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Over [174]
3 years ago
5

In 2017, Amirante Corporation had pretax financial income of $168,000 and taxable income of $120,000. The difference is due to t

he use of different depreciation methods for tax and accounting purposes. The effective tax rate is 40%. Compute the amount to be reported as income taxes payable at December 31, 2017.
Business
1 answer:
vfiekz [6]3 years ago
5 0

Answer:

The amount of income tax payable on December 31, 2017 amounts to $48,000

Explanation:

The income tax payable amount is computed as below:

Income tax payable = Taxable Income for the year × Tax rate for the year

                                 = $120,000 × 40%

                                 = $48,000

Therefore, the $48,000 will be reported as the amount of income taxable payable on December 31, 2017.

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Outdoor Luggage Inc. makes high-end hard-sided luggage for sports equipment. Data concerning three of the company’s most popul
schepotkina [342]

Answer:

                                                       Ski             Golf           Fishing

                                                       Guard       Guard       Guard

selling price                                   $260         $330        $205

variable cost                                  $120          $180         $135

contribution margin                       $140          $150         $70

machine time                                 9 min.        12 min.      11 min.

lbs. of pellets                                  12              7                11

total machine time is the constraint in the production process

1a)

contribution margin per                 $933.33   $750         $381.82

machine hour

1b)

ski guard since its contribution margin per machine hour is much higher than the rest of the products

1c)

fishing guard since its contribution margin per machine hour is much lower than the rest of the products

2a)

                                                       Ski             Golf           Fishing

                                                       Guard       Guard       Guard

contribution margin per                 $11.67      $21.43       $6.36

lbs. of pellets

2b)

Golf guard since its contribution margin per lb. of pellets is much higher than the rest of the products

2c)

fishing guard since its contribution margin per lb. of pellets is much lower than the rest of the products

3)

Golf Guard ($150)

4 0
2 years ago
If real income rises from $5 trillion to $6 trillion while the price level increases by 10 percent, it follows that nominal inco
AVprozaik [17]

The nominal income will increase with the increase in the real income.

<u>Explanation:</u>

Real income of the person is the buying or the purchasing capacity of the person. It is the nominal income adjusted for inflation. If there is an increase in the real income more than the increase in the level of the prices at a particular period of time, it means that the level of nominal income of the person will also increase.

7 0
2 years ago
"MMP Incorporated generated FCF in the most recently completed year of $780,000. We expect FCF to grow by 10% in year 1, 8% in y
dimaraw [331]

Answer:

The value per share of common stock today is $23.94

Explanation:

To calculate the worth of the stock today, we first need to calculate the value of firm using FCF and then calculate the value of equity by deducting the market value of debt and preferred stock from the value of firm. Then we will divide the value of equity by the number of common stock shares.

Value of firm will be calculated using the discounted cash flows model approach. The value of firm will be,

Value of firm = 780000 * (1+0.1) / (1+0.13)   +   780000 * (1+0.1) * (1+0.08) / (1+0.13)^2  +  780000 *(1+0.1)*(1+0.08)*(1+0.07) / (1+0.13)^3  +  

[ 780000 *(1+0.1) *( 1+0.08) *(1+0.07) *(1+0.06)) / (0.13 - 0.06)] / (1+0.13)^3

Value of firm = $12,577,754.16

Value of equity = $12,577,754.16  -  (2000000 + 1000000)  = $9,577,754.159

Value per share = $9,577,754.159 / 400000

Value per share = $23.944 rounded off to $23.94

6 0
2 years ago
A useful way of standardizing financial statements is to choose a _______ year and then express each item relative to that amoun
liberstina [14]

A useful way of standardizing financial statements is to choose a base year and then express each item relative to that amount.

Below, this is further discussed.

<h3>Financial statements: What are they?</h3>

Financial statements, in general, are official records of the financial activity and condition of a company, an individual, or another organization. Structured and simple-to-comprehend presentations of pertinent financial data are made.

In summary, Selecting a base year and then expressing each item according to that sum is a helpful method for standardizing financial reporting.

Explore more about Financial statements

brainly.com/question/14951563

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6 0
1 year ago
This year Army purchased $3,700 of equipment for use in her business. However, the machine was damaged in a traffic accident whi
Andreas93 [3]

Answer: Check explanation

Explanation:

a. Since Amy bought the equipment for $3700 and sold the equipment for $690, the amount that Amy can deduct for the loss of the equipment will be:

= $3700 - $690

= $3010

b. Here, the amount that Army can deduct for the loss of equipment will be the lesser of the amount Amy bought the equipment which is $3700 or the cost of the repair which is $1370.

Therefore, $1370 will be deducted.

c. After the accident, Army could not replace the equipment so she had the equipment repaired for $4,300. What amount can Army deduct for the loss of the equipment?

Here, the amount that Army can deduct for the loss of equipment will be the lesser of the amount Amy bought the equipment which is $3700 or the cost of the repair which is $4300.

Therefore, $4300 will be deducted.

4 0
3 years ago
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