Answer:
Given:
Income before income taxes = $225,000
Book depreciation = $25,000
Nondeductible book expenses = $10,000
Tax rate = 40%
Enacted rate = 35%
Deferred income tax liability is computed as:
Deferred income tax liability = Book depreciation × Enacted rate
= $25,000 × 35%
= $8,750
Answer:
Inductive reasoning
Explanation:
This type of reasoning is considering generalization that is formed and based on some previous experiences and with that previous experiences the observation that is made is forming an inductive reasoning.
In this case, the person met many of them who says that their favorite pizza is pepperoni and then every time that someone say that they love pizza, this person will think of pepperoni pizza because of the previous experiences that caused those observations.
Answer:
competition based pricing
Explanation:
When a company engages in a competition based pricing strategy, they will set the price of their products or services taking based on the price of their main or direct competitor. The product or service provided by the competitor is used to benchmark both the price and quality of the goods and services offered by the company.
For example, Coca Cola products are used as a price reference for all the soda products sold by other companies.
Answer and Explanation:
The computation is shown below;
Particulars Reject Order Accept Order Net Income
Revenues $0 $126,280 $126,280
(4,510 units × $28)
Variable manufacturing $0 $76,670 -$76,670
(4,510 units × $17)
Shipping $0 $18,040 -$18,040
(4,510 units × $4)
Net Income $0 $31,570 $31,570
Hence, the net income is in positive value so the special order would be accepted