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miss Akunina [59]
3 years ago
14

An account related with another account on the financial statements that 1) directly reduces the related account and 2) has an o

pposite normal balance than the related account, is a(n) Multiple Choice Permanent account Temporary account Contra account.
Business
1 answer:
VLD [36.1K]3 years ago
6 0

Answer:

Contra account.

Explanation:

A contra account is an account that has an opposite of what is the normal balance for the class of such an account. a company would be able to report the original amount and in so doing also be able to report the reduction and then what is the net amount would be reported. in other words such an account is used to reduce the value of another related account. And thereafter the net value is what is going to be reported.

You might be interested in
How is the noncontrolling interest in a subsidiary company calculated as of the end of a reporting period?
ANEK [815]

The noncontrolling interest in a subsidiary company is calculated at the end of a reporting period by multiplying the subsidiaries’ net income by the noncontrolling interest percentage.

A noncontrolling interest (NCI), or a minority interest, is a situation in which the shareholders own less than 50% of the outstanding shares and thus have no say in the decision-making process.

At the end of a reporting period, the NCI is calculated by taking the NCI percentage and multiplying it with the net income of the subsidiary.  For example, if a minority partner owns 30%  in the subsidiary, and the subsidiary’s net income is $ 2 million, the NCI will be $ 2 million multiplied by 30%, which is $600,000.

To learn more about noncontrolling interest (NCI): brainly.com/question/13635396

#SPJ4

7 0
2 years ago
Compute the Cost of Goods Sold for 2016 using the following information:Direct Materials, Jan. 1, 2016 $40,000Work-in-Process, D
guapka [62]

Answer:

Cost of Goods Sold = $234,000

Option B is correct ($234,000)

Explanation:

First we will calculate total direct material used in production:

Total Direct material=Starting Direct Material+ Purchases of Direct Material+ Ending Direct material

Total Direct material=$40,000+$75,000-$43,000

Total Direct material=$72,000

Calculating Cost of goods Manufactured:

Cost of goods Manufactured=Total Direct material+Direct labor+ Manufacturing Overhead+Beginning WIP inventory-Ending WIP inventory

Cost of goods Manufactured=$72,000+$48,500+$72,500+$87,000-$69,000

Cost of goods Manufactured=$211,000

Cost of Goods Sold = Cost of goods Manufactured+ Starting Finished Goods-Ending Finished Goods

Cost of Goods Sold = $211,000+$128,000-$105,000

Cost of Goods Sold = $234,000

Option B is correct ($234,000)

6 0
3 years ago
Consider the case of Demed Inc.: Demed Inc. has 9% annual coupon bonds that are callable and have 18 years left until maturity.
solong [7]

Answer:

A) YTM = 7.64%

B) YTC = 7.36%

C) 8 years

D )   7.64%

Explanation:

Annual coupon bond rate = 9%

number of year left until maturity = 18

par value of Bonds( FV ) = $1000

current market price( PV ) = $1130.35

Demed can call bonds in 8 years at a call price of $1060

A) what is the Bonds' YTM  ( yield to maturity )

we calculate the interest per period ( PMT )

= ( Fv * Annual coupon bond rate) / number of compounding per year

= (1000 * 9% ) / 1 = $90

next we calculate number of compounding periods till maturity ( NPER )

= number of years to maturity * number of compounding per year

= 18 * 1 =  18

using excel formula = RATE ( NPER,PMT,PV,FV) )

hence yield to maturity = 7.64%

B) what is YTC ( yield to call )

we calculate the interest per period ( PMT )

= $1000 * ( coupon rate / number of compounding per year )

= $1000 * ( 9% / 1 )  = $90

 next we calculate the number of compounding periods till sell

= 8 * 1 = 8

using excel formula = RATE ( NPER,PMT,PV,FV) )

Hence the YTC = 7.36%

C) Bonds will be called at 8 years and this is because the YTC is less than YTM

D )   The coupon rate for the bonds to be issued  at par,  is  7.64%

6 0
3 years ago
Income from installment sales of properties included in pretax accounting income in 2021 exceeded that reported for tax purposes
nadya68 [22]

Answer:

1. Taxable income = $76 million

2.  Net income = $65.25 million

3-a. Net current Deferred Tax Asset = $1.95 million

3-b. Net current Deferred Tax Liability = $6.25 million

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf file for the complete question.

The explanation of the answers I now provided as follows:

1. Determine the amounts necessary to record income taxes for 2021, and prepare the appropriate journal entry.

1-a. Note: See the attached excel file for the determination of the amounts necessary to record income taxes for 2021 and the taxable income.

From the attached excel file, we have:

Taxable income = $76 million

1-b. The journal entries will look as follows:

<u>Details                                                       Debit ($'m)             Credit ($'m)     </u>

Tax expense (6.75 + 19 - 3)                           22.75

Deferred tax asset (25% * (1 + 13 - 2))             3.00

Deferred tax liability (25% * (7 + 20))                                              6.75

Tax payable (25% * 76)                                                                   19.00

<u><em>(To record tax expense.)                                                                                 </em></u>

2. What is the 2021 net income?

This can be determined as follows:

Net income = Pretax accounting income - Tax expense = $88 million - $ 22.75 million = $65.25 million

3. Show how any deferred tax amounts should be classified and reported in the 2021 balance sheet.

3-a. The deferred tax amounts should be classified as follows.

From installment receivable in point (a) in the question:

Current deferred tax liability in 2022 (25%* ($4  / 2)) = $1

Noncurrent deferred tax liability in 2023 (25%* ($4 / 2)) = $1

From the depreciation in point (c.) in the question:

Noncurrent deferred tax liability (25%* ((24 + 24) - (14 + 7))) = $6.75

From the Warranty Expense/Payable in point (d.) of the question:

Current deferred tax asset (40%* 3) = $1.20

From the Acrrued Expense/Payable in point (e.) of the question:

Current deferred tax asset (25%* 7) = $1.75

Noncurrent deferred tax liability (25% * $6) = $1.50

3-b. These will be reported reported in the 2021 balance sheet as follows:

Sherrod, Inc.,

Balance Sheet (Partial)

As the Year Ended 31 December, 2021

<u>Details                                                                         $'Million    </u>

<u>Assets:</u>

Current Deferred Tax Asset (1.20 + 1.75)                      2.95

Current Deferred Tax Liability                                     <u> -1.00  </u>

Net current Deferred Tax Asset                                <u>   1.95  </u>

<u>Liabilities:</u>

Noncurrent Deferred Tax Asset (A)                              1.50

Noncurrent Deferred Tax Liabiity (1.0 + 6.75) (B)      <u>   7.75  </u>

Net current Deferred Tax Liability (C = B - A)       <u>    6.25   </u>

Download xlsx
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> xlsx </span>
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> pdf </span>
5 0
2 years ago
g Banks advertise Group of answer choices the real interest rate, which is how fast the dollar value of savings grows. the real
Serhud [2]

Answer: The Nominal Interest rate, which is how fast the dollar value of savings grows

Explanation:

Banks advertise the Nominal Interest rate. This is the rate that measures purely, how much return is received or paid if one lends out money or borrows money respectively.

It is therefore the value at which savings grow.

It is not adjusted for inflation yet but when adjusted is called the REAL INTEREST RATE.

It is important to note that when Banks advertise the Nominal rate, it is not yet adjusted for fees or the compounding of interest.

3 0
3 years ago
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