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marta [7]
3 years ago
12

At December 31, year 3 , Bren Co. had the following deferred income tax items: • A deferred income tax liability of $15,000 rela

ted to a noncurrent asset. • A deferred income tax asset of $3,000 related to a noncurrent liability. • A deferred income tax asset of $8,000 related to a current liability. Which of the following should Bren report in the noncurrent section of its December 31, year 3 balance sheet?​(A) A noncurrent asset of $3,000 and a noncurrent liability of $15,000.(B) A noncurrent liability of $4,000.(C) A noncurrent liability of $12,000.(D) A noncurrent asset of $11,000 and a noncurrent liability of $15,000.
Business
1 answer:
ahrayia [7]3 years ago
8 0

Answer:

(B) A noncurrent liability of $4,000

Explanation:

The non-current liability in respect of deferred tax shall be recognised in the accounts of Bren Co. as at December 31 as follows:

Deferred income tax liability related to non-current assets= $15,000

Deferred income tax asset related to non-current liability = ($3,000)

Deferred income tax asset related to current liability         = ($8,000)

Deferred income tax liability to be recorded at year end   = $4,000

So based on the above discussion the answer is (B) A noncurrent liability of $4,000

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You have taken a job in industry and are facing your first ordering decision. As you prepare to place the order, you remember yo
skelet666 [1.2K]

Answer:

The formula is not used if consumer demand and ordering and holding costs are not constant.

Explanation:

E.O.Q formula measures the ideal quantity of order a company should purchase in order to minimize its inventory costs, such as holding costs and shortage costs. The formula, however has its limitations, in a way that it assumes that the costumer demand is constant and ordering and holding costs remain constant. This makes formula hard to use in case of seasonal changes of demand, inventory costs or lost sales revenue due to inventory shortages.

7 0
3 years ago
Company A has a beta of 0.70, while Company B's beta is 0.80. The required return on the stock market is 11.00%, and the risk-fr
alina1380 [7]

Answer:

the differene in the required rate of return of eahc company is 0.675%

Explanation:

we solve using the CAPM method:

Ke= r_f + \beta (r_m-r_f)  

risk free 0.0425

market rate 0.11

Company A

beta(non diversifiable risk) 0.7  

Ke= 0.0425 + 0.7 (0.0675)  

Ke 0.08975 = 8.975%

Company B

beta(non diversifiable risk) 0.8

Ke= 0.0425 + 0.8 (0.0675)

Ke 0.09650 = 9.65%

difference: 9.65% - 8.975% =  0.675%

5 0
3 years ago
f the steps are small, a step-variable cost may be approximated using a ______ cost function without significant loss in accurac
posledela

If the steps are small, a step-variable cost may be approximated using a Variable cost function without significant loss in accuracy.

<h3>Variable cost function</h3>
  • An expense for the company that varies according to how much is produced or sold is called a variable cost.
  • Depending on a company's production or sales volume, variable costs grow or fall. They climb as production rises and reduce as production declines.
  • It is a production cost whose level fluctuates in response to shifts in a business's manufacturing activities.
  • For instance, the raw materials required to make a product's components are regarded as variable costs because they frequently change depending on the volume of units produced.
  • The total variable cost curve depicts the relationship between total variable cost and the volume of output produced graphically.

To learn more about the Variable cost function refer to:

brainly.com/question/27996021

#SPJ4

7 0
2 years ago
Which term describes the restoration of the insured person to the financial position he or she was in before the loss occurred?.
Ksivusya [100]
The term that describes the restoration of the insured person to the financial position that he or she was in before the loss occurred is called indemnity. This allows protection to the insurer in case of loss and damage and will protect against any legal quandry that may occur.
4 0
3 years ago
Read 2 more answers
During the taking of its physical inventory on August 31, 2019, Kate Interiors Company incorrectly counted its inventory as $366
soldier1979 [14.2K]

Answer:

Balance sheet

Inventory - Understatement by $11,600

Owners equity - Understatement by $11,600

Income statement

Cost of goods sold - Overstatement by $11,600

Net income - Understatement by $11,600

Explanation:

The movement in an inventory account which is the difference between the opening and ending balances is a function of the purchases and the sales during the period.

This is captured in the equation below

Opening balance + purchases - cost of goods sold = ending balance

Hence an understatement of the ending balance would result in an overstatement of the cost of goods sold thus an understatement of the net income (and owner's equity).

The understatement in closing inventory balance is

= $378,500 - $366,900

= $11,600.

3 0
3 years ago
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