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inna [77]
3 years ago
11

Assume that Puritan Corp. operates in an industry for which NOL carryback is allowed. Puritan Corp. reported the following preta

x accounting income and taxable income for its first three years of operations: 2020 $ 358,000 2021 (600,000 ) 2022 728,000 Puritan's tax rate is 36% for all years. Puritan elected a loss carryback. As of December 31, 2021. Puritan was certain that it would recover the full tax benefit of the NOL that remained after the operating loss carryback. What did Puritan report on December 31, 2021, as the deferred tax asset for the NOL carryforward
Business
1 answer:
timama [110]3 years ago
6 0

Answer:

$87,120

Explanation:

The calculation of the deferred tax asset for the NOL carryforward is given below:

= (Year 2021 loss - Year 2022 income) × tax rate applicable for all years

= ($600,000 - $358,000) × 36%

= $242,000 × 36%

= $87,120

Since in a year 2021 it is a loss and the income in year 2022 that is to be adjusted and the same is considered in the computation part

Hence,  the deferred tax assets for the NOL carryforward is $87,120

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In the storming stage of team development, team members will have accepted team goals, be operating as a unit, and, as indicated
yKpoI14uk [10]

Answer:

B) False

Explanation:

The storming stage is the second stage of team development. At this stage, the group members should start gaining each other's trust. They are generally more willing to open up and express their views and opinions. Sometimes conflicts can result from different members' opinions, and power struggle occur within the team.

4 0
3 years ago
Weighted average cost of capital American​ Exploration, Inc., a natural gas​ producer, is trying to decide whether to revise its
saw5 [17]

Answer:

American​ Explorations current​ WACC is 9%

Explanation:

The computation of WACC is shown below:

= (Cost of equity × equity percentage) + (after-tax cost of debt × debt percentage)

= (12% × 50%) + (6% × 50%)

= 6% + 3%

= 9%

Since we have to compute only current WACC so we considered the 50-50 ratio. Hence, we ignored 70% cost of debt

WACC shows a relationship between debt, equity and the preferred stock.

3 0
3 years ago
To correct for positive externalities, the government should:_________
liberstina [14]

Answer:

e

Explanation:

A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.

3 0
3 years ago
What if Jennifer were to invest $2.750 today, compounded semiannually, with an annual interest rate of 5.25%. What amount of int
KIM [24]

Answer:

d. $146.27

Explanation:

For computing the interest earned, first we have to calculate the future value which is shown below:

Future value = Present value × (1 + rate)^number of years

where,

Present value = $2,750

Rate = 5.25% ÷ 2 = 2.625%

Number of years = 1 year × 2 = 2 years

So, the future value

= $2,750 × (1 + 2.625%)^2

= $2,750 × 1.0531890625

= $2,896.27

Now the interest earned would be

= $2,896.27 - $2,750

= $146.27

7 0
3 years ago
EBook
KonstantinChe [14]

Answer:

Cost Flow Methods

Gross profit and ending inventory on April 30 using:

                                                          Gross Profit     Ending Inventory

(a) first-in, first-out (FIFO)                     $75                   $546

(b) last-in, first-out (LIFO)                       $71                   $542

(c) weighted average cost method     $73                   $544

Explanation:

a) Data and Calculations:

Item Beta   Cost

April 2  Purchase   $270

April 15  Purchase   272

April 20  Purchase 274

Total                      $816

Average cost per unit = $272  ($816/ 3 units)

Assume that one unit is sold on April 27 for $345

Gross profit and ending inventory on April 30 using:

                                                          Gross Profit            Ending Inventory

(a) first-in, first-out (FIFO)                 $75 ($345 - $270)  $546 ($816 - $270)

(b) last-in, first-out (LIFO)                   $71 ($345 - $274)   $542 ($816 - $274)

(c) weighted average cost method $73 ($345 - $272)  $544 ($816 - $272)

Ending inventory = Cost of goods available for sale Minus Cost of goods sold

Gross profit = Sales Minus Cost of goods sold

3 0
3 years ago
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