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lesya692 [45]
3 years ago
6

The accountant at Metlock, Inc. is figuring out the difference in income taxes the company will pay depending on the choice of e

ither FIFO or LIFO as an inventory costing method. The tax rate is 30% and the FIFO method will result in income before taxes of $15730. The LIFO method will result in income before taxes of $14600. What is the difference in tax that would be paid between the two methods?
Business
1 answer:
Lisa [10]3 years ago
6 0

Answer:

$339

Explanation:

Computation of the given data are as follows:

Income before tax in FIFO = $15,730

Tax rate = 30%

So, the Tax amount for FIFO = $15,730 × 30%

= $4,719

And, Income before tax in LIFO = $14,600

Tax rate = 30%

So, the Tax amount for LIFO = $14,600 × 30%

= $4,380

So, the difference in tax amount = Tax amount for FIFO  - Tax amount for LIFO

= $4,719 - $4,380

= $339

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JulsSmile [24]

Rollo is a member of smooth operators llc, a limousine service. rollo’s relationship to smooth operators ends, but the firm continues to do business. this is dissociation.

One way the mind deals with too much stress, such as during a traumatic experience, is through dissociation. Dissociation experiences can last for a very short period of time (hours or days) or for a very lengthy period of time (weeks or months). You could acquire a dissociative disorder if you disassociate for a prolonged period of time, especially if you're young.

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4 0
2 years ago
RuthAnn is 28 years old and is retiring at the age of 65. When she retires, she estimates that she will need an annual income of
inessss [21]

Answer:

Yes

Explanation:

From her current age of 28 to her retirement age of 65, RuthAnn has (65 - 28 =) 37 more years to work.

If she saves 11% of her annual income of $36,278.13 into a 401(k), she will be setting aside (11% * 36,278.13 =) $3,990.59 into the 401(k) account annually.

At 7.1% compounding rate, in 37 years, RuthAnn would have set aside an amount estimated by the future value of an annuity formula.

FV = \frac{A(1+r)^{n} - 1}{r}

where FV is the future value, the amount that would have been set aside,

A = is the annual savings,

r = is the compounding rate, and

n = is the number of years.

Therefore, the total amount that would be saved up after 37 years =

FV = \frac{3,990.59(1+0.071)^{37} - 1}{0.071}

= (3,990.59 * 11.6535)/0.071

= $654,990.31.

By spending $32,523 annually from an account earning 7.1% compound interest rate for 30 years, the present value of the total amount needed by RuthAnn today that will be sufficient for her retirement spending can be estimated using the present value of an annuity formula.

PV = \frac{A(1 - (1+r)^{-n}}{r}

= PV = \frac{32,523(1 - (1.071)^{-30}}{0.071}

= (32523 * 0.8723)/0.071

= $399,574.83.

Since the amount saved up ($654,990.31) is more than the total amount required for RuthAnn's retirement ($399,574.83), RuthAnn has more than sufficient to meet her Retirement goal.

Specifically, the amount she has saved up can support a maximum annual spending which can be estimated from the present value of an annuity formula.

PV = \frac{A(1 - (1+r)^{-n}}{r}

where PV = the amount saved up, $654,990.31,

A = the annual spending which we are estimating,

r = the 7.1% compound interest rate,

n = the number of years to retirement.

654,990.31 = \frac{A(1 - (1.071)^{-30}}{0.071}

= 654,990.31 = (A * 0.8723)/0.071

= A = 654,990.31/0.8723 * 0.071

= A = 53,312.29

Thus, the amount saved up can support a maximum retirement spending of $53,312.29, which is higher than the $32,523 annual income needed by RuthAnn for her retirement.

6 0
3 years ago
Businesses should customize invoices to best detail the products or services they provide.
Doss [256]

Answer: A

Explanation:

5 0
3 years ago
Read 2 more answers
At the beginning of a year, a company predicts total direct materials costs of $1,010,000 and total overhead costs of $1,270,000
marin [14]

Answer:

1.267 = Overhead Rate

Explanation:

<em>As general approach,</em> the manufacturing rate, along with any rate is done by dividing the cost by a cost driver.

\frac{Cost\:Of\: Manufacturing\: Overhead}{Cost\: Driver}= $Overhead \:Rate

In this case teh cost is the manufacturing overhead and the cost driver the direct materials cost:

\frac{1,270,000}{1,010,000}= $Overhead Rate

<em>Using Direct Materials cost, the rate would be:</em>

1.257425743= $Overhead Rate

3 0
3 years ago
Yozamba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasin
kipiarov [429]

Answer:

Yozamba Technology

Divisional Income Statements:

                                  Consumer       Commercial        Total

Revenues                 $7,430,000        $6,184,000    $13,614,000

Cost of goods sold     4,123,000          3,125,000       7,248,000

Gross profit              $3,307,000      $3,059,000    $6,366,000

Operating expenses  1,465,000          1,546,000        3,011,000

Corporate expenses:

Tech Support               322,500             193,500          516,000

Purchasing                      31,360               58,240           89,600

Other corporate administrative expenses                  560,000

Total expenses       $1,818,860          $1,797,740     $4,176,600

Net income (loss)    $1,488,140         $1,261,260     $2,189,400

Explanation:

a) Data and Calculations:

Corporate expenses for the year ended December 31, 20Y7:

Tech Support Department                         $516,000  Number of computers

Purchasing Department                                 89,600  Number of POs

Other corporate administrative expenses 560,000

Total corporate expense                         $1,165,600

Usage of Service:

                                 Tech Support          Purchasing

Consumer Division    375 computers     1,960 purchase order

Commercial Division 225                       3,640

Total                           600 computers    5,600 purchase order

Overhead Rates:

Tech Support = $860 per computer ($516,000/600)

Purchase = $16 per purchase order ($89,600/5,600)

Allocation of Corporate Expenses:

                                     Tech Support     Purchasing     Total

Consumer Division           $322,500        $31,360        353,860

                                       (375 * $860)     (1,960 * $16)

Commercial Division            193,500        58,240          251,740

                                      (225 * $860)     (3,640 * $16)

Total                                   $516,000      $89,600      $605,600

3 0
3 years ago
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