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3 years ago

West Corp. leased a building and received the $36,000 annual rental payment on June 15, 2004.

Business

1 answer:

Shtirlitz [24]3 years ago

3 0

Answer:

$7,200

Explanation:

West should recognize 6 months of rent during 2004 = $36,000 x 6/12 = $18,000

So West will recognize the remaining $18,000 in rent during 2005, but it decided that the operation will be taxed completely during 2004.

Since the future taxable income will be less than the future pre-tax accounting income be $18,000, then they must report a deferred tax asset = $18,000 x 40% = $7,200

The current tax rate is lower than the future tax rate, but West has to record its tax asset based on the future tax rate, not the current one.

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As a general rule, a product ________ strategy seems to work best when the consumer target market for the product is alike acros

vodomira [7]

Answer:

The correct answer is letter "B": product extension.

Explanation:

In International Business, product extension refers to the approach by which a firm introduces its product or service across borders without shaping the product according to the profile of each consumer in each region. Product extension is implemented to expand the business operations of a firm in an attempt of finding new consumers in new markets, thus, generating more profit.

Product extension is likely to work only if customers' preferences and necessities are the same in different countries.

7 0

3 years ago

Dividends are part of the return you receive on your investment when you buy stock.

Shalnov [3]

That sounds about right for accounting anyway

4 0

3 years ago

Read 2 more answers

Aces, Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,000 rackets and sold 4,900. At

SVETLANKA909090 [29]

Answer:

$165,500

Explanation:

Given that,

Sales (4,900 × $90) = $ 441,000

Cost of goods sold (4,900 × $38) = 186,200

Gross margin = $ 254,800

Selling and administrative expenses = $75,000

Net income = $ 179,800

Production costs per tennis racket total = $38

Variable production cost = $25

Fixed production cost = $13

Units produced = 6,000

Contribution margin:

= Sales - Variable production costs

= $441,000 - (4,900 × 25)

= $441,000 - $122,500

= $318,500

Fixed costs = Fixed production costs + Selling and administrative expenses

= ($13 × 6,000) + $75,000

= $78,000 + $75,000

= $153,000

Net income under variable costing:

= Contribution margin - Fixed costs

= $318,500 - $153,000

= $165,500

8 0

3 years ago

If the current dividend (D0) is $3.00 and the growth rate is 6%. How much will the dividend be at Time 5?

katen-ka-za [31]

The dividend will be $4.015

Explanation:

The given data is: Initial dividend given is = $3 and growth rate given is = 6%

the following formula is used in order to calculate the dividend

dividend at time 5 = d0 multiply with (1+growth rate) power 5

= $3.00 multiply with (1+0.06) power 5

=>$3.00 multiply (1.33822558)

=>$4.015 (rounded to two decimals).

Note : The dividend is the amount that is paid by the company to its shareholders. The amount of dividend may vary from year to year depending upon the profitability level of the company that it earned during the year.

5 0

3 years ago

Boulder Company reports current E&P of $500,000 this year and accumulated negative E&P at the beginning of the year of $

mrs_skeptik [129]

Answer:

$400,000

Explanation:

Distribution for a particular year will be first drawn for the earning and profits for that year. Distributions will be treated as dividends if the earnings and profits in the current year are positive, regardless of whether the accumulated balance is negative.

Boulder had positive earnings and profits of $500,000. It has distributions of $400,000, which will be drawn from the earning from the current earnings. This distribution will be dividends because they can be satisfied with the current earnings.

4 0

3 years ago