1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
marshall27 [118]
2 years ago
5

In 2018, DFS Medical Supply collected rent revenue for 2019 tenant occupancy. For income tax reporting, the rent is taxed when c

ollected. For financial statement reporting, the rent is recorded as deferred revenue and then recognized as income in the period tenants occupy the rental property. The deferred portion of the rent collected in 2018 amounted to $460,000 at December 31, 2018. DFS had no temporary differences at the beginning of the year.
Required:
Assuming an income tax rate of 40% and 2018 income tax payable of $940,000, prepare the journal entry to record income taxes for 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Business
1 answer:
Elenna [48]2 years ago
7 0

Answer:

income tax expense 756,000 debit

deferred tax assets    184,000 debit

      income tax payable   940,000 credit

Explanation:

As we are taxes as we collect but, for accounting reasons we reocngize gains under accrual method we have a portion of unearned reveneu which generates a deffered tax assets as next year this amount will not generate a tax payable:

unearned revenue 460,000

deferred tax assets: 460,000 x 40% = 184,000

income tax payable   940,000

- deferred tax assets<u>  184,000  </u>

income tax expense  756,000

You might be interested in
The objectives of U.S. monetary policy are to achieve​ ______.
SSSSS [86.1K]

Answer:

A. maximum employment and stable prices

Explanation:

The Fed has various roles. Among its key objectives is to monitor the economy to ensure maximum sustainable economic growth. To achieve this growth, the Fed uses different monetary tools to regulate inflation and influence unemployment levels.

The Fed receives economic data from other government agencies that help it determine the appropriate cause of action. For example, if the bureau of labor statistics reports a high level of unemployment, it could mean the economy is slowing down. The Fed then applies expansionary policies to stimulate growth.  If inflation is low or very high, it affects price stability. The Fed has tools to regulate inflation.

4 0
3 years ago
Constance tells Jill, her best employee, that: "Your work is so good, if I like what you do over the next six months, I’ll give
frozen [14]

Jill will not win because this is an illusory promise without consideration.

<u>Explanation:</u>

Even if Jill sues his boss Constance for not giving him the bonus that she had promised to give if her employee, Jill works with great focus and dedication, he will probably not win the case.

The reason for this is that it was just a promise and not a contract signed between that employer and that employee. It was just an illusory promise which is not enough to sue the person or the employer. So there was no benefit of doing it.

7 0
2 years ago
This jacket is so thin. It can't possibly keep out the rain."(Use the boomerang method.)
Ivan

Answer:

The jacket is thin because it uses a fiber called thinsulate that enables it to have the lightest weight but is also the warmest.

Explanation:

In general marketing, the boomerang method refers to the 'reconstruction' of the customer's objection into the main reason for buying. In other words, using the same excuse that a customer has about a product to entice him/her to buy that product by reframing it as a selling point is known as the boomerang method.

In the given scenario, the customer's objection is about the thinness of the jacket can be used as a selling point by the salesman by stating that the lightness of the jacket is what makes it a good product. So, if the seller tells the customer <em>"the jacket is thin because it uses a fiber called Thinsulate that makes it thin but also warm"</em>, then that will make it an interesting and important factor for the customer to like the product more.

6 0
2 years ago
Suppose that your marginal federal income tax rate is 30%, the sum of your marginal state and local tax rates is 5%, and the yie
snow_tiger [21]

Answer:

Option (B) is correct.

Explanation:

Given that,

Marginal federal income tax rate = 30%

Sum of your marginal state and local tax rates = 5%

Yield on thirty-year U.S. Treasury bonds = 10%

Municipal bond has a yield:

= U.S Treasury bonds × (1 - tax)

= 10% × (1 - 30%)

= (10 ÷ 100) × [1 - (30 ÷ 100)]

= (10 ÷ 100) × (70 ÷ 100 )

= (1 ÷ 10) × (7 ÷ 10 )

= (7 ÷ 100)

= 7%

3 0
3 years ago
Harris corporation produces a single product. last year, harris manufactured 27,970 units and sold 22,200 units. production cost
Dovator [93]

The Contribution Margin per unit (CM) can be calculated from the difference of Selling Price per unit (SP) and Total Expenses per unit (TE).

 

First, let’s calculate the value of SP:

SP = Sales / Units sold

SP = $1,043,400 / 22,200 units sold

SP = $47

 

Second, calculate all expenses:

Direct materials per unit = $234,948 / 27,970 units manufactured = $8.4

Direct labor per unit = $131,459 / 27,970 units manufactured = $4.7

Variable manufacturing overhead per unit = $240,542 / 27,970 units manufactured = $8.6

Variable selling expenses per unit = $113,220 / 22,200 units sold = $5.1

TE = $26.8

 

Therefore the CM is:

CM = SP – TE

CM = $47 - $26.8

CM = $20.2 per unit

6 0
3 years ago
Other questions:
  • Mark's department has hired a marketing manager to help increase the sale of the company’s products. However, he believes that t
    13·1 answer
  • Classify each item as an asset, liability, common stock, revenue, or expense.
    12·1 answer
  • Eleanor paid an annual premium of $2,000 in total coverage for her homeowner's insurance, including $250,000 in damage coverage
    15·1 answer
  • The basic principles that govern behavior and help people determine right from wrong are __________.
    13·1 answer
  • Which of the following is an inconsistency of using market multiples to determine value? A) Using a market multiple assumes that
    14·1 answer
  • Catherine sat down with all of her income details from the past year to calculate the total income she had in that period. After
    13·1 answer
  • Accounting information systems integration
    9·1 answer
  • A company had the following partial list of account balances at year-end: Sales Returns and Allowances $ 1,000 Accounts Receivab
    15·1 answer
  • Research the different types of body language the people use in different cultures.
    12·1 answer
  • the balance in the prepaid rent account before adjustment at the end of the year is $32,000, which represents four months' rent
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!