Answer: Liability of $300,000
Explanation:
In the question above, what we have is a deferred tax liability, which could be explained as the amount accrued in taxes at a present time but payable in the future. The tax rate will not be based in the present tax rate. Thus is why we will not be using the 30% tax tate of 2018 in calculating the tax amount.
Tax rate = 40%
Exceeded tax basis = $750,000
0.4 × 750,000 = $300,000
Therefore, Johns-Hopper should report the deferred tax effect of this difference in its December 31, 2018, balance sheet as Liability of $300,000
Answer:
Losses for the producers of Waterworld, if they finished the movie would be <u>$50 million</u>. If they did not finish the movie, losses would be <u>$130 million.</u>
Explanation:
This is because, the difference between all their expenses in making the movie and the revenue generated is actually <em>$50 million</em>. This happens to be their losses while on the other-hand, if they didn't finish making the movie, it would be <em>$130 million </em>(aside the cost spent in finishing the movie after rebuilding the set)
Answer:
Sales revenue $ 710,000
Cost of goods sold $ 385,000
Gross Profit $ 325,000
Selling expense 71,000
Administrative expense 91,000
Operating Income 163,000
Non-Operating Income
Interest revenue 44,000
Gain on sale of investments 91,000
Interest expense (28,000)
Restructuring costs (67,000)
Income before taxes 203,000
Income tax expense (50,750)
Net Income 152,250
Shares outstanding 100,000
Earnings per share $1.52
Explanation:
We need to determinate gross profit.
then, the operating income therefore the interest and restructuring cost are not considered. Same goes for the gain on investment as aren't part of the business normal activities.
Answer:
The maximum that should be paid for the stock today is $45 per share.
Explanation:
To calculate the current share price or the maximum that should be paid for the stock today, we will use the dividend discount model approach.
The dividend discount model (DDM) estimates the value of a share/stock based on the present value of the expected future dividends from the stock. We will use the two stage growth model of DDM here as the growth in dividends of the stock is divided into two stages.
The formula for current price under two stage growth model is,
P0 = D0 * (1+g1) / (1+r) + D0 * (1+g1)^2 / (1+r)^2 + ... + D0 * (1+g1)^n / (1+r)^n +
[( D0 * (1+g1)^n * (1+g2)) / (r - g2)] / (1+r)^n
Where,
g1 is initial growth rate
g2 is the constant growth rate
r is the required rate of return
So, the price of the stock today will be,
P0 = 2 * (1+0.20) / (1+0.12) + 2 * (1+0.20)^2 / (1+0.12)^2 +
[( 2 * (1+0.20)^2 * (1+0.06)) / (0.12 - 0.06)] / (1+0.12)^2
P0 = $45
Answer:
$45,473
Explanation:
Base on the scenario been described in the question, we can use this method to solve the problem.
Solution:
$42,000 + $4,960 – $1,100 – ($1,830 – $1,380) + ($381 – $318)
= $46,960- $,1,100-$450-$63
=$45,473
As our answer
