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S_A_V [24]
3 years ago
11

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

ght-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?

Business
1 answer:
Igoryamba3 years ago
4 0

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:

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Crestfield leases office space. On January 3, the company incurs $23,000 to improve the leased office space. These improvements
Lisa [10]

Answer:

Amortization expense $11,500

   To Accumulated Amortization- Leasehold improvements $11,500

(Being the expenses for the first year is recorded)

Explanation:

The journal entry is as follows

Amortization expense $11,500

   To Accumulated Amortization- Leasehold improvements $11,500

(Being the expenses for the first year is recorded)

The computation is shown below:

= Incurred expenses ÷ remaining life

= $23,000 ÷ 2

= $11,500

While recording this transaction we debited the amortization expense as the expenses account is increased while at the same time the accumulated amortization should be credited as it decreased the value of the asset

5 0
3 years ago
Consider the US market for chocolate, a market in which the government has imposed a price ceiling. Which of the following event
natita [175]

Answer:

D) South American cocoa bean producers refuse to ship to chocolate producers in the US.

Explanation:

A nonbinding rice ceiling means that the equilibrium price is below the price ceiling, so it will have no effect in real life. In order for the price ceiling to become binding and start to negatively affect the market, the equilibrium price must increase.  

The only option that would increase the equilibrium price is option D, since the shortage of a key input will probably result in an increase in the price of the key input. If the price of a key input increases, the cost of producing chocolate will increase, resulting in a leftward shift of the supply curve.

A leftward shift of the supply curve will decrease the total quantity supplied and it will increase the price of chocolate at every level of quantity demanded. This will result in an increase in the equilibrium price which might ultimately change the price ceiling from nonbinding to binding.

6 0
2 years ago
On January 2, 2019, David loans his S corporation $10,000. By the end of 2019 David's stock basis is zero and the basis in his n
Aleonysh [2.5K]

Answer:

2000LTC

Explanation:

From the given data, the distribution which is $8000 will be subtracted from $10000 which is David's stock basis and this will remain l $2000

That is to say

($10000-$8000) = $2000 As the

stock basis.

6 0
3 years ago
Q. An urban planner is designing a new urban housing development. It will have fiveapartment buildings, two basketball courts, a
Scrat [10]

Complete Question:

An urban planner is designing a new urban housing development in a currently rural area near an existing city. The urban development will have five 10-story apartment buildings, two basketball courts, a playground with permeable foam pavers, a 10-acre green space with a small man-made pond, one 5-story parking deck, and direct access to the mass transit train line. Which of the following aspects of the design for this new urban development will best help to reduce the amount of carbon dioxide released into the atmosphere?

A. The land cleared to build the new development occurs in a rural area rather than within the city limits.

B. The playground is made with permeable foam pavers rather than with impervious concrete.

C. Access to the mass transit train line will provide inhabitants an alternative to driving personal vehicles.

D. Food and other resources must be transported to the development from up to 200 miles away.

Answer:

Access to the mass transit train line will provide inhabitants an alternative to driving personal vehicles.

Explanation:

The best option that will help to reduce the amount of carbon dioxide released into the atmosphere is to create access to the mass transit train line which will consequently provide inhabitants an alternative to driving personal vehicles.

8 0
3 years ago
What are some examples of financial institutions that people use to manage their money. Please give at least 2 examples describi
matrenka [14]

Answer:

<h3>Here we take a look at these, from central banks to neighborhood banks and everything in between.</h3>

Explanation:

Central Banks.

Savings and Loan Associations.

Credit Unions.

8 0
2 years ago
Read 2 more answers
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