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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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Lance lopes went to his bank to find out how long it will take for $1,500 to amount to $2,700 at 15% simple interest. can you so
denis23 [38]
To find simple interest: 

Time = Interest/(Principle)(Rate)

Interest is the amount of interest paid
Principle is the amount you lent or borrow
Rate is the percentage of principle charged as interest each year
Time is the years of the loan

P=Principle amount of $1,500
I=Interest amount of $1,200 (Take the new amount of $2,700 and subtract from the principle that is $1,500 which gives you $1,200)
r= as a decimal .15 (15%/100)
t=unknown

T=I/PR

T=1,200/(1,500)(.15)
T=1,200/225
T=5.3 years 

It would take Lance roughly 5.3 years
3 0
3 years ago
A deficit on the current account Multiple Choice means that a nation is making international transfers. has no relationship to t
Sliva [168]

Answer:

The correct option is C

Explanation:

The deficit or shortage on the current account of the country, is defined as the measurement or determination of the trade of the company where the goods and the service value, it imports exceeds or increase the value of the products it exports.

The current account of the country states the foreign transactions of the country within the time period.

So, when there is deficit or shortage on the current account, it means that usually, it will cause deficit in the finance as well as the capital account of the country.

4 0
3 years ago
Question 5 of 10
LekaFEV [45]
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7 0
3 years ago
Suppose demand is given by q = 80 - 0.5p. what is the price elasticity of demand when p = 40?
Rasek [7]
<span>I believe the answer to this question is: the price elasticity of demand is 60. q = 80 - 0.5(40) is the equation I used. Half of 40 is 20, and 80 minus 20 is 60.</span>
8 0
3 years ago
The Dean Company has sales of $500,000, and the break-even point in sales dollars of $300,000. What is the company’s margin of s
postnew [5]

Answer:

40%

Explanation:

The Dean company have a sales of $500,000

The break-even point in sales dollar is $300,000

Therefore, the company's margin of safety can be calculated as follows

Margin of safety= Sales-break-even sales/sales

= $500,000-$300,000/$500,000

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= 0.4×100

= 40%

Hencethe company's margin of safety percentage is 40%

4 0
3 years ago
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