Explanation:
Journal entries are used by Accountants to post transactions into the respective General Ledger of a business.
It typically shows a debit side which records increase to expenses or Assets, it also could be a reduction to Income or Liabilities (if it is an adjustment Journal). And it also shows a credit side which records an increase to Income or Liability, it could also be a reduction to expense or Asset (if it's an adjustment journal)
Answer:
c.$10,500
Explanation:
The computation of the deferred income tax asset is shown below:
= Warranty expense for book purposes × U.S tax rate
= $50,000 ×21%
= $10,500
For computing the deferred income tax asset reported, we simply multiply the warranty expense with the U.S tax rate.
Hence, we ignored the net income before tax as it is an irrelevant part which is given in the question
Answer:
Matthew owns 30 percent of the outstanding stock of Lindman and has the ability to significantly influence the investee's operations and decision making. On January 1, 2015, the balance in the Investment in Lindman account is $337,000. Amortization associated with this acquisition is $10,000 per year.
Explanation:
Answer:
X would get $ 90,000 * 50,000/ 150,000= $ 30,000
Explanation:
Net income of $ 90,000 would be distributed in their profit sharing ratio which is 1:3 for X:Y
So X would get $ 90,000 * 50,000/ 150,000= $ 30,000
Y would get $ 90,000 * 100,000/ 150,000= $ 60,000
Net income is distributed after deduction of salaries and interest so it would not include the amount of salary paid to partners.
