Answer:
Research and Development
Explanation:
Research and Development department is responsible for the new product development and any kind of modifications in the products. This department is responsible for investigation done by the organisation to improve the existing products and developing of new related products. Nowadays companies are more amounts for Research and Development, then only the organisation can survive in the market. The department aims to make new ideas, information and technology that improves the products effectiveness.
Answer: <em>Amount of budgeted income tax expense = $10,668</em>
Explanation:
Given:
Sales = $118,800
COGS = $48,500
Depreciation expense = $1,500
Interest expense = $250
Other expenses = $41,880
We'll compute the amount of budgeted income tax expense using the following formula:
Amount of budgeted income tax expense = 40% of (Sales - COGS - Depreciation expense - Interest expense - Other expenses)
= $118,800 - $48,500 - $1,500 - $250 - $41,880
= 40% x $26,670
= $10,668
Pretty sure it’s product line
Answer:
Murphy Company
The year in which Murphy recognizes the income is year 2.
Explanation:
As a cash basis taxpayer, Murphy Company reports income and deductions in the year that they are actually paid or received. Similarly, as a cash basis taxpayer, Murphy Company deducts expenses in the year the expenses are paid off, which is not necessarily the year they were incurred. The income for services of $9,000 rendered to a customer, for which payment was received on January 3, year 2, will be recognized in year 2 and not in year 1 when the services were performed.
