For the year ended December 31, year 5, Pering Co. reported pretax financial income of $550,000. Its current tax expense was $14
4,000. Pering reported a difference between pretax financial statement income and taxable income. This difference is due to accelerated depreciation for income tax purposes. Pering’s effective income tax rate is 30% and Pering made estimated tax payments during year 5 of $75,000. What amount did Paring report as taxable income for year 5? 405,000
480,000
475,000
550,000
Also known as brand partnership, it is a marketing strategy that incorporates multiple brands on a good or service. It involves the brands of at least 2 organisations. Just like the Lexus and coach described above.
In order to find the maximum amount of money that will be created in the banking system as a result of a deposit, we need to find the money multiplier.
Multiplier = 1/reserve ration = 1/0.2 = 5
The amount of money created = Multiplier *Initial deposit
