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Misha Larkins [42]
3 years ago
6

The first year of operations for Grayton Company is 2017. Given this information for 2017:_______. Pretax book income $90,000Est

imated litigation expense 100,000Excess of tax over book depreciation 300,000Interest Income on municipal bonds 200,000 No other permanent or temporary differences exist. The litigation item will be paid in 2020 and is appropriately considered a noncurrent liability. The depreciation will reverse evenly over the next three years. Tax rate is 30%. Future net income is probable. Indicate the proper deferred tax amount (s) to appear on the 12/31/17 balance sheet a. A noncurrent liability of $90,000 b. A noncurrent liability of $60,000 c. A noncurrent asset of $30,000 and a noncurrent liability of $90,000 d. A current liability of $30,000 and a noncurrent liability of $10,000 e. A noncurrent asset of $90,000 and a noncurrent liability of $30,000
Business
1 answer:
miss Akunina [59]3 years ago
6 0

Answer:

b. A noncurrent liability of $60,000

Explanation:

Calculation to Indicate the proper deferred tax amount (s) to appear on the 12/31/17 balance sheet

First step is to calculate the Estimated litigation expense by multiplying it with the Tax rate percentage

($100,000 × 30%)

= $30,000

Second step is to calculate the Excess of tax over book depreciation by multiplying it with the Tax rate rate percentage

($300,000 × 30%)

= $90,000

The last step is to calculate for the proper deferred tax amount (s) to appear on the 12/31/17 balance sheet

$90,000-$30,000

=$60,000 noncurrent liability

Therefore the proper deferred tax amount (s) to appear on the 12/31/17 balance sheet will be A noncurrent liability of $60,000

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Question 2 (multiple choice)
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3 years ago
Trackanddeliver.com is an online retail store that does not require a fixed delivery location and delivers goods to the current
My name is Ann [436]

Answer:

E. functional innovation

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Functional innovation -

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Hence , from the question,

Trackanddeliver.com deliver the product to the peoples exact location , uses the method of functional innovation.

8 0
3 years ago
7. Problems and Applications Q7 A dozen eggs cost $0.96 in December 2000 and $2.75 in December 2015. The average wage for worker
fredd [130]

Answer: 187%

Explanation:

The percentage increase in the price of dozen egg would be:

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4 0
3 years ago
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:

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3 years ago
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