1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
GarryVolchara [31]
3 years ago
10

In its year 3 income statement, Cere Co. reported income before income taxes of $300,000. Cere estimated that, because of perman

ent differences, taxable income for year 3 would be $280,000. During year 3 Cere made estimated tax payments of $50,000, which were debited to income tax expense. Cere is subject to a 30% tax rate. What amount should Cere report as income tax expense?
Business
1 answer:
Nimfa-mama [501]3 years ago
3 0

Answer:

$84,000

Explanation:

In this case there will arise deferred tax asset as the book profit is more than taxable profit, now

Tax liability = $300,000 X 30% = $90,000

Though out of which deferred tax asset = ($300,000 - $280,000) X 30% = $6,000

Now tax expense for the year = $280,000 X 30% = $84,000

Therefore, Cere should report a tax expense of $84,000

Even though the liability is of $90,000

Final Answer

$84,000

You might be interested in
Benefit payments made on a ____________ basis are not scheduled, but are based on the average fee charged by all doctors in a gi
Ugo [173]

Answer:

Benefit payments made on a usual, customary and reasonable (UCR) basis are not scheduled, but are based on the average fee charged by all doctors in a given geographical area.

Explanation:

Benefit payments can be described as a government payment to specific people in the society who are disadvantaged in one way or the other. Benefit payments can be made to the; unemployed, people with children, the aged, people who are ill and even the poor. Benefit payments is a practice that is anchored in law that aims at protecting the economically vulnerable in the society. There are different types of benefit payments that exist. In this particular question, we will consider UCR payments.

The UCR payments falls under the health and welfare plans, and can be defined as benefit payments that are not scheduled  but are based on the average fee charged by all doctors in a given geographical area. A benefit payment that is not scheduled means that it doesn't have a specific amount attached to it, but depends on the location. This is because health services charges vary from one geographical position to the next. One can be offered different medical charges in different locations due to a distinction in geographical area. The same geographical areas however, have an average amount of fee that is specific to that area. In benefit payments, this average amount is what is often payed to the beneficiary.

3 0
3 years ago
Q 8.14: The financial statements of the Imagine Company report net sales of $1,000,000 and accounts receivable of $700,000 and $
sesenic [268]

Answer:

2 times

Explanation:

The computation of accounts receivable turnover is shown below:-

Account receivable turnover ratio = Net credit sales ÷ Average accounts receivable

where,

Net credit sales is $1,000,000

And, the Average accounts receivable is

= (Accounts receivable, beginning of year + Accounts receivable, end of year) ÷ 2

= ( $700,000 + $300,000) ÷ 2

= $500,000

Accounts receivable turnover = Net sales ÷ Average accounts receivable

= $1,000,000 ÷ $500,000

= 2 times

6 0
3 years ago
A manager who wishes to be successful in international business should avoid a(n) ________ attitude.
coldgirl [10]

Answer: ethnocentric

Explanation:

6 0
2 years ago
Shady Lane's income tax payable account decreased from $14 million to $12 million during 2016. If its income tax expense was $80
maria [59]

Answer:

A cash outflow of $82 million.

Explanation:

Because during the year Shady had taxes expenses for $80 million but then Shady cancelled $2 million of the Income Tax Payable account, which decreased from $14 million to $12 million.  

3 0
3 years ago
A group of athletic shoes in a shoe factory are partially completed but still lack their innersoles and shoestrings. these shoes
gogolik [260]
<span>These would be work in-progress inventory. They are further along in production than the basic raw materials, but are not completed to the point where they could be put out for sale as finished goods. They are still requiring some work to get to this point.</span>
5 0
3 years ago
Other questions:
  • Brooke Company grants James Decorating additional time to pay its past-due account. James makes a written promise to pay Brooke
    6·2 answers
  • Aqua Ltd issues a prospectus inviting the public to subscribe for 30 million ordinary shares of $2.00 each. The terms of the iss
    5·1 answer
  • Your credit at a bank is based on your ability to pay back a loan.
    12·2 answers
  • As a consumer you believe yourself to act rationally, optimally and self-interestedly. You like ice cream and value a pint at $7
    15·1 answer
  • What is the majority of our federal budget devoted to? (What
    10·1 answer
  • Following is a partial process cost summary for Mitchell Manufacturing's Canning Department.
    10·1 answer
  • Jane bought a $3,000 audio system and agreed to pay for the purchase in 10 equal annual installments beginning one year from tod
    7·1 answer
  • McDonald's is a major company in the restaurant business
    9·1 answer
  • 100 POINTS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! PLEASE ANSWER APROPPRIATELY!!!!!! NO LINKS OR FALSE ANSWERS PLEASE OR YOU WILL BE R
    14·1 answer
  • The material wealth of a society is a function of? all financial assets. all real assets. all financial and real assets. all phy
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!