When practical and reasonable, U.S. auditing standards require the confirmation of

On January 1, 2018, Ameen Company purchased major pieces of manufacturing equipment for a total of $54 million. Ameen uses strai

Igoryamba

Answer:

Answer for the question:

On January 1, 2018, Ameen Company purchased major pieces of manufacturing equipment for a total of $54 million. Ameen uses straight-line depreciation for financial statement reporting and deducted 100% of the equipment’s cost for income tax reporting in 2018. At December 31, 2020, the book value of the equipment was $48 million. At December 31, 2021, the book value of the equipment was $40 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2021 was $68 million. Required: 1. Prepare the appropriate journal entry to record Ameen’s 2021 income taxes. Assume an income tax rate of 25%. 2. What is Ameen’s 2021 net income?

Is given in the attachment.

Explanation:

4 0

3 years ago

When solar panels became popular in the market, Dabbanth, a company that manufactures and sells kitchenware, developed container

PtichkaEL [24]

Answer: Technological component.

Explanation:

In the question, Solar panels are widely accepted by the consumers in the market, therefore it is an important technological component, that influences buyers behavior.

Dabbanth company is aware of the wide customers acceptance of the solar panels, therefore they incorporate it into most of the kitchenwares they produce to draw buyers attention to their product.

6 0

3 years ago

You have decided to refinance your mortgage. You plan to borrow whatever is outstanding on your current mortgage. The current mo

Maslowich

Answer:

Mortgage liaiblity today: 424.092,31‬

Explanation:

We need to solve for mortage principal then;

how much do we amortize during four years and eight months old.

Last, decrease from the principal to know the current mortgage liability:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 3,120

time 360 (30 years x 12 months per year)

rate 0.00625

$3120 \times \frac{1-(1+0.00625)^{-360} }{0.00625} = PV\\$

PV $446,214.9972

Interest at first period:

446,215 x 0.00625 = 2.788,84

Amortization at first period:

3120 - 2,788.84 = 331.16

Total Amount amortized: will be the future value of the annuity of this first depreication during the life of the mortgage

$C \times \frac{(1+r)^{time} -1}{rate} = FV\\$

C 331

time 56

rate 0.00625

$331.16 \times \frac{(1+0.00625)^{56} -1}{0.00625} = FV\\$

Total Amortized: $22,122.6919

Mortgage liaiblity today:

446,215 - 22,122.69 = 424.092,31‬

4 0

2 years ago

What is the Total Cost of a stock purchase if the stock price is $54, shares purchased 150, with a $5 Commission Fee? (See probl

ankoles [38]

Answer:

a $8,105

Explanation:

To find the answer you have to use the ormula to calculate the total cost of a stock purchase:

Total cost=(Price per stock*Number of stocks)+Commission

Total cost=($54*150)+$5

Total cost=$8,105

According to this, the answer is that the total cost of a stock purchase is $8,105.

3 0

3 years ago

Foote Company recorded a purchase discount of $200 on merchandise the company had purchased on account a few days ago. Foote use

romanna [79]

Answer:

B. n/a (200) 200 200 n/a 200 n/a

Explanation:

A purchase discount is a contra-expense account which has a credit balance. Expenses have normal debit balances, so a credit balance will decrease the expenses incurred by the company.

E.g. you paid $100 within the discount period (2% discount)

Dr Accounts payable 100

Cr Cash 98

Cr Purchase discounts 2

This transaction doe snot affect assets, but it will decrease liabilities by $200 and increase R.E. by $200. Since this is a contra expense account, it will increase revenue and net income. It doesn't generate any additional cash flows.

7 0

3 years ago

When practical and​ reasonable, U.S. auditing standards require the confirmation of

When practical and reasonable, U.S. auditing standards require the confirmation of