Answer:
$38 million.
Explanation:
From the question, we are given the following data or information;
A subsidiary has previously unreported brand names valued = $50 million at the date of acquisition.
Impairment testing reveals that the brand names were impaired by $5 million in the first year.
Impairment testing reveals that the brand names were impaired by $7 million in the second year.
Therefore, Eliminating entry (E) will include a(n):
=> $(50 - 5 - 7) million = $38 million.
<u>Calculation of firm's times interest earned ratio:</u>
The times interest earned ratio can be calculated with the help of following formula:
Times interest earned ratio = Income before Interest and Tax / Interest Expense
Interest expense is given $898, and Income before Interest and Tax can be calculated as follows:
Net Income $4,238
Add: Tax (4238*35/65) $2,282
Income before tax =$6520
Add: Interest Expense $898
Income before Interest and Tax = $7,418
Hence, Times interest earned ratio = 7418 /898 = <u>8.26 times</u>
Answer:
When you receive confirmation that the IRS accepted your return, it means that they have reviewed your return, and it has passed their initial inspection. They verify your personal information and other basic items, like if your dependents have already been claimed by someone else.
Explanation:
Answer:
Option e: An increase in the corporate tax rate
Explanation:
Corporate income tax rate is used to know how much people are willing to invest their new capital and also where they will place that new capital.
An increase in it is likely to encourage a company to use more debt in its capital structure.
The lower the corporate tax rate, the more it drives or leads to growth in capital stock, wages, jobs and others while the higer(increase) in corporate income tax rate, the more it affects economic decisions.
An Increase in a company's debt ratio will therefore lead to an increase in the marginal cost of both debt and equity financing. Also this action may lower the company's WACC
