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Tcecarenko [31]
3 years ago
7

Pretax financial statement income for the year ended December 31, 2018, was $25 million for Scott Pen Company. Scott’s taxable i

ncome was $30 million. This was a result of differences between depreciation for financial reporting purposes and tax purposes. The enacted tax rate is 30% for 2018 and 40% thereafter. What amount should Scott report as the current portion of income tax expense for 2018?
a. $7.5 millionb. $ 9 millionc. $ 10 milliond. $ 12 million
Business
2 answers:
8_murik_8 [283]3 years ago
8 0

Answer:

B. $ 9 million

Explanation:

Pretax financial statement income for the year ended December 31 2018

Scott’s taxable income $30 million

Enacted tax rate is 30% for 2018

Hence;

$30 million × 30% = $9 million

Therefore the amount Scott should report as the current portion of income tax expense for 2018 is $9 million

valkas [14]3 years ago
6 0

Answer:

Option B $9 million is the correct answer.

Explanation:

The current portion of income tax expense is the taxable for the year multiplied by the prevalen tax rate in the year.

Current portion of income tax expense=taxable income*tax rate

taxable income is $30 million

tax rate is 30%

current portion of income tax expense=$30 million*30%=$ 9 million

Option B is the correct answer

However,if one chooses option A,it implies that one had used pretax net income of $25 million in computing the income tax expenses instead of taxable income on which tax is payable

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In a limited partnership:

The inactive partner has limited liability for the business's debts

Explanation:

In a general partnership all partners share equal financial responsibility for the firm's decisions.

This means that all partners are supposed to have equal liabilities but hat is not the case for limited ones.

In limited partnerships there is a general partner who owns most of the business and has most of the availability and the limited partner has pooled resources for the business but has very little personal responsibility to it.

This model is usually there when the firm needs some investors and the person running business is usually the owner only.

7 0
3 years ago
You’ve recently learned that the company where you work is being sold for $300,000. The company’s income statement indicates cur
chubhunter [2.5K]

Answer:

5%

Explanation:

Data provided in the question:

Present value of the company, PV = $300,000

Current Profits, π₀ = $11,000

Interest rate, i = 9% = 0.09

Now,          

we know,            

PV = \pi_0(\frac{1+i}{1-g})

here,

g is the growth rate        

on rearranging, we get          

g =  i - \frac{(1+i)\pi_0}{PV}

on substituting the respective values, we get

g = 0.09 - \frac{(1+0.09)\times11,000}{300,000}

or  

g = 0.05

or

g = 0.05 × 100%

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7 0
3 years ago
Assume that you and your best friend each have $1,000 to invest. You invest your money in a fund that pays 10% per year compound
marishachu [46]

Answer:

correct answer is c. You both have the same amount of money

Explanation:

given data

invest = $1000

pay compound interest = 10%

pay simple interest = 10%

time = 1 year

solution

we get here difference in the total amount that is your friend money -  your money  .................1

so difference in the total amount = invest × (1+rate)^{time} - [ invest + ( invest  × rate × time) ] ......................2

put here value

difference in the total amount = $1000 × (1+0.10)^{1} - [$1000 +  ( 1000  × 10% × 1) ]

difference in the total amount = 0

so correct answer is c. You both have the same amount of money

7 0
3 years ago
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REY [17]

Answer: Vision statement

Explanation:

Vision statement is referred to as or known as an organization's road map, which tends to indicate what the organization believes to become and achieve by putting forth a well defined direction and route for the organization's growth. These statements usually undergo the minimal revisions throughout the lifetime of an organization, unlike the operational goals that might be revised on yearly basis.

7 0
3 years ago
Alex, a 25-year-old banker, joined his friends at a "pub-hopping" trip that had participants visiting six bars in a two-hour spa
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Answer:

Yes because Janine cannot void the contract

7 0
3 years ago
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