Answer:
$60,000 income tax benefit
Explanation:
Since Crimson Corp. had a loss from operations and sold the asset for a loss we know that they lost money with the asset and an income tax benefit was generated. To calculate the income tax benefit we need to add both losses: $40,000 (operation) + $160,000 (sale) = $200,000 in total losses.
$200,000 x 30% = $60,000 income tax benefit
Answer:
option (D) 10.34
Explanation:
The inventory turnover ratio for 2016 will be given as:
= [Cost of goods sold ] ÷ Average inventory
also,
Cost of goods sold in 2016 = $148,669
Average inventory = [ 2015 inventory + 2016 inventory ] ÷ 2
= [ 14,001 + 14,760 ] ÷ 2
= 28761 ÷ 2
= 14,380.5
Therefore,
The inventory turnover ratio for 2016 = $148,669 ÷ 14,380.5
= 10.34
Hence,
The answer is option (D) 10.34
Answer: The consumer price index will increase, but the GDP deflator will not increase.
Explanation:CPI(Consumer p ice index) is a concept used in Macroeconomics to mean the weighted average of the prices of
A basket of consumer goods and services.
GDP(gross domestic product) Is the value of the entire goods and services rendered within an economy over a given period of time.
GDP Deflator determines the price changes of all goods and services produced within an country.
As the price of Italian shoes imported into the Unites States of America rises the CPI INCREASES BUT THE GDP DEFLATOR WILL NOT INCREASE.
Answer:
The maximum interest rate the bank needs to offer on the loan if Martin is at least to break even on this investment is A) 6%
Explanation:
Martin is offered an investment where for $4000 today, he will receive $4240 in one year. The interest rate of the investment = ($4,240-$4,000)/$4,000x100% = 6%
The maximum interest rate the bank needs to offer on the loan if Martin is at least to break even on this investment should equal the interest rate of the investment: 6%
Answer:
The journal entry to record applied conversion costs for May will include a debit to raw and in-process inventory for $300,000.
Explanation:
Raw materials of all kinds are measured at the start and recorded into a list plus account, with a credit to the accounts collectible account, and a debit to the raw materials inventory account.
The accounting treatment will vary when raw materials are consumed speculating on their standard as direct or indirect materials.
Thus, the journal entry to record applied conversion costs for May will include a debit to raw and in-process inventory for $300,000.
