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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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The following selected transactions were completed by Capers Company during October of the current year: Oct. 1. Purchased merch
masha68 [24]

Answer:

Capers Company

Journal Entries:

Oct. 1: Debit Inventory $14,448

Credit Accounts Payable (UK Imports Co.) $14,448

To record the purchase of merchandise, terms FOB destination, n/30.

Oct. 3: Debit Inventory $9,950

Credit Accounts Payable (Hoagie Co.) $9,950

To record the purchase of merchandise, terms FOB shipping point, 2/10, n/eom.

Oct. 4: Debit Inventory $13,650

Credit Accounts Payable (Taco Co.) $13,650

To record the purchase of merchandise, terms FOB destination, 2/10, n/30.

Oct. 6: Debit Accounts Payable (Taco Co.) $4,550

Credit Inventory $4,550

To record the return of goods on account.

Oct. 13: Debit Accounts Payable (Hoagie Co.) $9,950

Credit Cash $9,751

Credit Cash Discounts $199

To record the payment on account.

Oct. 14: Debit Accounts Payable (Taco Co.) $9,100

Credit Cash $8,918

Credit Cash Discounts $182

To record the payment on account.

Oct. 19: Debit Inventory $27,300

Credit Accounts Payable (Veggie Co.) $27,300

To record the purchase of merchandise, terms FOB shipping point, n/eom.

Oct. 19: Debit Freight-in $400

Credit Cash $400

To record the payment of freight-in.

Oct. 20: Debit Inventory $22,000

Credit Accounts Payable (Caesar Salad Co.) $22,000

To record the purchase of merchandise, terms 1/10, n/30.

Oct. 30: Debit Accounts Payable (Caesar Salad Co.) $22,000

Credit Cash $21,780  

Credit Cash Discounts $220

To record the payment on account.

Oct. 31: Debit Accounts Payable (UK Imports Co.) $14,448

Credit Cash $14,448

To record the payment on account.

Oct. 31: Debit Accounts Payable (Veggie Co.) $27,300

Credit Cash $27,300

To record the payment on account.

Explanation:

a) Data and Analysis:

Oct. 1: Inventory $14,448 Accounts Payable (UK Imports Co.) $14,448; terms FOB destination, n/30.

Oct. 3: Inventory $9,950 Accounts Payable (Hoagie Co.) $9,950; terms FOB shipping point, 2/10, n/eom.

Oct. 4: Inventory $13,650 Accounts Payable (Taco Co.) $13,650; terms FOB destination, 2/10, n/30.

Oct. 6: Accounts Payable (Taco Co.) $4,550 Inventory $4,550

Oct. 13: Accounts Payable (Hoagie Co.) $9,950 Cash $9,751 Cash Discounts $199

Oct. 14: Accounts Payable (Taco Co.) $9,100 Cash $8,918 Cash Discounts $182

Oct. 19: Inventory $27,300 Accounts Payable (Veggie Co.) $27,300; terms FOB shipping point, n/eom.

Oct. 19: Freight-in $400 Cash $400

Oct. 20: Inventory $22,000 Accounts Payable (Caesar Salad Co.) $22,000; terms  1/10, n/30.

Oct. 30: Accounts Payable (Caesar Salad Co.) $22,000 Cash $21,780  Cash Discounts $220

Oct. 31: Accounts Payable (UK Imports Co.) $14,448 Cash $14,448

Oct. 31: Accounts Payable (Veggie Co.) $27,300 Cash $27,300

5 0
2 years ago
This organizational structure violates the unity of
Varvara68 [4.7K]
<h2>Question:</h2>

This organizational structure violates the unity of

command principles because of dual reporting

relationship.

<h2>Answer:</h2>

<u>C</u><u>.</u><u> </u><u>Matrix</u><u> </u><u>Organization</u><u> </u>

<h2>Explanation:</h2>

That's my opinion and I hope it helps ^_^

<h2><u>#CARRYONLEARNING</u><u> </u></h2><h2><u>#STUDYWELL</u><u> </u></h2>
4 0
3 years ago
Read 2 more answers
Timothy Gates and Prada Singh decide to form a new company, TGPS LLC (a multimember LLC that will report its operations as a par
Sliva [168]

Answer:

Timothy has an excess business loss of $ 0. He may use $ 290,000 of his share of the $580,000 LLC business loss to offset non-business income .

Prada has an excess business loss of $40,000. She may use $250,000  of her share of the $580,000 LLC business loss to offset non-business income .

Any excess business loss is treated as part of the treated as part of the taxpayer's net operating loss (NOL) carry-forward.

Explanation:

1. Nonincome loss is claimed when there is no income and therefore no tax will be deducted. The is conditional on the provision of the details of income on which non-income loss is claimed.

2. Taxpayer's net operating loss (NOL) carry-forward is relevant here because it is often used to offset the tax payments in other tax period through the tax authority when allowable deductions is higher than taxable income.

8 0
3 years ago
When current government expenditures exceed current tax revenues and the economy is achieving full employment: Group of answer c
user100 [1]

Answer: the full-employment budget has a deficit

Explanation:

When current government expenditures exceed current tax revenues and the economy is achieving full employment, it means that the full-employment budget has a deficit.

This means that the government of that particular economy is spending more than what it generates. This lead to the deficit that has been incurred.

3 0
3 years ago
If the demand for a good falls by less than the supply of the good rises, then the good’s equilibrium price will __________ and
STatiana [176]

If the demand for a good falls by less than the supply of the good rises, then the good’s equilibrium price will fall and its equilibrium quantity will rise.
According to the law of demand indicates that as price increases, consumers are willing and able to purchase less so the quantity demanded will fall and cause the downward sloping demand curve. So when price falls, consumers are willing and able to purchase more.
6 0
3 years ago
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