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Leokris [45]
3 years ago
12

Due to an error in computing depreciation expense, Crote Corporation understated accumulated depreciation by $64 million as of D

ecember 31, 2018. Crote has a tax rate of 40%. Crote's retained earnings as of December 31, 2018, would be (Round million answer to 2 decimal places.):
Multiple Choice

Overstated by $64.00 million.

Overstated by $38.40 million.

Understated by $64.00 million.

Understated by $38.40 million.
Business
2 answers:
Mekhanik [1.2K]3 years ago
7 0

Answer

Retained earnings will be overstated by $38.40 million

Explanation:

The overstatement of retained earnings by this amount arises from the fact that if the depreciation of $64 million had been charged, the charge will have been tax deductible at 40% thus the amount overstated if (1-40%) x $64m =$38.4m.

posledela3 years ago
7 0

Crote's retained earnings as of December 31, 2018, would be overstated by \$38.40 \text{ million}

<u>Explanation: </u>

Overstated = The amount is more than it ought to be = Very high

Accumulated depreciation =  \$64 \text{ million}

Tax rate = 40\%

In round 2 decimal places = 0.40

Right now, revenue is underestimated because cash was removed due to error of the depreciation costs

Round million on December 31, 2018 as 2 decimal places = \rightarrow \frac{64}{2} = 38

In decimals = \$38.40 \text{ million}

If your initial inventory has been overstated, you overestimate the cost of sold items, and underestimate net profit and net earnings. When the inventory ends in excess, the costs of the goods are understated and the gross profit and net profit is excessively increased.  

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The following selected information was extracted from the 20x1 accounting records of Lone Oak Products:
joja [24]

Answer:

1. $513,000

2. $913,200

3. $926,400

4. $154,420

5.11340 Units

Explanation:

1. Calculation for Lone Oak’s manufacturing overhead for the year.

Manufacturing overhead

Indirect labor 109,000

Building depreciation (80000*75%) 60,000

Other factory cost 344,000

Manufacturing overhead $513,000

2. Calculation for Lone Oak’s cost of goods manufactured.

First step is to calculate the Direct material used

Direct material used = 15,800+175000-18200

Direct material used= 172,600

Second step is to calculate the Total manufacturing cost

Total manufacturing cost = 172,600+254,000+513,000

Total manufacturing cost= 939,600

Now let calculate the Cost of goods manufactured

Cost of goods manufactured = 35,700+939,600-62100

Cost of goods manufactured = $913,200

3. Compution for the company’s cost of goods sold.

Cost of goods sold = 111100+913,200-97900

Cost of goods sold = $926,400

4. Calculation to Determine net income for 20x1, assuming a 30% income tax rate.

Net income :

Sales 1495000

Cost of goods sold -926,400

Gross profit 568,609

Selling and administrative expense (133000+20000+195000) 348000

Profit 220,600

Tax 30% 66,180

Net income $154,420

(220,600-66,180)

(25%*80,000=20,000)

5. Calculation to Determine the number of completed units manufactured during theyear.

No of unit completed = 1190+(1,495,000/$130 per unit)-1350

No of unit completed =1190+11500-1350

No of unit completed = 11340 Units

7 0
3 years ago
Suppose you and a classmate are playing a game where your classmate proposes a division of​ $1.00. ​ Then, you either accept or
pochemuha

Answer: The correct answers are "A. Accept" and "$ 0.01".

Explanation: Given that we talk about optimal strategy when maximizing the expected profit by the player:

In the first case It is convenient to accept the proposal and keep $ 0.12, instead of rejecting it and running out of nothing.

And in the second case it is convenient to give the classmate as little as possible so that he accepts and we have a greater profit.

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3 years ago
During the preparation of the bank reconciliation for Building Concepts Co., Joel Kimmel, the assistant controller, discovered t
Andrews [41]

Answer:

Joel is behaving in a totally unprofessional & unethical manner

Explanation:

As assistant controller, Joel Kimmel's job specification & responsibility includes financial statement preparation & combination, putting of internal controls in place, detailed analysis & reporting of cost variance, acts as the go-between with external auditors amongst other such responsibilities.

As such, when Joel discovered the cost discrepancy during the reconciliation, it was actually his responsibility to call the bank's attention to the variance. This is something that clearly falls under his job specification & can be considered as neglect of duty. Joel's decision defeats the very purpose of bank reconciliation, which is to correct any such discrepancy & to the ensure the rectification of transactions. Most importantly, the decision Joel plans to take is very unethical & is against standard accounting practices

We can therefore, say that Joel's decision is thoroughly unethical & unprofessional

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3 years ago
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How to report sale of inherited property on tax return?
IrinaVladis [17]

Your share of the sales proceeds from the sale of a home you had inherited should be reported on Schedule D in the Investment Income section of TaxAct. You would enter "Inherited" as the date the property was acquired, then enter the cost basis, date of sale, and the sales proceeds.

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Kayo initiates and encourages innovation, fixes unforeseen problems, sets priorities about the use of resources, and works with others to accomplish organizational goals. together, these responsibilities comprise a decisional type of managerial role.

<h3>What is the Decisional managerial role?</h3>

Decisional roles are defined as managerial roles where managers are responsible for making calculated and timely decisions for the company's welfare.

To know more about the Decisional managerial role go to the given link:brainly.com/question/14529237

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