15, n/30. 24 Received payment in full from Bell Tower. 26 Paid Priceless Book Publishers in full. 28 Sold books on account to General Bookstore for $1,300. The cost of the merchandise sold was $770. 30 Granted General Bookstore $140 credit for books returned costing $70.
Journalize the transactions for the month of June for Sarasota Warehouse using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Record journal entries in the order presented in the problem. Round answers to 2 decimal places, e.g. 125.53.)
Answer:
01-Jun
Dr Inventory $1,140
Cr Accounts Payable $1,140
03-Jun
Dr Accounts Receivable $1,080
Cr Sales $1,080
03-Jun
Dr Cost of goods sold $650
Cr Inventory $650
06-Jun
Dr Accounts Payable $40
Cr Inventory $40
09-Jun
Dr Accounts Payable $ 1,100
Cr Cash $ 1,078
Cr Inventory $ 22
15-Jun
Dr Cash $1,080
Cr Accounts Receivable $1,080
17-Jun
Dr Accounts Receivable $1,100
Cr Sales $1,100
17-Jun
Dr Cost of goods sold $780
Cr Inventory $780
20-Jun
Dr Inventory $600
Cr Accounts Payable $600
24-Jun
Dr Cash $ 1,078
Dr Sales Discounts $ 22
Cr Accounts Receivable $1,100
26-Jun
Dr Accounts Payable $600
Cr Cash $594
Cr Inventory $ 6
28-Jun
Dr Accounts Receivable $1,300
Cr Sales $1,300
28-Jun
Dr Cost of goods sold $770
Cr Inventory $770
30-Jun
Dr Sales Returns & Allowances $140
Cr Accounts Receivable $140
30-Jun
Dr Inventory $70
Cr Cost of goods sold $70
Explanation:
Preparation of the Journal entries for the month of June for Sarasota Warehouse using a perpetual inventory system.
Journal entries
01-Jun
Dr Inventory $1,140
Cr Accounts Payable $1,140
03-Jun
Dr Accounts Receivable $1,080
Cr Sales $1,080
03-Jun
Dr Cost of goods sold $650
Cr Inventory $650
06-Jun
Dr Accounts Payable $40
Cr Inventory $40
09-Jun
Dr Accounts Payable $ 1,100
($1,140-$40)
Cr Cash $ 1,078
($1,100-$22)
Cr Inventory $ 22
($1,100*2%)
15-Jun
Dr Cash $1,080
Cr Accounts Receivable $1,080
17-Jun
Dr Accounts Receivable $1,100
Cr Sales $1,100
17-Jun
Dr Cost of goods sold $780
Cr Inventory $780
20-Jun
Dr Inventory $600
Cr Accounts Payable $600
24-Jun
Dr Cash $ 1,078
($1,100-$22)
Dr Sales Discounts $ 22 ($1,100*2%)
Cr Accounts Receivable $1,100
26-Jun
Dr Accounts Payable $600
Cr Cash $594
($600-$6)
Cr Inventory $ 6
($600*1%)
28-Jun
Dr Accounts Receivable $1,300
Cr Sales $1,300
28-Jun
Dr Cost of goods sold $770
Cr Inventory $770
30-Jun
Dr Sales Returns & Allowances $140
Cr Accounts Receivable $140
30-Jun
Dr Inventory $70
Cr Cost of goods sold $70
"Suppose that, initially, both Jerome and Anita spend four hours each day doing floral arrangements and two hours each day doing deliveries. Now suppose they change their tasks, so that each individual does nothing but the task in which she or he has a comparative advantage. How many more floral arrangements and deliveries could they produce each day"
Answer:
hello your question has some missing parts below is the missing part
Davis Florist has two employees, Anita and Jerome, and two tasks that need to be completed, floral arrangements and floral delivery. It takes Anita 30 minutes to finish one floral arrangement and 40 minutes to make a delivery. It takes Jerome 10 minutes to finish one floral arrangement and 30 minutes to make a delivery. Each worker works six hours per day.
answer : 4 Floral arrangements and 2 Floral deliveries
Explanation:
Number of hours spent on Floral arrangements = 4
number of hours spent on Deliveries = 2
The tasks where each staff have comparative advantage is a task they do better and faster when doing both tasks ( i.e. A task with a lower opportunity cost )
For Jerome this task is ; Floral arrangements
For Anita this task is ; Deliveries
because They both have a lower opportunity cost here
Determine How many more floral arrangements and deliveries could they produce each day
There will be an additional 4 Floral arrangements and 2 additional Floral deliveries
To determine additional Floral arrangement we will consider Jerome
= (( 4 * 60 ) / 10 )
= 24 / 6 = 4
Questions and answer
Financial information is presented below: Operating Expenses $ 91100 Sales Returns and Allowances 17000 Sales Discounts 12400 Sales Revenue 320100 Cost of Goods Sold 174200 The amount of net sales on the income statement would be
Answer:
$290,700
Explanation:
The amount of net sales on the income statement is computed as shown below;
Net sales = Sales revenue - Sales discount - Sales return and allowance
Net sales = $320,100 - $12,400 - $17,000
Net sales = $290,700
cube root of 9 rational or irrational
Actual sales revenue in dollars is 3.5% higher than budgeted, actual sales price is 10% lower than budgeted, actual sales volume in units is 15% higher than budgeted, actual input prices are 5% lower than budgeted, and actual input quantities per unit are 5% lower than budgeted. Characterize input price and input efficiency variances as favorable (F) or unfavorable (U):
Answer:
Input price and input efficiency variances are:
Favorable.
Explanation:
The input price is the cost of production. When the actual cost of production (input price) is 5% lower than budgeted, it is a favorable outcome. Similarly, when the input efficiency (that is the quantity of input) is 5% lower than budgeted, it shows a favorable outcome. Therefore, the variances of these input elements (price and efficiency) are all together favorable.
A company issued 5%, 20-year bonds with a face amount of $100 million. The market yield for bonds of similar risk and maturity is 4%. Interest is paid semiannually. At what price did the bonds sell
Answer:
The bond was sold at $1,136.78.
Explanation:
Annual coupon = Bond face value * Coupon rate = $1000 * 5% = $50
Annual coupon discount factor = ((1 - (1 / (1 + r))^n) / r) .......... (1)
Where;
r = semi-annul interest rate = 4% / 2 = 2%, or 0.02
n = number of period = 20 years * Number of semiannuals in a year = 20 * 2 = 40 semi-annuals
Substituting the values into equation (1), we have:
Annual coupon discount factor = ((1-(1/(1 + 0.02))^40)/0.02) = 27.3554792407382
Present value of coupon = (Annual coupon * Annual coupon discount factor) / 2 = ($50 * 27.3554792407382) / 2 = $683.886981018455
Present value of the face value of the bond = Face value / (1 + r)^n = $1,000 / (1 + 0.02)^40 = $452.890415185236
Therefore, we have:
Price of bond = Present value of coupon + Present value of the face value of the bond = $683.886981018455 + $452.890415185236 = $1,136.77739620369
Approximating to 2 decimal places, we have:
Price of bond = $1,136.78
Therefore, the bond was sold at $1,136.78.
Assume the cholesterol levels in a certain population have mean µ= 200 and standard deviation σ = 24. The cholesterol levels for a random sample of n = 9 individuals are measured and the sample mean x is determined. What is the z-score for a sample mean x = 180?
a. –3.75
b. –2.50
c. −0.83
d. 2.50
The required z-score for the given sample mean would be -0.83. which is the correct answer would be an option (C).
What is Z -score?A Z-score is defined as the fractional representation of data point to the mean using standard deviations.
Given the mean µ= 200 and standard deviation σ = 24. The cholesterol levels for a random sample of n = 9 individuals are measured sample mean is 180.
To determine the Z-score for the given sample mean
⇒ z-score = (X-ц )/σ
Here,
ц = 200
σ = 24
X = 180
Substitute the values in the above formula,
⇒ z-score = (180 - 200)/24
⇒ z-score = -20 /24
⇒ z-score = -0.833
Therefore, the required z-score for the given sample mean would be -0.83.
Hence, the correct answer would be an option (C).
Learn more about the z-score here:
brainly.com/question/13793746
#SPJ6
Following is the stockholders’ equity section from the The Coca-Cola Company 2017 balance sheet. (All amounts in millions except par value.)
The Coca-Cola Company Shareowners' Equity December 31, 2017
Common stock-$0.25 par value; authorized-11,200 shares; issued-7,040 shares $1,760
Capital surplus 15,864
Reinvested earnings 60,430
Accumulated other comprehensive income (loss) (10,305)
Treasury stock, at cost-2,781 shares (50,677)
Equity attributable to shareowners of The Coca-Cola Company $17,072
Required:
a. Compute the number of shares outstanding.
b. At what average price were the Coca-Cola shares issued? Round answer to two decimal places.
Answer and Explanation:
a. The computation of the no of shares outstanding is shown below:
No. of shares outstanding is
= shares issued - shares held as treasury stock
= 7,040 shares - 2,781 shares
= 4,259 shares
b. The average price is
= (Common Stock value + Capital Surplus) ÷ No. of shares issued
=($1,760 + $15,864) ÷ 4259 shares
= $4.14
explain the difference between production control and production planning
Answer:
Planning of the manufacturing process is deciding in advance what to do, how to do, when to do it and who is to do it. Controlling of the manufacturing process measures the digression of actual performance from the standard performance and takes corrective actions.
Explanation:
Reynolds Manufacturers Inc. has estimated total factory overhead costs of $104,000 and expected direct labor hours of 13,000 for the current fiscal year. If job number 117 incurs 1,720 direct labor hours, Work in Process will be debited and Factory Overhead will be credited for a.$104,000 b.$52,000 c.$1,720 d.$13,760
Answer:
Work in Process 13.760
Manufacturing Overhead 13,760
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 104,000 / 13,000
Predetermined manufacturing overhead rate= $8 per direct labor hour
Now, we can allocate overhead to Job 117:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 8*1,720
Allocated MOH= $13,760
Work in Process 13.760
Manufacturing Overhead 13,760
Chess Top uses the perpetual inventory system. On May 1st, the beginning inventory consisted of 480 units that cost $65 each. During the month, the company made two purchases: May 3rd, 720 units at $68 each May 20th, 360 units at $70 each. Chess Top also sold 800 units on May 10th , Using the LIFO method, what is the amount of cost of goods sold for themonth
Answer:
the amount of the cost of goods sold is $55,120
Explanation:
The computation of the cost of goods sold for the month is shown below:
Since 800 units were sold out of which 360 units would sold at $70 and the remaining units i.e. 440 units would be sold at $68
= 360 units × $70 + 440 units × $68
= $25,200 + $29,920
= $55,120
Hence, the amount of the cost of goods sold is $55,120
One of the reasons we make bad decisions is because we have to rely on our perceptions.
a. True
b. False
Answer:
false??
Explanation:
TPW, a calendar year taxpayer, sold land with a $549,000 tax basis for $820,000 in February. The purchaser paid $89,000 cash at closing and gave TPW an interest-bearing note for the $731,000 remaining price. In August, TPW received a $60,550 payment from the purchaser consisting of a $36,550 principal payment and a $24,000 interest payment. Assume that TPW uses the installment sale method of accounting.
a. Compute the difference between TPW's book and tax income resulting from the installment sale method.
b. Is this difference favorable or unfavorable?
c. Using a 21 percent tax rate, compute PTR's deferred tax asset or liability (identify which) resulting from the book/tax difference.
Complete this question by entering your answers in the tabs below.
Required A Required B Required C
Compute the difference between TPW's book and tax income resulting from the installment sale method. (Round gross profit percentage to 2 decimal places, and intermediate calculations to the nearest whole dollar amount.)
Book/tax difference
Answer:
a. Difference between book income and tax income = $229,505.73
b. The difference between book income and tax income is favorable.
c. Deferred tax liability = $48,196.20
Explanation:
a. Compute the difference between TPW's book and tax income resulting from the installment sale method.
This can be computed as follows:
Amount realized on sale of land = Cash paid by purchaser + Value of interest- bearing note given by the purchaser = $89,000 + $731,000 = $820,000
Adjusted tax basis in land = $549,000
Book income = Amount realized on sale of land - adjusted tax basis in hand = $820,000 - $549,000 = $271,000
Gross profit percent = Book income / Amount realized on sale of land = $271,000 / $820,000 = 0.3305, or 33.05%
Cash received on sale of land = Cash paid by purchaser + Principal payment received in August = $89,000 + $36,550 = $125,550
Tax income =Cash received on sale of land * Gross profit percent = $125,550 * 33.05% = $41,494.28
Difference between book income and tax income = Book income - Tax income = $271,000 - $41,494.28 = $229,505.73
b. Is this difference favorable or unfavorable?
Since the book income greater than the tax income, this implies that the difference between book income and tax income is favorable.
c. Using a 21 percent tax rate, compute PTR's deferred tax asset or liability (identify which) resulting from the book/tax difference.
Deferred tax liability = Difference between book income and tax income * 21% = $229,505.73 * 21% = $48,196.20
The decisions of a mediator are?
King Company issued bonds with a face amount of $1,600,000 in 2015. As of January 1, 2020, the balance in Discount on Bonds Payable is $4,800. At that time, King redeemed the bonds at 102. Assuming that no interest is payable, make the entry to record the redemption. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer:
Dr Bonds payable 1,600,000
Dr Loss on redemption of bonds 36,800
Cr Cash 1,632,000
Cr Discount on bonds payable 4,800
Explanation:
Loss/gain on redemption of bonds = carrying value - cash paid = ($1,600,000 - $4,800) - $1,632,000 = $1,595,200 - $1,632,000 = -$36,800 loss