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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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Answer:

B) requires that dividends not paid in any year must be made up in a later year before dividends are distributed to common shareholders.

Explanation:

In cumulative feature of preferred stock, the preference shareholders have priority of shareholders over common shareholders in the year subsequent to the year in which the dividend is not distributed.  All other options given in the question are incorrect.

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Which of the following is correct? Group of answer choices Risk-averse people will not hold stock. Diversification cannot reduce
pshichka [43]

Answer: The larger the percentage of stock in a portfolio, the greater the risk, but the greater the average return.

Explanation:

Stock in general is more risky than most financial instruments but this risk is accompanied with greater returns. This is why it is generally advisable to diversify stock in a portfolio.

As already mentioned, stock is risky but rewarding. It therefore follows that the more stock is in a portfolio, the risker the portfolio but the greater the average return.

6 0
3 years ago
Which one of the statements below is true? Deposits in transit are deducted from the balance per the bank statement, and outstan
NARA [144]

Answer:

Option D. The deposits in transit are added to the balance per the bank statement, and outstanding checks are deducted from the balance per the bank statement during the bank reconciliation process.

Explanation:

The reason is that the bank balance as per business books are kept updated according to their knowledge of the transaction verified and bank keeps its business books updated according to its knowledge of the verified transactions.

When the customer presents the check to the business, the business increases its bank balance as per its books and at this point the bank doesn't know whether there is any monetary transaction actually taken place or not. So the bank hasn't altered the business bank balance in their books of accounts. This means the bank is overstated by the deposit in transit and for reconciliation sake we will have to add it to balance as per bank to tally it with the balance as per the business.

Similarly the Outstanding checks which is also known as unpresented checks are the money not yet withdrawn from the business bank account but is actually deducted from the bank balance as per the business books because the payments that the business makes actually records it. This means that the bank balance as per business books are lower than the balance as per the bank and for reconciliation sake we will have to deduct it from the balance as per bank to tally it with the balance as per the business.

5 0
3 years ago
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What happens to the total expenditures for a product with elastic demand when its price goes up?
Afina-wow [57]

Answer:

Elasticity is more than One (Ed > 1): When demand is elastic, a fall in the price of a commodity results in increase in total expenditure on it. On the other hand, when price increases, total expenditure decreases. It means, in case of highly elastic demand, price and total expenditure move in the opposite directions.

Explanation:

hope it helps yoou

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