What time zone would you like convert to?
Answer: a. true
Explanation:
Cash payback period shows the amount of time it will take for cash inflows from an investment to pay off the investment.
Cash payback period = Investment/ Cash inflow
= 80,000/32,000
= 2.5 years
<em>Statement is proven true. </em>
Answer:
Since Tax Payable is $940000 @ 40%, Taxable income will be:
= $940,000 × (1/40%)
= $2,350,000
Only Temporary difference is Rent $490,000, which is being recognized for tax but not for Books.
Hence Pre-Tax Accounting income will be:
= $2,350,000 - $490,000
= $ 1,860,000
Therefore, Journal Entry will be:
Income Tax Expense A/c (1,860,000 × 40%) Dr. $744,000
Deferred Tax Asset A/c (490,000 × 40%) Dr. $196,000
To Income Tax Payable $940,000
(To record income taxes for 2018)
I would think it might be, "absorption costing."