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Readme [11.4K]
3 years ago
15

Entertainment Tonight, Inc. manufactures and sells stereo systems that include an assurance-type warranty for the first 90 days.

Entertainment Tonight also offers an optional extended coverage plan under which it will repair or replace any defective part for 2 years beyond the expiration of the assurance-type warranty. The total transaction price for the sale of the stereo system and the extended warranty is $3,000. The standalone price of each is $2,100 and $900, respectively. The estimated cost of the assurance-warranty is $350. The accounting for warranty will include a
Business
1 answer:
Alexandra [31]3 years ago
3 0
B. credit to Unearned Warranty Revenue, $871
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In a recent year, sherwood day corporation had sales of $500,000, net income of $200,000, interest expense of $40,000, and tax e
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Incite Co. has a 30 percent tax rate. Its total interest payment for the year just ended was $43.4 million. What is the interest
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Answer: $13,020,000

Explanation:

Given that,

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Interest Tax Shield = Tax rate × Total interest payment

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Therefore, the interest tax shield is $13,020,000.

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