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kvasek [131]
3 years ago
10

Davison Company determined that the book basis of its net accounts receivable was less than the tax basis of its net accounts re

ceivable by $800,000 due to a difference in the allowance for bad debts account. This basis difference is characterized as: A. Deductible temporary differenceB. Taxable temporary differenceC. Favorable permanent differenceD. Unfavorable permanent difference
Business
1 answer:
arsen [322]3 years ago
5 0

Answer: the correct answer is A. Deductible temporary difference

Explanation:

The future tax deduction created by the write-off of bad debts will create a future tax benefit and will be recorded on the balance sheet as a deferred tax asset.

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Today, almost every sales rep can immediately check the company's inventory andproduction schedule electronically. This allows s
7nadin3 [17]

Answer:

E) Savings customers time

Explanation:

The fact that sales representatives can verify if the product they want to sale is available before closing the deal is of great benefit to the customers. Customers will not have to go through the bad experience of being promised a product, and having it delivered because of lack of availability.

This will help increase customer loyalty and the firm's reputation in the market.

5 0
4 years ago
Sunburn Sunscreen has a zero coupon bond issue outstanding with a $11,000 face value that matures in one year. The current marke
7nadin3 [17]

Answer:

1. a) EQUITY = $ 5,036.68

b) DEBT = $ 10,263.32

2. a) EQUITY = $ 4,852.29

b) DEBT = $ 12,247.79

3. PROJECT A

4. Yes

Explanation:

Current market value of the firm’s assets = $13,800

Total Value of Firm = $13800 a-1 NPV of Project A = $1,500 Total Value of Firm if selects Project A = Current Value + NPV of the new Project = $13800 + $1500 = $15,300 Value of debt = $12000 Value of Equity= Value of Firm -Value of Debt = $15300 - $12000 = $3300 a-2 NPV of Project B = $2300 Total Value of firm if selects project B = Current Value + NPV of the new Project = $13800 + $2300 = $16100 Value of Debt = $12000 Value of Equity = Value of Firm -Value of Debt = $16100 - $12000 = $4,100

Therefore,

1. a) EQUITY = $ 5,036.68

b) DEBT = $ 10,263.32

2. a) EQUITY = $ 4,852.29

b) DEBT = $ 12,247.79

3. PROJECT A

4. Yes

8 0
4 years ago
________________ software analyzes vast stores of historical business data that have been prepared for analysis in corporate dat
GrogVix [38]

Answer:

Data mining

Explanation:

Data mining software are programs that are used by companies to be able to process and analyze big amounts of information to find tendencies, make predictions and develop more effective strategies. According to this, the answer is that data mining software analyzes vast stores of historical business data that have been prepared for analysis in corporate data warehouses and tries to discover patterns, trends and correlations hidden in the data.

6 0
3 years ago
Making a credit card minimum payment:
LUCKY_DIMON [66]
Having enough on that credit
5 0
3 years ago
Dave Matthew Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump su
Sedaia [141]

Answer:

$78,199

Explanation:

If the market price of common stock is $165 per stock, then selling 500 common stocks should = $82,500

If the market price of preferred stock is $230 per preferred stock, then selling 100 preferred stocks should = $23,000

If we add both we would get $105,500. If we want to allocate the proceeds proportionally according to their market prices:

common stocks = ($82,500 / $105,500) x $100,000 = $78,199

preferred stocks = ($23,000 / $105,500) x $100,000 = $21,801

the journal entries should be:

  • Dr Cash account 78,199
  • Cr Common Stock account 5,000
  • Cr Capital Paid-in Excess of Par Value (Common Stock) account 73,199

  • Dr Cash account 21,801
  • Cr Common Stock account 10,000
  • Cr Capital Paid-in Excess of Par Value (Preferred Stock) account 11,801

3 0
4 years ago
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