Answer:
2) the taxpayer shows negligence or disregard of the rules or regulations, causing an underpayment.
Explanation:
When any taxpayer shows some negligence or if they disregard the rules and the regulations, causing an underpayment, then it leads to a penalty for the disregard or the negligence.
Also, when a taxpayer intentionally understates his or her tax by a larger of $5000 or a 10% of his / her correct tax, then it is an accuracy related penalty.
And, also the information related penalties which are levied for failure of taxpayer to pay the amount of tax owed by due date and also failure to filing the return by the due date.
Thus option (2) is correct.
Answer:
Depreciation and amortization is $7.5 million
Explanation:
If the tax rate is 40%, then the net income is 60%
tax expense=net income*tax rate/60%=$5.4 million/60%*40%=$3.6 million
Depreciation and amortization=EBITDA-tax-interest-net income
EBITDA is $22.5 million
interest is $6 million
net income is $5.4 million
Depreciation and amortization=$22.5 milion-$6 million-$3.6 million-$5.4 million
Depreciation and amortization=$7.5 million
Answer:
b) $1,950,000
Explanation:
Value of gift cards redeemed with those whose date of redemption has passed, will both have the amount to revenue out of $2,000,000 of the gift cards sold.
Total gift card revenue to be recognized in 2016 = $1,800,000 + $150,000
Total gift card revenue to be recognized in 2016 = $1,950,000
One of the disadvantages of issuing stock is the fact that it dilutes the earnings for shareholders.
The more shares there are, the less earnings.
C. a and b is the correct answer
