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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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g "1. How would each of the following events change the equilibrium financial market value of a company? (a)an increase in its c
Mekhanik [1.2K]

Answer:

a. Decrease

b. Decrease

c. Decrease

d. Increase

e. Increase

Explanation:

a. When the company's cost of production increases, this reduces the amount of profits they make. A lower than expected profit margin is frowned upon in the Financial market therefore some people will sell their shares in the company which will have the effect of decreasing market value.

b. An increase in a firm's cost of financing signals an increase in the riskiness of a company. It also means that the company will be paying more on interest which will reduce profits. These 2 thing will drive some investors away thereby reducing the market value.

c. A firm's value can be found by discounting its projected sales and dividends amongst others with a certain discount rate. If a higher rate is used, the present value and hence the market value figure will be less.

d. When there is an increase in Sales revenue, it signals profitability for a company. Investors love profitable companies and will buy more of the company stock which will drive up the price.

e. Projected future profits can be used to calculate present value as well as serve as an indication of future profitability. Investors will buy more shares and drive up the market value.

3 0
3 years ago
Why does a small difference in economic growth result in a large difference in wealth over time?
larisa [96]

Answer:

The correct answer is the option C: Because the effect of compounding allows growth to build upon previous growth.

Explanation:

To begin with, the term of <em>"Compounding"</em> in economics refers to the situation in which an assets' earnings are reinvested to generate more additional earnings over the pass of time and therefore that in an economy when there is a small growth the investors take advantage of the effect that the compounding has over the situation and use it in order to generate more earning in the future and that is why that the the effect of compounding allows growth to build only upon previous growth.

7 0
3 years ago
Accounting about Stockholders' Equity? 1. Common stockholders usually have all of the following rights except: a) To receive div
lisov135 [29]
1. D. to participate in the day-to-day operations.
Let's say that you buy a stock for microsoft, it doesn't make you able to come to their offices and help them handling the customers.

2. C. the risk of bankrupt is less
when you sell your company's stock to other buyers, that buyers will also take the risk from all your company's activity because technically they own a part of your company, which make the risk of going bankrupt is less, but you surrender a part of ownership of your company

3. B. Preferred Stock

Where a company liquidates its assets, they will distribute the payment to all the holders of preferred stock first.

If there's any leftover after the company distribute the payment to preferred stock holders, than that leftover is distributed to the common stock holders

Hope this helped you out

8 0
3 years ago
Joan borrowed $10,000 from a relative to start her own business. Assuming she takes all responsibility for the company's financi
iVinArrow [24]

Answer:

sole proprietorship

Explanation: im guessing

4 0
2 years ago
Compute the Cost of Goods Manufactured and Cost of Goods Sold for Strike Marine Company for the most recent year using the amoun
Alecsey [184]

Answer:

Instructions are below.

Explanation:

<u>First, we need to calculate the direct material used and the manufacturing overhead:</u>

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 22,000 + 74,000 - 34,000

Direct material used= $62,000

Manufacturing overhead:

Insurance on plant $9,500

Depreciation-plant building and equipment 12,600

Repairs and maintenance-plant 3,900

Indirect labor 42,000

Total overhead= $68,000

<u>Now, we can determine the cost of goods manufactured:</u>

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 41,000 + 62,000 + 88,000 + 68,000 - 27,000

cost of goods manufactured= 232,000

<u>Finally, the cost of goods sold:</u>

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 13,000 + 232,000 - 21,000

COGS= $224,000

3 0
2 years ago
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