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Dimas [21]
3 years ago
14

Crimson Corp. has a component that is a discontinued operation. The component incurred a loss from operations of $40,000. The co

mponent was sold with an additional loss of $160,000. The tax rate is 30%. What is the income tax effect for the discontinued operation?
Business
1 answer:
zavuch27 [327]3 years ago
6 0

Answer:

$60,000 income tax benefit

Explanation:

Since Crimson Corp. had a loss from operations and sold the asset for a loss we know that they lost money with the asset and an income tax benefit was generated. To calculate the income tax benefit we need to add both losses: $40,000 (operation) + $160,000 (sale) = $200,000 in total losses.

$200,000 x 30% = $60,000 income tax benefit

You might be interested in
A firm have an inventory turnover of 5 times a year on a cost of goods sold of $800 000.if the firm improves the inventory turno
Lunna [17]

Answer:

d) $60,000 is released into working capital

Explanation:

Inventory turnover is the number of times that a firm buys and sells inventory. A high inventory means that the company sells its stock many times in a year.

the formula for inventory turnover ratio

=Cost of goods sold/ average inventory

If a firm has COGS of $800,000 and an inventory turnover of 5, then the average inventory will be

=$800,000 /5

=$160,000

If the firm improves its  turnover to 8, then the average inventory will be

=$800,000/8

=$100,000

The firm average inventory will  $100,000 as opposed to $160,000 previously.

$60,000  will be released to working capital.

3 0
3 years ago
The June 30, 2021, year-end trial balance for Askew company contained the following information: Account Debit Credit Inventory,
34kurt

Answer:

$252,000

Explanation:

Calculation for the cost of goods sold for the Askew Company for the year ending June 30, 2021.

First step is to calculate the Net Purchase

Purchases 259,000

Less Purchase discounts (7,900)

Less Purchase returns (11,900)

Add Freight-in 20,800

Net purchase 260,000

Now let calculate the cost of goods sold

Inventory, 7/1/2020 33,900

Add 260,000

Less inventory balance ($41,900)

Cost of goods sold $252,000

Therefore the cost of goods sold for the Askew Company for the year ending June 30, 2021 will be $252,000

5 0
3 years ago
Jane is an employee of Tyco, Inc. and she is in charge of payroll. Every week she issues a check in the name of a fictitious emp
KengaRu [80]

Answer:

b. Tyco is liable because it authorized Jane to issue payroll checks.

Explanation:

There is the company responsibility to put the right person for the specific job. Here in the given situation Jane would not be a liable person for an vital position of the company. in the case when the fraud done by the employee so the firm would be liable as the company provide the authorization to the person who have to perform that job

Therefore, the option b is correct

4 0
3 years ago
Jeremy Westbrook owns an organic food company which has increased both its profits and revenues over an extended period of time.
valina [46]

People grow in different ways in their business. Jeremy's firm is experiencing Sustained growth.

  • Sustained growth often takes place when a state controls all monetary creation, set up a market-based exchange rate, and handles property rights.

For when a person experienced sustained growth for only a short timeframe, the increase in wealth inequality is likely to be greatest for the fast-growing economies.

The food company has increased steadily in its revenue without additional financial aid, and its growth is sustained.

Learn more from

brainly.com/question/24556402

3 0
2 years ago
A small foundry agrees to pay $220,000 two years from now to a supplier for a given amount of coking coal. The foundry plans to
MaRussiya [10]

Answer:

A) $24,602

Explanation:

We can solve this question by finding the periodic deposits needed by using the formula:

FV=PMT*\frac{(1+i)^n-1}{i}

where:

FV= future value   = $220,000

PMT = periodic deposits required = ???

i = effective  interest rate per period = 0.0331

n= number of deposits = 8

However, since the interest is compounded monthly, let's also  calculate the effective interest rate

Effective interest rate = (1+\frac{r}{m}) ^m-1

where; r = 12.5% = 0.125

(1+\frac{0.125}{12})^{12} -1

= 0.1324

Interest rate per period = \frac{0.1324}{4}

= 0.0331

Then;

220,000=PMT*\frac{(1+0.033)^8-1}{0.033}

220,000 = PMT × 8.986

PMT = \frac{220,000}{8.986}

PMT = $ 24,482.5

Since A) $24,602 is closer to $ 24,482.5

Therefore,  $ $24,602  must be deposited every three months

3 0
3 years ago
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