Answer:
$17,850
Explanation:
since Boxer's tax depreciation exceeded its book depreciation by $20,000, it must report a current tax liability = (total income x tax rate) - (excess depreciation x tax rate)
= ($105,000 x 21%) - ($20,000 x 21%) = $22,050 - $4,200 = $17,850
This means that Boxer has to pay $17,850 in income taxes.
Answer:
The return on investment for Investment Center B is of 26.92%.
Explanation:
The general formula for calculating the<em> return on investment</em> (ROI) is:
In this exercise the <em><u>cashflow</u></em> is given by the yearly income from each investment, while the asset data gives us the <u><em>value of the investments</em></u>.
For investment center A we have that:
ROI = = 17.29%
While for investment center B we have:
ROI = = 26.92%
Since we’re only interested in the affairs of investment center B we use the results we have obtained from the second equation to answer the question: the return on investment for the investment center B is of 26.92%.
Answer:
The cost outweigh the benifits by 3,700 dollars.
Explanation:
The benifits outweigh the cost if total benifits are more than total costs/spendings. Detail calculation to check the requirement of question is given below.
Spending
Software Cost $ 10,800
Employee Training $ 8,700
Hardware upgradation cost $ 12,300
Total spending $ 31,800 -A
Benifits
Inventory tracking system $ 28,100
Total Benifits $ 28,100 -B
Saving B-A ($ 3,700)
Answer:
c. Debit: Discount on notes payable, $41,884.
Explanation:
The journal entry is shown below:
Equipment $883,116
Discount on Notes payable $41,884 ($740,000 - $698,116)
To Notes payable $740,000
To Cash $185,000
(Being the amount paid in cash and note payable is recorded)
Working note
= Note payable amount × PVF factor at 6% for one year
= $740,000 × 0.94340
= $698,116
For recording this we debited the equipment as it increased the assets and discount is always debited while the note payable and cash is credited as it increased the liabilities and reduced the assets