Answer:
The answer is:
Asset will be overstated
Net income will be overstated
Explanation:
Because of the incorrect capitalization(the process of converting or adding to a firm's asset):
1. Assets are overstated. Assets that shouldn't are added to the entire assets are added. So it's increasing the company's asset whereas it's not.
2. Net income are overstated. Because depreciation too will have to be charged for the asset that wasn't there, therefore, net asset will be overstated.
Answer: a) increases expenses and lowers taxes.
Explanation:
Depreciation accounts for the wear and tear in fixed assets over their period of use. It is accounted for every period in the Income Statement as an expense which means that its addition increases the business's expenses.
It does that the advantage of being tax deductible however. This then means that it can be subtracted from Net Income for tax purposes. When that is done, it will reduce the Net Income thereby reducing the amount of taxes that can be charged on the company.
The amount that Cere should report as income tax expense is $84,000.
Income tax expense refers to the amount of taxes owed by a person to the taxing authority.
- The Formula for Income tax expense is Taxable income * Effective tax rate.
<u>Given Information</u>
Taxable income = $280,000
Effective Tax rate = 30%
Income tax expense = $280,000 * 30%
Income tax expense = $84,000
Therefore, the amount that Cere should report as income tax expense is $84,000.
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Answer:
Amount after 12 year will be $30762.16
Explanation:
We have given amount invested = $15000
Rate of interest r = 6 %
Time t = 12 years
As investment is compounded daily
So rate of interest
%
As 1 year = 365 days
So 12 year = 12×365 = 4380 days
We know that future value is given by

So
$
So amount after 12 year will be $30762.16