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Nostrana [21]
3 years ago
11

Taxpayer L has income of $55,000 from Norway, which imposes a 40 percent income tax, and income of $45,000 from France, which im

poses a 30 percent income tax. L has additional taxable income from U.S. sources of $200,000 and U.S. tax liability before credits of $105,000. What is the amount of the foreign tax credit?
Business
1 answer:
saveliy_v [14]3 years ago
3 0

Answer:

The amount of the foreign tax credit is $52,500

Explanation:

Given:

Income from Norway = $55,000

Income tax in Norway = 40%

Income from France = $45,000

Income tax in France = 30%

Taxable income from U.S. sources = $200,000

U.S. tax liability = $105,000

Tax paid in Norway = $55,000 × 40% = $22,000

Tax paid in France = $45,000 × 30% = $13,500

Foreign tax credit = (Net foreign income ÷ U.S. taxable income) × U.S. tax liability

= ($100,000 ÷ $200,000) × $105,000

= $52,500

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On July 1, 2020, the beginning of its fiscal year, Ridgedale County recorded gross property tax levies of $5,100,000. The county
vampirchik [111]

Answer:

Dr Taxes Receivable- Current $5,100,000

Cr Allowance for Uncollectible Current Taxes $153,000

Cr. Revenues $4,947,000

Dr Cash $4,755,000

Cr Taxes Receivable-Current $4,755,000

Dr Taxes Receivable-Delinquent $345,000

Dr Allowance for Uncollectible Current Taxes $153,000

Cr Taxes Receivable-Current $345,000

Cr Allowance for Uncollectible Delinquent Taxes $153,000

(3%*$5,100,000)

Dr Interest & Penalties on Delinquent Taxes $15,400

Cr Allowance for Uncollectible Interest and Penalties $2,150

Cr Revenues $13,250

Dr Cash $63,200

Cr Taxes Receivable-Delinquent $57,500

Cr Interest & Penalties Receivable on Taxes $5,700

Explanation:

Preparation of the journal entries to Record entries for the transactions as stated and to Prepare the journal entries to record the tax levy on July 1, 2020, in the General Fund

Dr Taxes Receivable- Current $5,100,000

Cr Allowance for Uncollectible Current Taxes $153,000

(3%*$5,100,000)

Cr Revenues $4,947,000

($5,100,000-$153,000)

Dr Cash $4,755,000

Cr Taxes Receivable-Current $4,755,000

Dr Taxes Receivable-Delinquent $345,000

$5,100,000-$4,755,000)

Dr Allowance for Uncollectible Current Taxes $153,000

(3%*$5,100,000)

Cr Taxes Receivable-Current $345,000

Cr Allowance for Uncollectible Delinquent Taxes $153,000

(3%*$5,100,000)

Dr Interest & Penalties on Delinquent Taxes $15,400

Cr Allowance for Uncollectible Interest and Penalties $2,150

($15,400-$13,250)

Cr Revenues $13,250

Dr Cash $63,200

( $57,500+$5,700)

Cr Taxes Receivable--Delinquent $57,500

Cr Interest & Penalties Receivable on Taxes $5,700

7 0
2 years ago
REFLECTION QUESTIONS
telo118 [61]

Answer:

Expenses must be close or above $2000 per month

Explanation:

For a business to operate at a profit, its revenues must exceed the expenses by a sizable proposition. Revenues refer to income from business activities, while expenses are the cost incurred in generating that income. Should the costs match or be higher than the revenue, a business will find it challenging to continue operating.

In this case, the business owner is generating revenues of $2000 per month. If he is struggling to stay open, it means the monthly expenses are around or above $2000. The $2000 that the business is generating per month is not sufficient to cater for all expenses and the desired profits. The business owner is probably making losses, and that why he is having trouble keeping the doors open.

8 0
3 years ago
EK Chemical Company sells a specialty chemical in packages marked 83 g. In reality, EK has set the process mean at 84.0 g, and t
Lemur [1.5K]

Answer:

0.7207

Explanation:

Mean  μ = 84g

SD σ = 1.85g

Upper specification limit (USL) = 88g

Lower specification limit (LSL) = 78g

Cpk = Min[USL - μ/3σ,  μ-LSL/3σ]

Cpk = Min[88 - 84/3*1.85, 84-78/3*1.85]

Cpk = Min[4/5.55, 6/5.55]

Cpk = Min[0.7207, 1.0811]

Cpk = 0.7207

So, the process capability index for the current manufacturing process is 0.7207

5 0
3 years ago
Refries Refrigerator Company manufactures ice-makers for installation in refrigerators. The costs per unit for 20,000 units of i
Elis [28]

Answer:

c. $600,000 vs. $528,000.

Explanation:

The computation of the relevant cost of make & buy is given below:

Total relevant cost of making the product is

= (cost per unit - unavoidable fixed cost per unit ) × 20,000 units

= ($34 - $4 ) × 20,000 units

= $600,000.

And, Total relevant cost of buying is

= (cost of buy per unit × 20,000 units ) - Contribution sale of water filtration = ( $28 × 20,000 units ) - ($80,000 - 60% of $80,000)

= $528,000

hence, the option c is correct

4 0
3 years ago
Darin had an automobile accident in which his brother and another passenger were killed. Even though Darin was driving, he survi
Sergio039 [100]

Answer:

D. repression

Explanation:

According to my research on the different neurological defense mechanisms experienced by people who are victims of traumatic experiences, I can say that Darin's inability to recall the accident best illustrates the defense mechanism of repression. This term is defined as<u><em> the psychological attempt of   removing the traumatic memories within your consciousness and placing/holding them within your subconsciousness.</em></u>

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

3 0
3 years ago
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