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Rufina [12.5K]
3 years ago
12

North Dakota Corporation began operations in January 2020 and purchased a machine for $27,000. North Dakota uses straight-line d

epreciation over a four-year period for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2020, 20% in 2021, and 30% in 2022. Pretax accounting income for 2020 was $157,000, which includes interest revenue of $23,500 from municipal bonds. The enacted tax rate is 30% for all years. There are no other differences between accounting and taxable income. Required: Prepare a journal entry to record income taxes for the year 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Business
1 answer:
andrew-mc [135]3 years ago
6 0

Answer and Explanation:

The Journal entry is shown below:-

Income tax expense Dr, $40,025

      To Deferred tax liability $2,025

      To Income tax payable $38,025

(Being income taxes for the year 2020 is recorded)

Working note:-

Excess depreciation = ($27,000 × 50%) - ($27,000 ÷ 4)

= $13,500 - $6,750

= $6,750

For Deferred tax liability = $6,750 × 30%

= $2,025

For Income tax payable = ($157,000 - $23,500 - $6,750) × 30%

= $126,750 × 30%

= $38,025

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kari74 [83]
Glace has a glossy surface, and when frozen, appears like hard gelatin. I would have to say it is D. Thick.

Hope that helps!
8 0
3 years ago
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The current futa tax rate is 0.8%, and the suta tax rate is 5.4%. both taxes are applied to the first $7,100 of an employee's pa
Goryan [66]
The given values in the problem are enumerated below:
futa tax rate = 0.8%
suta tax rate = 5.4 %
Employee's fee = $7,100
Amount taxes = $7100 *(0.008+0.054)= $440.2

When an employee earned total wages of $9100, we can solve the unknown:
Employee's wages =  $9100 + $440.2
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3 0
3 years ago
Air Destinations issues bonds due in 10 years with a stated interest rate of 11% and a face value of $500,000. Interest payments
olga nikolaevna [1]

Answer: $471,324.61

Explanation:

Price of a bond = Present value of coupon payments + Present value of face value at maturity

Coupon payments = 500,000 * 11% * 1/2 years = $27,500

Periodic yield = 12%/ 2 = 6% per semi annual period

Periods = 10 * 2 = 20 semi annual periods

Coupon payment is constant so it is an annuity.

Price of bond = Present value of annuity + Present value of face value at maturity

= (Annuity * Present value interest factor of Annuity, 6%, 20 years) + Face value / (1 + rate) ^ number of periods

= (27,500 * 11.4699) + 500,000 / (1 + 6%)²⁰

= $471,324.61

8 0
2 years ago
A company with more production power than is generally utilized for its current production activity can benefit from entering th
Liula [17]

Answer:

a. The company can utilize production facilities to produce greater volumes to meet demand from a larger market, leading to higher productivity, lower cost and greater profitability.

Explanation:

Options are <em>"a. the company can utilize its production facilities to produce greater volumes to meet demand from a larger market, leading to higher productivity, tower cost and greater profitability. b. it will lead to a lower sales volume, which enables the company to free up more production power and require fewer employees. c. it will lead to a lower sales volume, which will reduce production costs and lead to greater production power. d. It will lead to a lower sales volume which means using less production power, enabling employees to have more time to participate in a learning environment."</em>

<em />

The question here is how the company will benefit by entering global market. And to enter global market, the company must produce larger volumes. So, the options B, C,& D are not correct. Because the company is looking to produce more and utilize its production capacity to the full to increase the profits by decreasing the costs (economies of scale). Thus, option A is correct.

6 0
3 years ago
In which of these instances is demand said to be perfectly inelastic?
Murljashka [212]

Answer:

b. A decrease in price of 2% causes an increase in quantity demanded of 0%.

Explanation:

By definition, the demand is said to be <em>perfectly inelastic</em> when no matter how much the price of a good changes, you will still be consuming the same exact amount as you did before the price changed.

Keeping this in mind, we know that the price may increase or decrease in 2%, but the demanded quantity will not have any change at all (people won't consume less or more).

So, now we know that the correct answer is <em>b, </em>because a decrease in price of 2% causes an increase in quantity demanded of 0% - in other words, people's purchase decision weren't influenced by the change in the price.

5 0
3 years ago
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