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Murrr4er [49]
3 years ago
5

At the beginning of 2022, KPD Inc has depreciable assets with a financial accounting book value of $100 million and a tax basis

of $80 million. At the end of 2022, KPD’s depreciable assets have a financial accounting book value of $90 million and a tax basis of $74 million. KPD calculated tax payable of $10 million for 2022, and its tax rate is 25%. Based on only that information, KPD’s tax expense for 2022 is___________
Business
1 answer:
jasenka [17]3 years ago
5 0

Answer:

KPD’s tax expense for 2022 is $9 million.

Explanation:

                                                                                                       $ in Millions

Taxable Income                                                (10/25%)              40

Add: Tax basis depreciation                                 (80-74)                6

Accounting Income before Deprecation                                46

Less: Accounting Deprecation                         (100-90)               10

Accounting Income                                                                36

Tax expense                                                          (36x25%)         9

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Lapatulllka [165]

Answer:

The correct answer is b. substitutes, complements.

Explanation:

One argument for the growing income gap between the unskilled and skilled workers in America is that unskilled workers are <u>substitute</u>s with technology and skilled are <u>complements</u> with technology.

3 0
3 years ago
Successful change requires that organizations be capable of both creating and implementing ideas, which means the organization m
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Ambidextrous
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3 0
2 years ago
Farmer Brown grows Number 1 red corn and would like to hedge the value of the coming harvest. However, the futures contract is t
Ne4ueva [31]

Answer:

Sell 33 contracts

Explanation:

According to the scenario, computation of the given data are as follows:

Price of yellow corn = 95% of red corn

Bushels grows = 156,750

So, yellow corn bushels = 156,750 × (1 ÷ 95%)

= 165,000

So, number of contracts sell = 165,000 ÷ 5,000

= 33 contracts.

Hence, the farmer Brown should sell 33 contracts to hedge his position.

6 0
3 years ago
The risk-free rate is 5 percent and the market risk premium is 8 percent. Stock Y's beta is 1.85 and the standard deviation of i
Romashka [77]

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Explanation:

5 0
3 years ago
Kim's Bridal Shoppe has 15,000 shares of common stock outstanding at a price of $11 a share. It also has 2,000 shares of preferr
AURORKA [14]

Answer:

Market value of common stocks (15,000 x $11)     165,000

Market value of preferred stocks  (2,000 x $34)   68,000

Market value of bonds  (50 x $960)                        48,000

Market value of the firm                                           281,000

The capital structure weight of common stocks

= $165,000/$281,000 x 100

= 58.72%

Explanation:

In this case, there is need to determine the market value of the company, which is the aggregate of market value of common stocks, market value of preferred stocks and market value of bonds. The capital structure weight of common stocks is the ratio of market value of common stocks to market value of the company multiplied by 100.

5 0
3 years ago
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