Answer:
Under variable costing, the company's net operating income for the year would be $60,000 lower than under absorption costing.
Explanation:
The computation of the operating income under variable costing is shown below:
But before that following calculations need to be done
Fixed manufacturing overhead per unit is
= $240,000 ÷ 20,000 units
= $12 per unit
Ending Inventory units is
= 20,000 units - 15,000 units
= 5,000 units
Now Cost of ending Inventory deferred under absorption costing is
= 5,000 units × $12
= $60,000
So, the second option is correct
Answer:
ohh high school and College the same the nhi hai to hm likh I have been
Explanation:
- what is the best ear and sir I am a student of class of the week after next year compared to the raone to hm likh I have been a long way to go in and out the form below to delete this the nun the h ki thi ki nahi
Answer:
I), II), IV)
Explanation:
Deferral has a dictionary meaning of halting things for a while up till a certain future event.
Deferral of capital gains tax means not paying the capital gains tax up till the actual sales is made of investments attracting the capital gains tax.
It further helps the investor to focus on returns rather than the capital gains tax to be attracted and paid, which also allows the investment to grow fully.
It is a form of tax benefit to investors thus, it acts as a shelter.
Further, in no terms deferral of capital gains tax shall mean non payment of tax, as once the investment is sold the tax has to be deposited.
Transactions will be recorded as follows;
<u>March 1</u>
Debit Cash $21,000
Credit Common Stock $21,000
<u>March 5</u>
Debit Cash $9,000
Credit Notes Payable $9,000
<u>March 10</u>
Debit Construction Equipment $25,000
Credit Cash $25,000
<u>March 15</u>
Debit Advertising Expense $1,100
Credit Cash $1,100
<u>March 22</u>
Debit Accounts Receivable $18,000
Credit Service Revenue $18,000
<u>March 27</u>
Debit Cash $13,000
Credit Accounts Receivable $13,000
<u>March 28</u>
Debit Salaries Expense $6,000
Credit Cash $6,000
<u></u>
