Answer: Liability of $300,000
Explanation:
In the question above, what we have is a deferred tax liability, which could be explained as the amount accrued in taxes at a present time but payable in the future. The tax rate will not be based in the present tax rate. Thus is why we will not be using the 30% tax tate of 2018 in calculating the tax amount.
Tax rate = 40%
Exceeded tax basis = $750,000
0.4 × 750,000 = $300,000
Therefore, Johns-Hopper should report the deferred tax effect of this difference in its December 31, 2018, balance sheet as Liability of $300,000
The applicable formula is;
A = P(1-r)^n
Where;
A = Final purchasing power
P = Current purchasing power
r = inflation
n = Number of years when P changes to A
Confirming the first claim:
A = 1/2P (to be confirmed)
P = $3
r = 7% = 0.07
n = 10.25 years
Using the formula;
A = 3(1-0.07)^10.25 = 3(0.475) ≈ 3(0.5) = $1.5
And therefore, A = 1/2P after 10.25 years.
Now, give;
P = $9
A = 1/4P = $9/4 = $2.25
r = 6.5% = 0.065
n = ? (nearest year).
Substituting;
2.25 = 9(1-0.065)^n
2.25/9 = (1-0.065)^n
0.25 = (1-0.065)^n
ln (0.25)= n ln(1-0.065)
-1.3863 = -0.0672n
n = (-1.3863)/(-0.0672) = 20.63 years
To nearest year;
n = 21 years
Therefore, it would take approximately 21 years fro purchasing power to reduce by 4. That is, from $9 to $2.25.
Answer:
a.mechanistic
Explanation:
Based on the scenario being described within the question it can be said that it seems that Fine Lines Inc. is using a mechanistic structure. This type of structure, also known as a bureaucratic structure, is a structure based on a single formal and centralized network where authority comes from the top-level managers who make most of the decisions.
Answer:
development enhances the organization's capacity to control environmental forces
Explanation:
Employee development can be described as when an employer takes certain certain steps to increase the skills, competences and knowledge of the employees.
Employee development can take the form of :
- trainings
- Mentorships
- On the job training
- conferences
- job rotations
Advantages of employee development includes :
- It reduces employee turnover
- It increases the skills of employee
- It increases the efficiency of employees
Answer:
indirect
Explanation:
The indirect method adjusts net income to find net cash provided by operating activities.
