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VashaNatasha [74]
3 years ago
13

Ketchem Corp., a cash basis taxpayer, and Catcham Corp., an accrual basis taxpayer, are parent-subsidiary corporations. In Janua

ry-November of year 1, Ketchem sold $50,000 of supplies to Catcham, which Catcham paid for on a 1/20 net 30 basis, always paying on Day 20. On December 27 of year 1, Ketchem 's December sale of supplies to Catcham, Ketchem 's taxable income is $600,000 and Catcham's is $120,000. How much taxable income should Ketchem and Catcham report on the year 1 consolidated tax return?
a. $720,000
b. $770,000
c. $74,000
d. $710,000
Business
1 answer:
Softa [21]3 years ago
7 0

Answer: B. $770,000

Explanation:

The taxable income that they would report on the consolidate tax return would be $770,000 ($600,000 + $120,000 + $50,000)

The reason why we have added $50,000 is because the Ketchem sold $50,000 worth of supplies to Catcham and Catcham were able to pay that amount within 20 days. That is in the month of November.

Also, the consolidated report is to be made after December 27, therefore, we will include this transaction as it was before 27th December.

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Sherry owns a car business. She just received a shipment of Volkswagen SUVs. She paid $60,000 for each vehicle and wants to make
densk [106]

The selling price of the price that is offered to the buyer of the goods. The selling price of the car should be $<u><em>75,000</em></u>.

<h3>What is the selling price?</h3>

The selling price is the ultimate value of the goods the seller is willing to offer to the buyer at the time of sale. It is determined by adding up the profit margin to the actual cost of the goods.

The computation of the selling price of the car:

Given,

  • Cost price =$60,000
  • Margin =25%

\begin{aligned}\text{Selling Price}&=\text{Cost Price}+\text{Margin}\\&=\$60,000+(\$60,000\times25\%)\\&=\$60,000+\$15,000\\&=\$75,000\end{aligned}

Therefore, if Sherry wants to make 25% on the sale of each car then the car must be sold at $75,000 each.

Learn more about selling price, here:

brainly.com/question/3798799

5 0
2 years ago
The purpose of determining the critical path on a pert network is to: identify the sequence of tasks that takes the longest to c
natita [175]

Answer:

Identify the sequence of tasks that take the longest to complete

Explanation:

Program Evaluation and Review Technique (PERT) is a project management tool that is used to manage potential contingencies in the process of executing a project. It is used to schedule ,organize and coordinate tasks in a project.

Determining the critical path on a PERT network lists out the time required for different tasks to be completed and as a result , the sequence of tasks that require the longest time are identified.

3 0
3 years ago
Read 2 more answers
Dudley Transport Company divides its operations into four divisions. A recent income statement for its West Division follows. DU
Ghella [55]

Answer:

Companywide income would increase by $6,000 if West Division is eliminated.

Explanation:

The amount by which the companywide income will increase or decrease if West Division is eliminated can be determined by comparing Revenue with avoidable cost.

Avoidable cost refers to the cost that will be eliminated or not incurred if a firm decides to change the course of a business.

In this question, avoidable cost is simply the cost or expenses that will be eliminated if West Division is eliminated.

Among all the expenses in the question, only Companywide facility-sustaining costs which is $78,000 cannot be eliminated if West Division is eliminated.

Therefore, avoidable cost can be calculated as follows:

Avoidable cost = Salaries for drivers + Fuel expenses + Insurance + Division-level facility-sustaining costs = 210,000 + 30,000 + 42,000 + 24,000 = $306,000

Since, Revenue = $300,000

Decision rule:

1. If revenue is greater than avoidable cost, we have a decrease in income. Therefore, the division should not be eliminated.

2. If revenue is less than avoidable cost, we have an increase in income. Therefore, the division should be eliminated.

Since the revenue of $300,000 is less than the avoidable cost of $306,000, it implies we have an increase in income based on the decision rule 2. The increase in income is calculated as follows:

Increase in income if West Division is eliminated = Avoidable cost – Revenue = $306,000 - $300,000 = $6,000

Therefore, companywide income would increase by $6,000 if West Division is eliminated

Since there would be an increase in income of $6,000, West Division should therefore be eliminated.

4 0
3 years ago
Which of the following is not a major influence on business buyer behavior? individual factors organizational factors environmen
Shtirlitz [24]

Answer:

procurement factors

Explanation:

A consumers buyer behavior is influenced by four major factors; cultural, social, personal, and psychological factors. These factors cause consumers to develop product and brand preferences

Procurement is used to ensure the buyer receives goods, services, or works at the best possible price when aspects such as quality, quantity, time, and location are compared. Almost all purchasing decisions include factors such as delivery and handling, marginal benefit, and price fluctuations

4 0
3 years ago
Read 2 more answers
The major activities of the Planning Section include:
scZoUnD [109]
The answer to the question stated above is letter A.

.The major activities of the Planning Section include: Preparing and documenting Incident Action Plans.
ADDITIONAL INFORMATION ABOUT PLANNING SECTION
>Planning section includes the following major activities:
<span>         -Collect, evaluate, and display incident intelligence and information.
         -Prepare and document Incident Action Plans.
         -Track resources assigned to the incident.
         -Maintain incident documentation.
<span>         -Develop plans for demobilization.</span></span>
4 0
3 years ago
Read 2 more answers
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