Nia is editing a row in an Access table. The row contains the Pencil icon on the left end of the record. What does

Assume that Firm ABC has revenues of $120,000 for both 2017 and 2018. It also has operating expenses of $40,000 for each of thes

ivolga24 [154]

Answer:

1) deferred tax asset = 4000

2) deffered tax Liability = 4000

Explanation:

1) Journalizing entry at 12/31/2017

deferred tax asset = tax ( per income tax) - tax ( per book tax )

= 32000 - 28000 = 4000

J<u>ournal Entry made for Income tax and deferred tax asset) </u>

Account Debit Credit

Income Tax Expense 28000

Deffered Tax Asset 4000

Income Tax Payable 32000

2) Journalizing entry at 12/31/2018

Deffered tax Liability = Tax (per book) - Tax ( Income tax )

deffered tax Liability = 32000 - 28000 = 4000

<u>Journal Entry made for Income tax and deffered tax liability</u>

Account Debit Credit

Income Tax Expense 32000

To Deffered Tax Liability 4000

To Income Tax Payable 28000

3 0

3 years ago

Preferred stock is a hybrid security because it has some characteristics typical of debt and others typical of equity. The follo

jonny [76]

Answer:

Dividends are fixed. ⇒ Consistent with Debt

Fixed dividends makes preferred shares consistent with debt because debt repayments are made in equal payments as well.

Usually has no specified maturity date ⇒ Consistent with Equity.

Equity has no set maturity date unlike debt and preferred stock has no maturity date either so is much like equity in this regard.

Cost of preferred stock.

Preferred stock is like a perpetuity. The cost of preferred stock is therefore:

= Constant dividend / Price of stock

= 13 / 130.45

= 9.97%

= 10%

8 0

3 years ago

The production possibilities curve is bowed out (curve) because

Korolek [52]

Answer:

as the price of a good increases,the quantity supplied decreases

7 0

2 years ago

Read 2 more answers

A bond has a $1,000 face value, a market price of $989, and pays interest payments of $69.50 every year. What is the coupon rate

____ [38]

Answer:

6.95

Explanation:

Coupon rate = $69.50/$1,000 = .0695, or 6.95 percent

4 0

2 years ago

A delivery truck costing $25,000 is expected to have a $1,500 salvage value at the end of its useful life of four years or 125,0

Helga [31]

Answer:

a.

Depreciation expense year 2 Straight line = $5875

b.

Depreciation expense year 2 Double declining = $6250

c.

Depreciation expense year 2 units of activity = $5264

Explanation:

a.

Straight line method is a depreciation method that charges a constant depreciation expense through out the useful life of the asset. Straight line depreciation per year is,

Straight line depreciation = (Cost - Salvage value) / Estimated useful life

Straight line depreciation = (25000 - 1500) / 4 = $5875 per year

Straight line rate = 100% / 4 = 25%

b.

Double declining balance is an accelerated method of depreciation that charges more depreciation in the initial years and less in later years. Double declining balance depreciation is calculated as follows,

Depreciation expense = 2 * Straight line rate * Book value at start of the period

Depreciation expense year 1 = 2 * 0.25 * 25000 = $12500

Book value at start of year 2 = 25000 - 12500 = $12500

Depreciation year 2 = 2 * 0.25 * 12500 = $6250

c.

The units of production method charges depreciation based on the activity for which asset is used as a proportion of the estimated useful life in terms of activity.

Depreciation expense year 2 = (28000 / 125000) * (25000 - 1500)

Depreciation expense year 2 = $5264

7 0

3 years ago