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4 years ago

Eckert Corporation's partial income statement after its first year of operations is as follows:

Business

1 answer:

Arte-miy333 [17]4 years ago

4 0

Answer:

A. $2,700,000

Explanation:

For computing the deduction amount for depreciation tax, first we have to calculate the total amount of deferred tax amount which is shown below:

Total Deferred tax amount = Deferred tax × (percentage value ÷ tax rate)

= $90,000 × (100% ÷ 30%)

= $300,000

And the depreciation expense in this year is $2,400,000

So, the total amount deducted would be

= $300,000 + $2,400,000

= $2,700,000

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Madison Finance has a total of $20 million earmarked for homeowner loans and auto loans, where x is homeowner loans in millions

Deffense [45]

Answer:

Ans. Car loans must be $4,000,000 and Home loans $16,000,000 in order to use all the conditions in the problem. Return= $2,000,000

Explanation:

Hi, well, you need to make sure to get as many car loans as the conditions of the problem allows you, since it returns 14%.

I used MS Excel solver to find this result, please download the excel spreadsheet attached to this answer.

Best of luck.

Download xlsx

7 0

3 years ago

What type of arrangement(s), if any, would avoid double taxation for Wendall's and Shirley's endeavor? Choose the best answer if

musickatia [10]

Answer:

An s corporation or a limited liability company, but not a corporation.

Explanation:

5 0

3 years ago

Suppose you invest $20,000 by purchasing 200 shares of Abbott Labs (ABT) at $50 per share, 200 shares of Lowes Companies, Inc. (

nikitadnepr [17]

Answer:

Portfolio return = 0.035 or 3.5%

Explanation:

The portfolio return is a function of the weighted average of individual stocks' returns that form up the portfolio. The formula to calculate the portfolio return is as follows,

Portfolio return = wA * rA + wB * rB + ... + wN * rN

Where,

w represents the weight of each stock in the portfolio
r represents the return of each stock

First we need to calculate the investment of each stock,

Abbott = 200 * 50 = $10000

Lowes = 200 * 30 = $6000

Ball = 100 * 40 = $4000

Portfolio return = (10000 / 20000) * -0.10 + (6000/20000) * 0.20 +

(4000/20000) * 0.125

Portfolio return = 0.035 or 3.5%

4 0

3 years ago

FIll in the appropropriate numeric value in each of the blank cells below. This question is based on the balance sheet equation:

NNADVOKAT [17]

Answer and Explanation:

The computation is shown below:

Account Column 1 Column 2 Column 3

Cash 600 2000 1000

Inventory 2400 2500 4000

Supplies 1000 500 1000

Equipment 9000 5000 6000

Total Assets 13000 10000 12000

Loan Payable 5000 4000 10000

Common Stock 8000 6000 2000

Total L & OE 13,000 10000 12000

Working notes:

For Column 1:

As we know that

Total asset = Cash +Inventory + Supplies + Equipment

= 600 + 2400 + 1000 + 9000

= 13000

Liabilities + Equity = 5000 + 8000

= 13000

For Column 2:

Total Asset = Cash + inventory + supplies +equipment

10000 = 2000 + 2500 + 500 + Equipment

Equipment = 10000 - 2000 - 2500 -500

= 5000

Total L & OE = Loans payable + common stock

10000 =4000 + common stock

Common Stock = 10000 - 4000

= 6000

For Column 3:

Total L&OE = 12000

As we know that

Total Assets = Total L & OE

So, Total Assets = 12000

Total Asset = Cash + Inventory + Supplies + Equipment

12000 = Cash + 4000 + 1000 + 6000

Cash = 12000 - 4000 - 1000 - 6000

Cash = 1000

Total L & OE = Loan payable +Common Stock

12000 = Loan Payable + 2000

Loan Payable = 10000

4 0

3 years ago

A computer company had $3,000,000 in research and development costs. Before recording these costs, the net income of the company

JulijaS [17]

Answer:

Net income of the company accounted for $400,000

Explanation:

Net income is the income or the amount of residual income from the earnings after deducting all the expense or cost from the sales.

The net income or loss of the company accounted for is computed as:

Net Income or Loss = Net Income - Research and Development cost

where

Net Income amounts to $3,400,000

Research and Development cost amounts to $3,000,000

So, putting the values above:

Net Income or loss = $3,400,000 - $3,000,000

Net Income = $400,000

7 0

3 years ago