1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
valina [46]
2 years ago
15

Madison Corporation reported taxable income of $400,000 in 20 X 3 and accrued federal income taxes of $136,000. Included in the

computation of taxable income was regular depreciation of $200,000 (E&P depreciation is $60,000) and a net capital loss carryover of $20,000 from 20X2 utilized in 20X3. The corporation's current earnings and profits for 20X3 would be:
A. $424,000B. $404,000C. $380,000D. $344,000
Business
1 answer:
salantis [7]2 years ago
8 0

Answer:

A. $424,000

Explanation:

current income = Taxable income - Federal tax + Depreciation disallowed + net capital loss carryover          

= $400,000 - $136,000 +  ($200,000 - $60,000) + $20,000

=  $424000

Therefore, The corporation's current earnings and profits for 20X3 would be $424000.

You might be interested in
Karla Salons leased equipment from Smith Co. on July 1, 2021, in a finance lease. The present value of the lease payments discou
photoshop1234 [79]

Answer:

d. $5,204

Explanation:

Interest expenses up to December 31, 2020 = (Total present value of lease payment - Lease payment on July 2021) * 8% * 6/12

= $61,600 - $8,500 * 8% * 6/12

= $53,100 * 8% * 6/12

= $2,124

Depreciation Expenses up to December 31, 2021

= Fair value of equipment / Useful life * 6/12

= ($61,600 / 10) *6/12

= $6,160 * 6/12

= $3,080

Therefore, the total decrease in earnings (Pretax) in Larlas December 31, 2021 Income statement would be

= Interest expenses + Depreciation Expenses

= $2,124 + $3,080

= $5,204

3 0
3 years ago
A firm is evaluating a proposal which has an initial investment of $50,000 and has cash flows of $15,000 per year for five years
Harlamova29_29 [7]

Answer:

3 1/3 years

Explanation:

Payback period is the time required for the inflows from a project to be equal to the initial outflow for the project. It is a key consideration in capital budgeting. It is usually assumed that the outlay or initial outflow is made in year 0 and the first inflow comes in after a year.

Year       Cash outflow      Cash inflow           Balance

0                ($50,000)                   -                ($50,000)

1                         -                   $15,000           ($35,000)

2                        -                    $15,000          ($20,000)

3                        -                    $15,000           ($5,000)

4                      -                      $15,000           $10,000

5                       -                    $15,000            $25,000

Hence the payback period

= 3 years and 5000/15000 * 12 months

= 3 years 4 months

= 3 1/3 years

3 0
3 years ago
Elevators, Inc. does considerable business overseas for high-rise luxury hotels. To speed up the building permit process, it aut
AleksAgata [21]

Answer:

No, Elevators, Inc. has not broken the law because payment was made in United States currency.

Explanation:

It operates a substantial business abroad for high-end luxury hotels. It authorized a project manager to "charge" a government official a charge of 500 for speeding up the building permit process. so

  • Under the law, it is illegal to bribe foreign officials to get business. But there is an exception to "facilitation payments", also known as grease payments made to speed up general government functions.
  • Flexible payments can be used to persuade government officials to perform work that is already being done. Although many have argued that such payments are important for their operations in some areas, such as Asia and Africa, the difference between facility payment and bribery remains unclear.

3 0
3 years ago
Is president trump better than all the other presidents
tresset_1 [31]
Yes and no, if you are of United States yes, if not No
5 0
2 years ago
Read 2 more answers
DVDs can be produced at a constant marginal cost, and Roaring Lion Studios is releasing the DVDs for its last two major films. T
Elena L [17]

Answer:

B) MC = $15

Explanation:

Base on the scenario been described in the question, the marginal cost (MC) is calculated using the following formula

To calculate marginal cost, divide the difference in total cost by the difference in output between 2 systems.

MC = 30-17/20-17

MC = $15

5 0
3 years ago
Other questions:
  • "When a business establishes a web-site and begins to allow customers to" place orders online without ever coming into their sto
    7·1 answer
  • Which expert created a pyramid of people's basic needs? A. Douglas McGregor B. Abraham Maslow C. Frederick Herzberg D. Clayton A
    7·1 answer
  • What is the major source of revenue for most state governments?
    8·2 answers
  • Discuss social responsibility and ethics?<br><br>​
    7·1 answer
  • Giles lives in a society where people are expected to solve their own problems. During business meetings, leaders do not waste t
    13·1 answer
  • During the second quarter of the year, Wallace Enterprises received $30,000 from customers in exchange for providing electronic
    15·1 answer
  • The policy at Sunland Company is to expense all office supplies at the time of purchase. On the last day of the accounting perio
    12·1 answer
  • In supermarket retailing, _____ percent of endcaps should be unadvertised "sale" items that will cause the customer to be alert
    9·1 answer
  • Which of the following is the best example of an ethical statement?
    11·1 answer
  • What is the fifth principle of money?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!