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Usimov [2.4K]
1 year ago
6

Wallis company produces circuit boards in a foreign country that imposes a 15 percent vat. This year, wallis manufactured 8. 3 m

illion boards at a $5 material cost per unit. Wallis’s labor and overhead added $1 to the cost per unit. Wallis sold the boards to various customers for $7. 50 per unit for a net profit of $1. 50 per unit
Business
1 answer:
sdas [7]1 year ago
8 0

Wallis company owes a VAT of $9,337,500

The given question is about finding out VAT.

Wallis Company had manufactured 8. 3 million boards.

Therefore,

The quantity sold = 8.3 million = 8,300,000

The labor and overhead added $1 to the cost per unit. Whereas the net profit is $7. 50 per unit for a net profit of $1. 50 per unit.

Total Sales Value= Sales Quantity x Selling price per unit

= 8,300,000 x 7.50

= 62,250,000

Finding out the amount of VAT ( Being the Vat% imposed as 15%)

VAT amount = Sales value x VAT Rate

= 62,250,000 x 15%

= 62,250,000 x 15/100

= 62,2500 x 15

= 9,337,500

Wallis company owes a VAT of $9,337,500

Read more about VAT on:

brainly.com/question/28295269

#SPJ4

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strojnjashka [21]

Answer:

$1,138.92

Explanation:

Current bond price can be calculated present value (PV) of cash flows formula below:

Current price or PV of bond = C{[1 - (1 + i)^-n] ÷ i} + {M × (1 + i)^-n} ...... (1)

Where:

Face value = $1,000

r = coupon rate = 7.2% annually = (7.2% ÷ 2) semiannually = 3.6% semiannually

C = Amount of semiannual interest payment = Face value × r

C = $1,000 × 3.6% = $36

n = number of payment periods remaining = (12 - 1) × 2 = 22

i = YTM = 5.5% annually = (5.5% ÷ 2) semiannually = 2.75% semiannually  = 0.0275 semiannually

M = value at maturity = face value = $1,000

Substituting the values into equation (1), we have:

PV of bond = 36{[1 - (1 + 0.0275)^-22] ÷ 0.0275} + {1,000 × (1 + 0.0275)^-22}

PV of bond = $1,138.92.

Therefore, the current bond price is $1,138.92.

4 0
3 years ago
"Ayres Services acquired an asset for $80 million in 2021. The asset is depreciated for financial reporting purposes over four y
Zepler [3.9K]

a. The cumulative temporary book-tax difference for the depreciable asset are as follows:

December 31, 2021 = $60 million

December 31, 2022 = $40 million

December 31, 2023 = $20 million

December 31, 2024 = $0

b. The balance to be reported in the deferred tax liability account are as follows.

December 31, 2021 = $15 million

December 31, 2022 = $10 million

December 31, 2023 = $5 million

December 31, 2024 = $0

Explanation:

Note: See the attached excel file for the calculation of cumulative temporary book-tax difference for the depreciable asset and the balance to be reported in the deferred tax liability account for December 31 of years 2021, 2022, 2023 and 2024 in bold red color.

In the attached excel file, the following formula are used:

Cumulative Temporary differences at December 31 of the current year = Cumulative Temporary differences at December 31 of the previous year + (Depreciation on the tax return at December 31 of the current year - Depreciation on the income statement at December 31 of the current year)

Balance to be reported in deferred tax liability account at December 31 of the current year = Cumulative Temporary differences at December 31 of the current year * Tax rate

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3 years ago
On January 1, Company A leased equipment for a six-year period. Annual lease payments are $12,000 due on December 31 of each yea
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Answer:

Dr Right of use asset 59,007.60

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Explanation:

Variable lease payments are generally not included as right of use asset or lease liability. Even though a 60% possibility exists that an additional $5,000 will be paid, they are not based on an index and are not disguised payments (only two exceptions to this rule).

Annual lease payments = $12,000

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PV of lease payments = $12,000 x 4.9173 = $59,007.60

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Fynjy0 [20]

Answer:

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