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Oksanka [162]
3 years ago
13

As a result of using accelerated depreciation for tax purposes, The Amin Corporation reported $372 million income tax expenses i

n its income statement, while the actual amount of taxes paid by the company was $412 million. How did these tax transactions affect the company's balance sheet?
a) increase deferred tax liability by $40 million

b) decrease deferred tax assets by $372 million

c) decrease retained earnings by $372 million

d) decrease cash by $372 million

e) both c&d
Business
1 answer:
Elena-2011 [213]3 years ago
7 0

Answer:

correct option is c) decrease retained earnings by $372 million

Explanation:

given data

income tax expenses = $372 million

actual amount of taxes paid = $412 million

solution

we know that in deferred tax asset taxable income is higher than the financial income

while in deferred tax liability taxable income is lower than the financial income

and we have given expense report is $372 million

and tax paid is $412 million

so the transaction reduce retained earning with same amount

so here correct option is c) decrease retained earnings by $372 million

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Sam, a third-grader, really likes to look for interesting bugs with other people during recess. Each of Sam's friends offers to
andre [41]

Answer: 1. No.

2. Yes.

Explanation:

Price Discrimination is a pricing strategy where suppliers/producers or sellers sell a good to different people at different prices depending largely on their preference and/or capacity to pay for the commodity i.e, if you want it more, you are charged more.

1. Johnny did not like to play Hopscotch, so offering Suzie one day of Hopscotch for two days of bug hunting is fair and no price discrimination occured as he did not offer these terms to someone else who's game he did not like.

2. Sam knew that Johnny really liked playing Slaps so he leveraged on that and offered him more expensive terms so to speak than he did to Bill even though he liked playing the both games equally. This means that he charged Johnny more than Bill simply because Johnny liked and preferred his game alot which is Price discrimination.

4 0
3 years ago
A company's flexible budget for the range of 35,000 units to 45,000 units of production showed variable overhead costs of $2 per
Gnom [1K]

Answer:

c. $3,200 favorable.

Explanation:

We know that

Total controllable cost variance = Budgeted overhead cost - actual overhead cost

where,

Budgeted overhead cost =  Variable overhead + Fixed overhead

where,

Variable overhead = 40,000 units × $2 = $80,000

And, the fixed overhead = $72,000

So, the budgeted overhead = $152,000

And, the actual one is $148,800

So, the total controllable cost variance would be

= $152,000 - $148,800

= $3,200 favorable

7 0
3 years ago
To ensure that work gets done, Jonah engages in initiating structure by assigning tasks to members of his department, creating s
pashok25 [27]
The answer is motivating everyone to do a good job by promoting organizational goals
6 0
3 years ago
After years of using a mass marketing strategy, Digital Print Shops has responded to new competition from national chain stores
Ket [755]

Answer:

Niche Marketing

Explanation:

According to my research on different marketing strategies, I can say that based on the information provided within the question Digital's strategy is known as Niche Marketing. Like mentioned in the question this strategy emphasized focusing on small audiences in a very specific category. Which is what Digital is doing by focusing on the smaller market segments that the bigger competition is completely ignoring.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

8 0
3 years ago
Fitzgerald Tech owns 20,000 shares of Buchanan Industries, which it purchased for $450,000 in 2016. On March 6, 2020, Fitzgerald
cupoosta [38]

Answer:

The debit to the retained earning should be $750,000 for this transaction because that is the market value of the asset to be distributed as dividend.

Explanation:

Property dividend is a form of dividend payout that involves distribution of company`s assets to equity holders as a form of return. These assets can be inventory, marketable securities or investment in a subsidiary.

For this distribution to be formal, it must be approved by the board of directors of the company. After approved and declared, the accounting entries can now be passed.

The accounting entries needed are:

Debit: Retained Earnings with the amount of the asset distributed.

Credit: Dividend Payable with the amount of the asset distributed.

It is important to note that  the market value of asset to be distributed should be considered i.e the market value of the asset must be recognized in the book. The difference in book value and market value of the investment will be recognized in respective asset ledger account prior transfer to retained earnings.So that the market value of the investment is recognized on the debit side of retained earnings

In the case of Fitzgerald, $750,000 will be debited to retained earnings since it is the market value of the asset to be distributed.

8 0
3 years ago
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