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Lisa [10]
3 years ago
11

Packer Corporation’s year 8 income statement reported $130,000 in income before provisions for income taxes. To compute the prov

ision for federal income taxes, the following year 8 data are provided: Rent received in advance $ 22,000 Income from exempt municipal bonds $ 17,000 Depreciation deducted for income tax purposes $ 18,000 Depreciation deducted for financial reporting $ 10,000 What amount should Packer report as taxable income?
Business
1 answer:
romanna [79]3 years ago
5 0

Answer:

$127,000

Explanation:

Calculation for the amount to be reported as taxable income

Using formula

Taxable income=[Year 8 Income Statement + Rent received in advance -Income from exempt municipal bonds -(Depreciation deducted for income tax purposes-Depreciation deducted for financial reporting)]

Let plug in the formula

Taxable income=[$130,000+$ 22,000 -$ 17,000 -( $ 18,000 -$ 10,000 )]

Taxable income=$130,000+$ 22,000 -$ 17,000 -$8,000

Taxable income=$127,000

Therefore the amount that Packer should report as taxable income will be $127,000

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Gruber Corp. pays a $9 dividend on its stock. The company will maintain this dividend for the next 3 years. In year 4, the divid
stealth61 [152]

Answer:

Share price Today = $172.574

Explanation:

Using dividend growth model we can compute price of share after 3 years,

As follows:

P_3 = \frac{D_4}{K_e - g}

Where P3 = Price at end of year 3

D4 = Dividend at end of year 4 = $10

Ke = Cost of return = 10%

g = growth rate = 5%

P3 = \frac{10}{0.10-0.05} = $200

Now, we have

Year    Dividend or price        Present value factor          Present Value

1                     $9                                0.909                                $8.181

2                    $9                                0.826                                $7.434

3                    $9                                0.751                                  $6.759  

3                    $200                           0.751                                  $150.20

Net Present value of share today = $172.574

3 0
4 years ago
Assuming purchase costs are rising, determine which statements below are correct regardingthe cost of goods sold under FIFO, LIF
Contact [7]

Answer:

1. Companies using FIFO will report the highest gross profit and net income.

2. Companies using FIFO will report the smallest cost of goods sold.

3. Weighted average cost of goods sold will be between FIFO and LIFO costs of goods sold.

4. Companies using FIFO will pay higher taxes than companies using LIFO, assuming all else being equal.

Explanation:

If costs are rising, companies using FIFO will report higher profits simply because they calculate cost of goods sold based on the oldest products which were purchased at a lower cost.

FIFO and LIFO costs will be the extreme points, FIFO showing lowest costs while LIFO will result in the highest costs, while the weighted average will be in between.

Since companies using FIFO report higher profits, they will have to pay more taxes.

8 0
4 years ago
Yoshi operates a shoe store as a sole proprietorship. However, he is in poor health and may be unable to continue running the bu
Shalnov [3]

Answer:

A. ceases to exist unless sold or taken over by Yoshi's heirs. 

Explanation:

A sole proprietorship is a from of business which is owned by one person. The owner is usually the decision maker.

One of the disadvantages of sole proprietorship is lack of continuity. The business usually ends when the owner dies. Although , family members can take over running the business.

I hope my answer helps you.

6 0
3 years ago
Describe at least two significant technological advances you have witnessed over your lifetime. explain how they made your life
alekssr [168]
One technological advance I have experienced in detail was the conversion from Imperial to the metric system in Canada especially in the mines I worked at. The advantage was that now everything could be done in 10's like millimeters, centimeters, metres and kilometers for example. The drawback would be that I was accustomed to say with cars to use miles per gallon and I had a hard time to envisage kilometres per liter. Another innovation I experienced first hand was the development of the GPS. This made it easier to locate oneself in the field provided there was good satellite reception and at least for the handheld GPS the accuracy was only down to about +-5meters so was not exact. Only the more expensive GPS like the Trimble could zero one in with sub-centimetre accuracy.
5 0
3 years ago
There are significant differences between marketing internationally and marketing domestically. quizlet
Troyanec [42]

Domestic marketing refers to carrying out marketing activities within the national boundaries. International marketing refers to carrying out marketing activities outside the national boundaries also. It refers to doing marketing in local market and it's scope is limited.

<h3>How important is international marketing?</h3>

The role of international marketing ensures that the marketing mix for a company's product or service matches (changing) international customer needs as well as seeking opportunities to use a company's competitive advantages to market other products in new and existing markets.

Domestic marketing is the supply and demand of goods and services within a single country. In domestic trading, a firm faces only one set of competitive, economic, and market issues and essentially must deal with only one set of customers, although the company may have several segments in a market.

To learn more about Domestic marketing  visit the link

brainly.com/question/25010904

#SPJ4

4 0
2 years ago
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