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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:

You might be interested in
Immediately after graduating you bought a car with a bank loan of $20,000. The term of the loan is 5 years with monthly payments
xz_007 [3.2K]

Answer:

Explanation:

Principal borrowed =$20,000

Loan year=5years

Monthly interest =12%

We need to find the amount after 12years

Compound interest is give as

Using compound interest formula

A=P(1+r/n)^nt

Where,

P = principal amount = $20,000

r = annual rate of interest =12%=0.12

t = number of years the amount invested =5years

A = amount of money accumulated after n years, including interest.

n = number of times the interest is compounded per year=12months

Therefore,

A=P(1+r/n)^nt

A=20,000(1+0.12/12)^5×12

A=20,000(1+0.01)^60

A=20,000(1.01)^60

A=20,000×1.817

A=$36,333.9

So he is meant to pay $36,333.9 for 5years (60months)

Then he will pay

$36,333.9/60

He will pay $605.57 per month

So his twelfth payment is 605.47×12=$7266.78

Using is normal payment

He is suppose to pay $20,000 at a rate of $20,000/60=333.33

Then after the twelve payment, then he his supposed to pay $333.33×12=$4000

So the interest between on the twelfth payment is 7266.78-4000 =$3266.9

7 0
3 years ago
Consider Country (Z) with a GDP level of 210,000 and a growth rate of 5% in 2019 (i.e. calculated at the end of year 2019). The
Natasha2012 [34]

Answer:

Country (Z) GDP Growth:

a) The GDP will double in:

2019 - 2022 = 3 years

2022 - 2025 = 3 years

2025 to 20 years as determined below

Total = 26 years

The GDP will double in 26 years.

b) The growth rate from 2025 and so on at 1% will approach 27.62% based on the 2019 GDP.  The approach used is to determine the difference between the after 2025 GDP and the 2019 GDP.  This difference (growth in absolute terms) is divided by the 2019 GDP, and then multiplied by 100 to obtain the rate.

c) If the growth rate of 5% is sustained, it will take the GDP 15 years to double:

420,000 = G₀(1 + g)ⁿ

420,000 = 210,000 (1 + 5%)ⁿ

Solving for n with an online calculator,

n = 15 years

Check:

210,000 x 2.079

= 436,590

= 437,000 approx.

As a number of years = 15 years

As a fraction of part a answer = 15/26 = 57.69%

Explanation:

a) 2019 Country Z's GDP = 210,000

2019  - 2022 Growth rate = 5%

Future growth rates:

2022- 2025 = 3%

2025 - so on = 1%

Let Country (Z's) GDP in 2019 = G₀ which is equal to 210,000

n = number of years from 2019 to 2022, 2022 to 2025, and so on.

g = growth rate = 5% for the period 2019 to 2022

Gⁿ = GDP in n years at given rates

Gⁿ = G₀(1 + g)ⁿ

(1 + g)ⁿ = increase in GDP as a result of the growth rate and number of years

b) With GDP growth of 5% from 2019 to 2022, the GDP will be

= 210,000 (1 + 5%)³

= 210,000 x 1.158

= 243,000 approx.

c) From 2022 to 2025 at 3%, the GDP will be

= 243,000 (1 + 3%)³

= 243,000 x 1.093

= 265,600

For GDP to double the 2019 GDP with 3% growth = 420,000 (210,000 x 2) or more

GDP = Gⁿ = G₀(1 + g)ⁿ

420,000 = 243,000 (1 + 3%)ⁿ

solving for n with an online calculator,

n = 20

Check:

= 243,000 (1 + 3%)∧20

= 243,000 x 1.817

= 441,531

= 442,000

4 0
3 years ago
Task identity refers to: Group of answer choices the degree to which a job entails a variety of different activities, requiring
SVETLANKA909090 [29]

Answer:

the degree to which a job requires completion of an identifiable piece of work with a visible outcome.

Explanation:

According to the  Job Characteristics Model by Hackman and Oldham (1980), jobs have 5 important characteristics

<h3>The characteristics include : </h3>

1. Task identity : It involves an employee carrying out a job function from the beginning to the end rather than in bits and pieces. It involves the the degree to which a job requires completion of an identifiable piece of work with a visible outcome. Job satisfaction is higher when an employee is about to complete the whole task and not just a part of the task.

2. Task significance : the degree to which a job done impact the lives of people. They can include individuals in the organisation or in the society

3. Autonomy : the degree to which a job provides independence and discretion to an individual in scheduling the work and determining the procedures to use.

4. Feedback : the degree to which an employee receives report on the work or functions carried out in the organisation

5. Skill variety : the degree to which a job entails a variety of different activities, requiring the use of different skills and talents

4 0
3 years ago
Which statement is false?
Naddik [55]

It is true that a society accepts minimum wage laws as a method of determining wages because the law is made to determine the wages.


The market value of a good has a direct relationship with the wages; hence it is true that the market value of a good determines wages.

The quality of a good has no direct relationship with the amount of wages hence it does not determines the wages.

Employee productivity also has a direct relation with the quality of the work and hence it also determines the wages.

It is true according to the law that the price floor determines the minimum wage.


Hence the only False statement is:

The quality of a good determines wages.



7 0
3 years ago
Read 2 more answers
12. Fun Corp makes playgrounds for schools and day care centers. At the end of May, the total ending balance of work in process
MissTica

Answer:

$  7,248

Explanation:

Prorating:

                       Before      Rate                          

WIP                    14,670   14,670/30,000 = 0.489

FInished Goods        0

COGS                15,330  15,330 / 30,000 = .511

Total                   30,000

Allocation of overapplied overhead to WIP

1,200 x 0.489 = $ 586.8

Allocation to Job #58

<u />

Overhead Job #58: Total cost:

Materials 6,470

18 hours x $20 = 360 labor cost

360 labor cost x 200% overhead rate = 720 applied overhead

Total cost (before prorating): 7,550

586.8/14,670 x 7,550 = 302

<u>Adjusted balance:</u>

Materials 6,470

Labor cost: 360

Overhead: 720 - 302 = 418

Total 7,248

We subtract as the overhead was overapplied, we capitalzie more cost than we should.

6 0
3 years ago
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