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3 years ago

8

Too Young, Inc., has a bond outstanding with a coupon rate of 7 percent and semiannual payments. The bond currently sells for $1

,898 and matures in 16 years. The par value is $2,000. What is the company's pretax cost of debt

1 answer:

Lapatulllka [165]3 years ago

5 0

Answer:

Explanation:

I would need the pic attachment for this question in-order to be able to attempt the question.

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Taxable income and pretax financial income would be identical for Skysong Co. except for its treatments of gross profit on insta

inessss [21]

Answer:

See the journal entry below.

Explanation:

Before preparing the journal entry, the following are calculated first:

Income tax expense in 2019 = (Taxable income in 2019 * Tax rate in 2019) + (Taxable income in 2020 * Tax rate in 2020) + (Taxable income in 2021 * Tax rate in 2021) = ($158,000 * 40%) + ($195,000 * 45%) + ($92,100 * 45%) = $193,395

Deferred tax liability in 2019 = (Taxable income in 2020 * Tax rate in 2020) + (Taxable income in 2021 * Tax rate in 2021) = ($195,000 * 45%) + ($92,100 * 45%) = $129,195

Income tax payable in 2019 = Taxable income in 2019 * Tax rate in 2019 = $158,000 * 40% = $63,200

Income tax payable in 2020 = Taxable income in 2020 * Tax rate in 2020 = $195,000 * 45% = $87,750

Income tax payable in 2021 = Taxable income in 2021 * Tax rate in 2021 = $92,100 * 45% = $41,445

The journal entry will look as follows:

<u>Date General journal Debit ($) Credit ($) </u>

31 Dec 2019 Income tax expense 193,395

Deferred tax liability 129,195

Income tax payable 63,200

<u><em> (To record income tax payable.) </em></u>

31 Dec 2020 Deferred tax liability 87,750

Income tax payable 87,750

<u><em> (To record income tax payable.) </em></u>

31 Dec 2021 Deferred tax liability 41,445

Income tax payable 41,445

<u><em> (To record income tax payable.) </em></u>

5 0

2 years ago

You have a loan outstanding. It requires making three annual payments at the end of the next three years of $3000 each. Your ban

Oksana_A [137]

Answer:

The final payment would be of amount $9000

Explanation:

The keywords of the question state that the bank needs an equal amount of money by both of the payment procedures. Hence, no matter which payment method I choose on the outstanding loan, the bank would need a sum of 3x3000 = $9000

5 0

3 years ago

Android Products, Inc., agreed to accept a $1,000, one-year, 10 percent note from C. Mate. On its maturity date of December 16,

kodGreya [7K]

Answer:

Dr Cash $1,100

Cr Notes receivable $1000

Cr Interest revenue $100

Explanation:

The $1,100 receipt of cash from C.Mate comprises of $1000 principal and $100 interest revenue,the $1000 should be credited to notes receivable since it is a reduction in asset and $100 credited to interest revenue as an increase in income.

The debit would be to cash account as an increase in cash and cash equivalents in the balance sheet of Android Products Inc,under the current assets section.

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3 years ago

Which is an example of acceptable consideration in a contract?

finlep [7]

D. Thoughtfulness
STEP-BY-STEP EXPLANATION

6 0

1 year ago

Which of the following are pros and/or cons of using a market system to produce and distribute health care?

irakobra [83]

Answer:

<em>options B, D</em>

Explanation:

When a market system is used to determine what healthcare products to produce and distribute <em>we expect;</em>

<em>1. that these medical devices and services from the suppliers would be given only to those who are willing and able to pay for them. and</em>

<em />

<em>2. Since the buyers have a say what healthcare services and products they need hospitals and doctors would at least to satisfy the tastes of buyers.</em>

<em />

3 0

3 years ago