Answer:
$11,250
Explanation:
Deferred tax asset = Warranty expense in excess of deductible amount * Tax rate
Deferred tax asset = $25,000 * 25%
Deferred tax asset = $6,250
Deferred Tax liability = Depreciation in excess of financial statement amount * Tax rate
Deferred Tax liability = $70,000 * 25%
Deferred Tax liability = $17,500
Non-Current deferred tax liability = $17,500 - $6,250 = $11,250
Hence, Fieval should report $11,250 as the deferred income taxes in its 2021 balance sheet
Answer:
If we add up the debit we got: 260,000 + 116,000 = 376,000
adding the credit we also get the same amount:
260,000 + 116,000 = 376,000
<u><em>the accounting equation will be:</em></u>
Assets 376,000 = Liabilities 116,000 + Equity 260,000
Explanation:
CASH
DEBIT CREDIT
260,000
EQUIPMENT
DEBIT CREDIT
116,000
ACCOUNTS PAYABLE
DEBIT CREDIT
116,000
COMMON STOCK
DBEIT CREDIT
260,000
Answer:
D. When ITQs are used, no one has an incentive to cheat and exceed the quota.
Explanation:
As ITQs (individual transferable quotas) were initially created by the government to regulate an above all, social affair, which is related to the share in the total allowable catch of fish (species).
Since some of the fishermen have lower and some have higher marginal costs of "producing" fish, they trade ITQ's between themselves, with those who have high marginal costs selling ITQs to those that have low marginal costs. Also, the marginal private cost now becomes determined by the initial marginal private cost of the fish, plus the <u>price of the ITQ</u>. Then, it becomes known as the marginal social cost.
The equilibrium for the ITQ price is the difference between the <em>marginal social benefit</em> and the marginal cost. With the base marginal private cost becoming the marginal social cost, no one has the incentive to exceed the quota, as that would make the marginal cost go higher than the price, and the marginal profit lower. This notion creates the equality between self-interest and social interest.
Answer:
B. $2,600
Explanation:
The computation of the net rental income is shown below:
= Monthly rental payments × total number of months in a year - (utilities + maintenance & repairs + insurance) × percentage - depreciation expense
= $550 × 12 months - ($3,600 + $900 + $500) × 50% - $1,500
= $6,600 - $2,500 - $1,500
= $2,600
Since only one apartment is on rent so we considered the expenses of the building at 50% not full value and the same is applied above
