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quester [9]
3 years ago
10

Brass Co. reported income before income tax expense of $60,000 for 2017. Brass had no permanent or temporary timing differences

for tax purposes. Brass has an effective tax rate of 30% and a $40,000 net operating loss carry-forward from 2016. What is the maximum income tax benefit that Brass can realize from the loss carry-forward for 2017?
Business
1 answer:
Zielflug [23.3K]3 years ago
5 0

Answer:

$12,000

Explanation:

30%×$40,000= $12,000

Brass Co.'s 2017 taxable income of $60,000 exceeds the $40,000 net operating loss carry forward from 2016.

Therefore the total net operating loss carry forward can be utilized in 2017 in which $40,000 carryforward will be used to offset $40,000 of Brass' taxable income.

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Suppose that you own a 20-acre plot of land that you would like to rent out to wheat farmers. For them, bringing in a harvest in
mars1129 [50]

Answer:

1. The most that the farmer would pay to rent 20 acre is $100.

2. The price of wheat rose to $6 per bushel is $900.

Explanation:

Given the information, we have:

Total cost per acre

= $35 + $80 + $70 = $185

Revenue from wheat per acre

= 40 x $5 = $200

Contribution per acre = $200 - $185 = $15

The most that the farmer would pay to rent 20 acre is

==>20 x ($15 - $10) = $100

If the price of wheat rose to $6, the most that farmer would pay

= 20 x (240 - 185 - 10)

= $900

5 0
2 years ago
3. A trader has a short position of 10 contracts in a crude oil futures contract. Yesterday’s closing price was $55.30/barrel. T
forsale [732]

Answer:

The trader has incurred a loss because the price of crude oil futures has increased.

Loss = (Today's closing price - Yesterday's closing price) * 10 * 100

Loss = (57 - 55.30) * 100 Per contract

Loss = $170 per contract

Loss for 10 contracts = 170 * 10 = $1,700

Now the account balance = Current margin balance - Loss for 10 contracts

The account balance = 28,000 - 1,700

The account balance = $26,300

Maintenance margin for 10 contracts = 2,500 * 10 = $25,000

Since the account balance is greater than the required maintenance margin for 10 contracts, the investor is not required to deposit money into the margin account.

Explanation:

7 0
2 years ago
​Tom's Taxidermy has a monthly target operating income of $29,000. Variable expenses are 65​% of sales and monthly fixed expense
HACTEHA [7]

Answer:

Leverage factor will be 1.344

Explanation:

We have given operating income = $29000

And variable expenses is 65 5 of the sales

And fixed expenses = $10000

So contribution margin = $29000+$10000 = $39000

We have to find the leverage factor

Leverage factor is given by

Leverage factor =\frac{contribution\ margin}{operating\ income }=\frac{39000}{29000}=1.344

So leverage factor will be 1.344

5 0
3 years ago
Most of the property in command economies is owned by who​
ozzi

Answer:

In a command economy an authority such as the government, governmental agency, or central planners decide what to produce, how to produce and to whom goods and services will be allocated.

4 0
3 years ago
Clabber Company has bonds outstanding with a par value of $119,000 and a carrying value of $108,700. If the company calls these
Vladimir79 [104]

Answer:

option (b) $4,200 gain

Explanation:

Data provided in the question:

Par value of outstanding bonds  = $119,000

Carrying value of the bonds = $108,700

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Hence, correct answer is option (b) $4,200 gain

6 0
3 years ago
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