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alexira [117]
3 years ago
13

In 2016, its first year of operations, Wilber Company reported pretax accounting income of $60,000. Included in the $60,000 was

an expense for accrued, unpaid warranty costs of $8,000, which are not deductible until paid for income tax purposes. Wilber's income tax rate was 20%. The entry to record the income tax expense would include a:
A. credit to Income Taxes Payable for $12,000.
B. credit to Income Tax Expense for $12,000.
C. debit to Deferred Tax Asset for $1,600.
D. credit to Deferred Tax Liability for $1,600.
Business
1 answer:
Alex Ar [27]3 years ago
3 0

Answer:

credit to Deferred Tax Liability for $1,600.

Explanation:

Deferred tax liability is a tax expense that accrued within one accounting period but is payable at a future period.

The journal entries on creation of the deferred tax liability includes a debit to Income tax expense and a credit to deferred tax liability.

On settling of the deferred tax we debit deferred tax liability and credit Income tax expense.

In this instance the income tax rate is 20%. Warranty cost of $8,000 is deferred.

Deferred tax= 0.2 * 8,000= $1,600

So the journal entry will be a debit to Income tax expense of $1,600 and a credit to Deferred tax liability of $1,600

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bagirrra123 [75]
<span>For 2 nights cost is $10,000 for theater rental, insurance, and musicians. 10% of $10,000 is $1000 that goes to theater if $10,000 worth of ticket is sold, which is to break even. Now the break even cost is $10,000+$1000= $11,000. Cost of one ticket is $10, to break even the total cost, number of tickets that must sell is $11,000 divided by $10, which is 1100 tickets. 1100 tickets must sell in total for two nights to break even.</span>
7 0
3 years ago
______ consists of a set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data
Mademuasel [1]

Answer:

The correct answer is option A.

Explanation:

Marketing research refers to the set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decision-makers involved in marketing goods, services, or ideas.

It involves a number of steps such as defining the objectives and research needs, designing the research, collection of data.  

Marketing research is helpful in making decisions related to marketing goods, services and ideas.

5 0
3 years ago
The expected rates of return on portfolios A and B are 11% and 14%, respectively. The beta of A is 0.8 and the beta of B is 1.5.
Zigmanuir [339]

Answer:

Portfolio B has a higher return but more volatile stocks. However it depends on how the individual can tolerate risks.

Explanation:

Expected return= free return + Beta (Expected rate of return – risk free rate)

Portfolio A

6%+ +.8*6%

= 6%+4.8%= 10.8%

Portfolio B

6%+1.5(6%)

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It depends on different factors. Portfolio B has a higher return but more volatile stocks. However it depends on how the individual can tolerate risks.

4 0
4 years ago
Beginning merchandise inventory would be found on the worksheet in the
mrs_skeptik [129]
<span>A. income statement debit column</span>
6 0
3 years ago
Read 2 more answers
Corporation Q, a calendar year taxpayer, has incurred the following Section 1231 net gains and losses since its formation in 201
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Answer: $4,000 is ordinary income. No Capital gain

Explanation:

In 2017 and 2018, total Section 1231 losses are:

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= $6,400

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The entire $4,000 is therefore ordinary income.

7 0
3 years ago
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