Answer:
The answer is: Stone can report $8,750 as deferred income tax liability
Explanation:
Deferred income tax liability: income tax owed by a business that is put off into future years because a difference exists between GAAP accounting (in this case book depreciation) and income tax accounting.
The deferred tax liability is based on the difference on depreciation. Since 20x9 is Stone Co.'s first year of operations, the depreciation difference in this year must equal the net future depreciation difference.
To calculate the deferred tax liability balance we take the difference in depreciation and multiply it by the future tax rate: $25,000 x 35% = $8,750.
Answer:
d
Explanation:
the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.
Answer: (C) Zanda will have higher inventory carrying costs.
Explanation:
The inventory carrying cost is one of the type of overall holding inventory cost that helps in identifying the various types of business expenses and also storing the various types of unsold goods and the services in the market.
The inventory carrying cost is also known as the holding cost and it is basically responsible for handling the cost system by using the estimated formula.
According to the given question, Zanda corporation is basically using the level production plan for the purpose identifying their business factors such as costs, demand and the products.
So, based on the given information is Zanda will have the high inventory carrying cost statement is true. Therefore, Option (C) is correct answer.
