In 3–5 sentences, describe how you would create a graph.

James McDowell Co. establishes a $102,000,000 liability at the end of 2020 for the estimated site-cleanup costs at two of its ma

grin007 [14]

Answer:

Task a:

Deferred tax asset = $40,800,000

Deferred tax liability = $20,400,000

Task b:

Indicate how the deferred taxes computed in (a) are to be reported on the balance sheet.

Note: Please see the attachments for the balance sheet*

Task c:

Assuming that the only deferred tax account at the beginning of 2017 was a deferred tax liability of $10,000,000, draft the income tax expense portion of the income statement for 2017, beginning with the line "Income before income taxes."

Please see the attachments for the Income statement*

Explanation:

Determine the deferred taxes to be reported at the end of 2017.

Deferred tax asset

Deferred tax asset = $102,000,000 × 40%

Deferred tax asset = $40,800,000 (answer)

Deferred tax liability

Deferred tax liability = $51,000,000 × 40%

Deferred tax liability = $20,400,000 (answer)

Indicate how the deferred taxes computed in (a) are to be reported on the balance sheet.

<h2>Explanation:</h2>

Deferred tax asset

When income tax expense is smaller than income tax payable as a result of deducting any non-cash expenses in accounting books, some income tax expense is deferred to the future.
The larger income tax payable on tax returns creates a deferred tax asset, which companies can use to pay for deferred income tax expense in the future.
Deferred tax assets may be presented as current assets if a temporary difference between accounting income and taxable income is reconciled the following year.

Deferred tax liability

When income tax expense is greater than income tax payable as a result of no recognition of any noncash revenues in tax returns, some income payable is deferred to the future.
The smaller income tax payable on tax returns creates a deferred tax liability, which companies must meet by paying any deferred income tax payable in the future.
Deferred liabilities may be presented as current liabilities if a temporary difference between accounting income and taxable income is reconciled the following year.

Note: The balance sheet extract is attached:

Assuming that the only deferred tax account at the beginning of 2017 was a deferred tax liability of $10,000,000, draft the income tax expense portion of the income statement for 2017, beginning with the line "Income before income taxes."

Note: The income statement extract is attached:

Note: The relevant working also attached

4 0

3 years ago

The Macaulay convexity of a single cash flow is 64 at an annual effective interest rate of 10%. Calculate the modified duration

garri49 [273]

Answer:

A 7.3

Explanation:

Macaulay Convexity = 64, as about a single cash flow

Since it is a single cash flows, convexity is square the Macaulay duration of the bond.

Convexity = √Macaulay duration.

So, Macaulay duration = Convexity^(1/2)

Macaulay duration = Convexity^(0.5)

Macaulay duration = 64^0.5

Macaulay duration = 8

So, the Macaulay duration = 8 years

Now, Modified duration = Macaulay duration/(1+yield)

Modified duration = 8/(1+0.1)

Modified duration = 8/1.1

Modified duration = 7.27273

Modified duration = 7.3 years

5 0

4 years ago

Budgeted sales in Acer Corporation over the next four months are given below: September October November December Budgeted sales

katovenus [111]

Answer:

c. $161,400

Explanation:

The computation of the cash collections for December month is shown below:

Cash sales

= $160,000 × 30%

= $48,000

Credit sales

For same month = $160,000 × 50% × 70% = $56,000

For one month = $180,000 × 30% × 70% = $37,800

For second month = $140,000 × 20% × 70% = $19,600

So, the total cash collections is

= $48,000 + $56,000 + $37,800 + $19,600

= $161,400

4 0

4 years ago

Horace is trying to start a business. He knows several accredited investors who he knows will help him jumpstart his business. W

Nata [24]

Answer:

Investors may invest a combined $50 million within a 12-month period.

Explanation:

According to the section, there are two pricing rates in Regulation A In the 1st Tier, for offering upto $20 million over a 12-month span and another 2nd Tier, for offerings upto $50 million over a 12-month period.

Therefore, as per the given situation the right answer is Investors are permitted to invest a combined $50 million over a 12-month period.

6 0

4 years ago

__________ implements a security policy that specifies who or what may have access to each specific system resource and the type

8090 [49]

Answer:

D. Access control

Explanation:

Access control implements a security policy that specifies who or what may have access to each specific system resource and the type of access that is permitted in each instance.

A typical example of this is in ERPs where access controls defines what access codes a process owner has and what access a reviewer and an approval has. Where a personnel has access to carry out a transaction, review and approve the transaction, access controls are said to be deficient.

The right answer is D. Access control.

4 0

4 years ago