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
andrezito [222]
3 years ago
14

Denver Company, a calendar year corporation, had the following actual income before income tax expense and estimated effective a

nnual income tax rates for the first two quarters in year x8: quarter income before tax estimated tax rate first $100k 30% second $140k 24% Denver's income tax expense in its interim income statement for the second quarter should be:
Business
1 answer:
lara [203]3 years ago
7 0

Answer:

Denver Company

Income Tax Expense for the second quarter:

Pre-tax quarter income = $140,000

Estimated tax rate = 24%

Tax Expense = $140,000 x 24%

= $33,600

Explanation:

a) Data:

Quarter    income before tax        estimated tax rate

first                 $100k                          30%

second           $140k                          24%

b) Denver's quarter second income tax expense is the product of the pretax income for the second quarter and the estimated income tax rate for the quarter.  The resulting calculation shows the estimated income tax expense that has to be settled by Denver.  If it is not settled in the quarter second period, it has to be carried forward to the next quarter as a liability under the heading, Income Tax Payable.

You might be interested in
What is the cost of equity for a firm that has a beta of 1.2 if the risk-free rate of return is 2.9 percent and the expected mar
Gnesinka [82]

13.1$ is the cost of equity for a firm that has a beta of 1.2 if the risk-free rate of return is 2.9 percent and the expected market return is 11.4 percent.

The cost of equity of a firm represents the compensation that the market demands in exchange for the asset ownership and bearing its risk. The traditional formula which comprises the cost of equity is the dividend capitalization model as well as the capital asset pricing model (CAPM).

Using the CAPM model or capital asset pricing model which determines the cost of equity financing would be equated as

Cost of Equity = Risk-Free Rate of Return + Beta × (Market Rate of Return – Risk-Free Rate of Return)

Here, the risk-free rate determines the minimum rate of return, to which the excess return is added.

Beta is referred to as the standard CAPM measure of systematic risk and has the tendency for the return of a security to move parallel with the whole return of the stock market.

In the CAPM model, the market return of an asset is the risk-free rate plus the premium which is multiplied by the beta of the asset.

So, here risk-free rate return RF=2.9

The expected market rate of return RM=11.4

Beta (β) =1.2

According to the CAPM model,

Cost of equity Re =RF+ β(RM-RF)

=2.9+1.2(11.4-2.9)

=2.9+10.2

=13.1

Therefore 13.1$ is the cost of equity.

Learn to know more about the estimation of the cost of equity by the CAPM model at,

brainly.com/question/13086476

#SPJ4

8 0
1 year ago
Let’s suppose that a bank has $600 million in total deposits. This bank is subject to a 20% required reserve ratio and has $100
Ludmilka [50]

Answer

The answer and procedures of the exercise are attached in the image.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

3 0
3 years ago
A group of 10 golfing buddies have the following annual incomes: $32,000, $12,000, $56,000, $120,000, $10,000, $38,000, $70,000,
eduard

The lowest quintile received $22,000.

Data and Calculations:

The number of golfing buddies = 10

A. = $10,000

B.  = $12,000

C.  = $16,000

D.  = $20,000

E.  = $24,000

F.  = $32,000

G.  = $38,000

H.  = $56,000

I.  = $70,000

J.  = $120,000

Total - $398,000

The lowest, first, or bottom quintile is between 0 to 20%.

Thus, the lowest quintile received $22,000 ($10,000 + $12,000) from the income distribution.

Learn more: lowest quintile here: brainly.com/question/2392523

8 0
2 years ago
Yojayna works for a manufacturing company. She meets with her boss once a week to review how well the company is meeting the tac
anygoal [31]

Answer:

She is a middle manager

Explanation:

As for the details provided,

Yojayna has a senior manager, to whom she meets once in every week to discuss the plan, and the achievements so far.

Thus, she is not the top most manager.

Further, she coordinates with supervisors who regulate the operations of employees on daily basis.

Thus, she is a manager to them.

Therefore, she is a middle level manager. Who works according to senior management, and then regulates the work of supervisors also.

8 0
3 years ago
Marco creates a budget for himself. He would like to buy ice cream once a week, but doesn't have enough money to do so in his cu
madam [21]

Answer:

Income

Explanation:

5 0
3 years ago
Read 2 more answers
Other questions:
  • The challenge in process layouts is to arrange resources to maximize __________ and minimize ___________.
    11·1 answer
  • Even though much of the wealth of the industrialized nations relies on the resources and markets in the developing world, that i
    15·1 answer
  • When the Toyota Prius first entered the marketplace, dealers kept waiting lists of people wanting one and the factories had to r
    10·1 answer
  • Ladder Works has debt outstanding with a coupon rate of 6 percent and a yield to maturity of 6.8 percent. What is the aftertax c
    9·1 answer
  • Cottage industries can be found in
    6·1 answer
  • Carla needs to examine the structure of the tables in her database. Where will she find the Table Analyzer Wizard in
    5·2 answers
  • In your own words, what is a franchise?
    14·1 answer
  • Your project to obtain charitable donations is now 30 days into a planned 40 day project. The project is divided into 3 activiti
    8·1 answer
  • a company paid $43,800 to acquire 7% bonds with a $46,000 maturity value. the company intends to hold the bonds to maturity. the
    10·1 answer
  • when discussing a project with bob, you say, "the project plan presented last week has a couple of issues that need to be addres
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!