Answer:
The correct answer is b. right, raising the price level.
Explanation:
The balance of the money market or money market is the market point that occurs as a result of the crossing of the money supply with the money demand. As a result of this equivalence, we will obtain the level of optimal interest rates in the short term.
The demand for money is defined as the proportion of wealth that people want to keep in the form of money. However, the money supply is defined as cash held by the public plus deposits held in bank accounts.
Answer:
Income tax payable 2018 = $43 x 40% = $17.2 million
deferred tax liability = temporary difference x change in income taxes = $33 million x (40% - 30%) = $3.3 million
income tax expense = income tax payable - deferred tax liability = $17.2 million - $3.3 million = $13.9 million
a. Determine the effect of the change and prepare the appropriate journal entry to record Bronson's income tax expense in 2016.
- Dr Income tax expense 13,900,000
- Dr Deferred tax liability 3,300,000
- Cr Income tax payable 17,200,000
b. What adjustment, if any, is needed to revise retained earnings as a result of the change?
- Deferred tax assets and liabilities affect the current retained earnings, but no adjusting entry is needed.
- Deferred tax assets and liabilities result in differences between US GAAP rules and the rules that the accounting rules used by the IRS (e.g. expensing asset purchases). Generally the greatest effects of deferred tax assets and liabilities are seen in the cash flow statements, not retained earnings.
Explanation:
Organizational development in contemporary organizations has been directly impacted by technological changes and globalization.
With these two phenomena that reinforce the capitalist system by the flow of information and the new possibilities of domestic and international markets, the organizational processes also undergo constant adaptations so that they survive a highly competitive and dynamic market.
Currently, companies are no longer just profitable entities but also become promoters of socio-environmental well-being, so it is necessary that their internal and external processes take into account how to meet and exceed the expectations of their stakeholders, being direct agents of the promotion of values ethics, sustainability, education and development of society.
Answer:
$1,860,762.35
Explanation:
The computation of the number of shares need to be sold is shown below:
= Raise amount ÷ received per share
where,
Amount received by company per share = Price per share in case of general cash offer - Underwriter's commission per share
= $28.30 - $28.30 × 6%
= $28.30 - $1.698
= $26.602
So, the number of shares sold is
= $49,500,000 ÷ $26.602
= $1,860,762.35
Answer:
a. Orange Furniture must include <u>$1,000</u> in gross income as the recovery of a prior deduction cost.
Since the 2016 bad debt deduction resulted in a tax benefit, the $1,000 recovery will be considered income. Orange's cost for this transaction = (35% 2015 tax rate - 12% 2016 tax rate) x $1,000 recovery = 23% x $1,000 = $230
b. How much must Marvin include in his gross income for 2017? <u>$800</u>
Marvin's net benefit from itemizing his taxes was $800, so that amount must be included as gross income due to the state's refund. Marvin will actually suffer a lose due to this transaction since during 2016, he was in the 15% tax bracket, while during 2017 his tax bracket is 35%. He saved 15% x $800 = $120 for 2016, but will have to pay 35% x $800 = $280 during 2017.
c. What amount, if any, will Barb include in her 2017 gross income? <u>$3,000</u>
Since Barb was able to recover the medical expenses, she must include in her gross income the tax benefit that she received for itemizing her deductions.