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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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Let's think about billions by looking at Bill Gates, president of Microsoft. One year, his personal wealth grew by $20 billion.
marta [7]

Answer:

No, he should <u>not</u> pick up the $100 bill

Explanation:

If his salary were those $20 billion (20,000,000,000) by a year. Let's find out how much this is by a second.

First let's find out how much is that salary by <em>a day</em>, then by <em>an hour</em>, then by <em>a minute</em> and finally by <em>a second</em>.

\frac{20,000,000,000}{year}*(\frac{1 year}{365d})*(\frac{1d}{24h})*(\frac{1}{60min} )*(\frac{1min}{60s} )  \\\\  =\frac{20,000,000,000}{365*24*60*60} \\ \\ =\frac{20,000,000,000}{31,536,000} \\ \\ =634.19

So he would be losing money if he picks up the $100 bill, because he would be missing 634 dollars per second.

6 0
3 years ago
In some instances, BPM will lead to a paradigm shift that transforms the nature of the business itself True False
neonofarm [45]

Answer:

In some instances ,BPM will lead to a paradigm shift that transforms the nature of the business itself.it is false.

Explanation: BPM means business process management. Paradigm shift means a drastic change.A massive change in standards ,thinking patterns and values.

BPM brings changes in business .It is an approach to execute and control various processes to achieve the results according to the goals of the organisation.BPM do bring changes in business but it does not lead to a paradigm shift that transforms the nature of business.

4 0
3 years ago
Equate, a brand of health and beauty care products, is available only at walmart stores. equate is a ____ brand.
tatiyna
The correct answer that would best complete the given statement above would be PRIVATE BRAND. <span>Equate, a brand of health and beauty care products, is available only at Walmart stores. Equate is a private brand. Other choices for this question include manufacturer's, international, family and corporate. Hope this helps.</span>
7 0
3 years ago
Why is it important for the government to achieve these five objectives?
Lelu [443]

Answer: Equality

Without proper guidelines in place one would outweigh the other cause an imbalance. If the government didn't keep those equal there wouldn't be enough stability and nobody would be able to live fairly.

5 0
3 years ago
a company earned $3,000 in net income for october. its net sales for october were $10,000. its profit margin is
kari74 [83]

Answer:

30%

Explanation:

The computation of the profit margin is shown below:

Given that

Net income earned for the month of October = $3,000

And, the net sales for the month of October is $10,000

Based on the above information, the profit margin is

= Net income ÷ Net sales

= $3,000 ÷ $10,000

= 30%

By dividing the net income from the net sales we can get the profit margin and the same is to be considered

6 0
3 years ago
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