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Natalka [10]
3 years ago
10

O'Neill, Incorporated's income statement for the most recent month is given below. The marketing department believes that a prom

otional campaign at Store A costing $5,000 will increase sales by $15,000. If its plan is adopted, overall company net operating income should: Select one: a. decrease by $800 b. decrease by $5,800 c. increase by $5,800 d. increase by $10,000

Business
1 answer:
Nesterboy [21]3 years ago
8 0

Answer:

$1,800

Explanation:

Here Decrease or increase can be calculated as under:

Increase in Revenue                                                           $15,000

Increase in Variable Cost (72k / 100k * $15,000)             ($10,800)

Increase in Promotional Cost                                           <u>  ($6,000)  </u>

Net Operating Income Decrease                                        ($1,800)

Hence the decrease in Net Operating Income would be by $1,800.

Note: As the complete question is not provided and is not found online, almost similar question was picked from the internet. So make sure you account for of the differences.

The Numerical section of the question is given as under:

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Star Corp. reported pretax net income from continuing operations of $1,000,000. Tax depreciation exceeded book depreciation by $
anastassius [24]

Answer:

Star Corp

A.

Pretax net income from continuing operations = $1,000,000

Add Accrued Vacation $50,000

Deduct additional Tax Depreciation $100,000

Deduct Dividend received deductions $150,000

Net Taxable Income = $800,000

Income Tax expenses = 21% x $800,000 = $168,000

Income tax Expense provision based on book Net income = 21% x $1,000,000 = $210,000

Income tax benefit = $168,000 minus $210,000 = $42,000 (benefit)

B.

Deferred income tax expense =

Income tax Provision = $210,000

Less income tax expense = $168,000

Differed income tax (benefit) = $42,000

C.

Reconciliation

Book Net income = $1,000,000

Tax rate = 21%

Tax expense provision = $210,000...(a)

Pretax net income from continuing operations = $1,000,000

Add Accrued Vacation $50,000

Deduct additional Tax Depreciation $100,000

Deduct Dividend received deductions $150,000

Taxable Net income (adjusted) = $800,000

Tax rate = 21%

Tax expense provision = $168,000......(b)

Difference (a) minus (b) = $42,000 . This is a benefit to the firm (star corp) because its actual tax liability is less than what it provided for because of net deductibles not accounted for in its income statement.

5 0
3 years ago
Tweedie Company issues 11,500 shares of restricted stock to its CFO, Mary Tokar, on January 1, 2014. The stock has a fair value
DENIUS [597]

Answer:

The journal entries are as follows:

(a) (i) on January 1, 2014

Unearned compensation A/c Dr. $5,75,000

       To Common stock (11,500 × 10)                $115,000                              

       To Paid-in Capital in Excess of Par - Common Stock $4,60,000

(ii) On December 31, 2015

compensation expenses A/c(575,000 × 1/5) Dr. $1,15,000

       To Unearned compensation                $1,15,000

(To record the restricted stock)

(b) On July 25, 2018,

common stock A/c Dr. $1,15,000

Paid-in Capital in Excess of Par - Common Stock A/c Dr. $4,60,000

     To compensation expenses  $4,60,000

     To unearned compensation   $1,15,000

(To record the forfeiture)

8 0
3 years ago
The many uses of oxiclean products are shown in a program-length television commercial. this is a(n) _____ form of advertising.
svetlana [45]

Answer:

Infomercial.

Explanation:

An infomercial is a form of advertisement which is aimed at educating the customer about a product or a series of products via television in the form of a program.

7 0
3 years ago
Coca-Cola has supported numerous health and sporting cause, but to what extent is this genuine CSR.
svetoff [14.1K]

Answer:

Considerable extent

Explanation:

Note that CSR (Corporate social responsibility) entails that an organization gives back to its community or environment in which it operates in areas such as financing community developmental projects, providing employment etc.

Coca-Cola, therefore, has done what CSR entails although it could still do more by reducing the environmental pollution coming from its factories, reducing the calories found in its drinks etc.

5 0
3 years ago
Esther will be helping Heather with her firm's billing but heather doesn't want Esther to have access to her firm's settings or
mezya [45]

The correct settings of the Quickbook is illustrated in C.

QuickBooks is an accounting software that's used by businesses for payments, payroll functions, etc.

From the information given, Heather doesn't want Esther to have access to her firm's settings or her clients' Quickbooks Online companies, therefore the best option will be to set the access to custom.

By setting the access to custom, Esther won't be able to have access to the settings. On the other hand, if the access was set to basic just like in the second option, Esther will have access. Also, it's important to set <u><em>"manage your clients</em></u>" to No when Esther will be in charge.

Read related link on:

brainly.com/question/25051354

4 0
2 years ago
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