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DochEvi [55]
3 years ago
11

TarHeel Corporation reported pretax book income of $1,000,000. During the current year, the net reserve for warranties increased

by $100,000. In addition, tax depreciation exceeded book depreciation by $200,000. Finally, TarHeel subtracted a dividends received deduction of $50,000 in computing its current-year taxable income. TarHeel's accounting effective tax rate is:
Business
1 answer:
ddd [48]3 years ago
5 0

Answer:

TarHeel's accounting effective tax rate is 19.95%

Explanation:

The effective tax rate is the hypothetical tax rate adjusted for the tax cost or benefit from permanent difference.

the dividend received deduction reduces the Effective tax rate

= 50,000*21%

= 10,500/1,000,000

= 1.05%.

Effecttive tax rate is 21% - 1.05% = 19.95%

Therefore, TarHeel's accounting effective tax rate is 19.95%

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Newton Corporation was organized on January 1, 20X7. On that date, it issued 200,000 shares of its $10 par value common stock at
pychu [463]

Answer:

$3,290,000

Explanation:

Calculation to determine total stockholders' equity of Newton as of December 31, 20X9

200,000 shares issued for $15$3,000,000

(200,000 shares* $15)

Add Net income $750,000

Less Dividends ($380,000)

Less Purchased 12,000 treasury shares at $12 ($144,000)

(12,000 treasury shares*$12)

Add Decrease in treasury stock account $96,000

(8,000 shares *$12)

Less Decrease in additional paid-in capital ($32,000)

[(8,000 shares *$12)-(8,000 shares *$8])

Total Stockholders’ equity $3,290,000

Therefore total stockholders' equity of Newton as of December 31, 20X9 is $3,290,000

5 0
3 years ago
On December 28, 2021, Tristar Communications sold 10 units of its new satellite uplink system to various customers for $25,000 e
lina2011 [118]

Answer:

The income before tax will be affected by discounts in 2021.

Explanation:

The terms 1/10, n/30 imply that payment made within 10 days will enjoy 1% discount while full payment has to be made within 30 days if the payment was not made within 10 days.

Since it is assumed in the question that all customers paid the net-of-discount amount on January 6, 2022, that means they all paid within 10 days and enjoyed 1% discount. The anticipated discount allowed is calculated as follows:

Anticipated discount allowed = 1% * ($25,000 * 10) = 1% * $250,000 = $2,500

Since the sales was made on December 28, 2021, the anticipated discount allowed will reduce the 2021 income before tax by $2,500.

This is based on the Matching Concept which states that revenues and their related expenses must be recognized in the accounting period.

Therefore, the income before tax will be affected by discounts in 2021.

6 0
3 years ago
On October 1st, a company received $30,000 in cash and a building worth $200,000, and in return, issued common stock to an inves
Lilit [14]

Answer:

1. Journal:

October 1:

Debit Cash $30,000

Debit Building $200,000

Credit Common Stock $230,000

To record the receipt of cash and building for common stock.

2. T-accounts:

Cash Account

Date  Description            Debit       Credit        Balance

Oct. 1 Common Stock  $30,000                      $30,000

Building Account

Oct. 1 Common Stock  $200,000                  $200,000

Common Stock

Oct. 1 Cash                                    $30,000     $30,000

Oct. 1 Building                            $200,000   $200,000

Explanation:

Journal entries show the accounts to be debited and credited respectively.  They are the initial records of a business transaction.  They can be used to post any transaction, make adjustments to the accounts, and close the accounts at the end of the accounting period.

7 0
3 years ago
Common stock holders: Group of answer choices have one vote in the election of how the company operates. are last in line to rec
enot [183]

Answer:

are last in line to receive income.

Explanation:

Common stock holders are referred to as the owners of the company. They own shares that gives them the right to vote in a company's general meeting, receive dividends, and they have the right to get newly issued shares in the company before others.

However they are also called unsecured creditors of the company because when the business makes income they are the last in line to receive dividends if any remains.

Also in the case of bankruptcy preference share holders and other creditors are paid first. Common share holders are paid last.

5 0
2 years ago
Personnel at a decision point in their careers can receive an overview of their veteran's benefits from what source?
Ratling [72]

The correct answer is; Transition Goals Plans Success Program.

Further Explanation:

The Transition Goals Plans Success Program is a resource that helps military members and their families prepare for life outside of the military. Men and women from all armed services departments are eligible to use this program to help the transitioning to a civilian citizen go smoothly.

The Transition Goals Plans Success Program starts as soon as someone enters the military and each milestone in their career. A few things that the program helps with are;

  • resume writing
  • career advice
  • military transition
  • interview tips
  • pursuing additional education

The Transition Goals Plans Success Program now has an app that families can download and have more access to resources.

Learn more about military personnel at brainly.com/question/7223998

#LearnwithBrainly

3 0
3 years ago
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