Answer:
Lets shape the question so it makes some sense.
<em>Warranty costs amounting $500,000 were recorded in 2018 Income statement. However, the warranty tax deduction is not allowed until payment occurs in future years. Disscuss accouting implication</em>
See detail answer below.
Explanation:
As per tax laws warranty provision is not allowed as deductible expense only warranty cost incured/paid during the year is allowed deduction when computing taxable income.
So the company shall recoginze defferd tax asset for this expense in current year. Following entries will be made by the company for financial accounting purpose.
Deffered Tax Asset Debit $125000
Deffered Tax Income $125000
(Assuming applicable tax rates is 25%)
The next year when the warranty claim will be incured/paid the company will reverse the above entry and can claim tax deduction against this waranty cost paid but not on provision basis.
If the price of the steel used to produce steel falls, it would cause the price of American cars to fall.
<h3>How does the price of resources affect demand?</h3>
The price of a resource used in the production of goods can have a huge effect on the price.
If the price of steel is high, it would make the price of cars to be on the increase hence reducing the demand for the product in the market.
Read more on demand here:
brainly.com/question/1288364
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Answer:
Explanation:
Grand prize = $15,000
Second prize = $1,500
Number of tickets sold = 12,000
The probability of getting the grand prize ($15,000) is 1/12,000
The probability of getting the second prize ($1,500) is 1/12,000
Each ticket costs $4
Expected value is -4 + 1/12,000 X 15,000 + 1/12,000 X 1,500
= -1.5.
The expected winnings for a ticket buyer is therefore -$1.5
Answer: the correct ianswer is B. Income is a flow variable; wealth is a stock variable.
Explanation:
A stock is measured at one specific time, and represents a quantity existing at that point in time (say, December 31, 2004), which may have accumulated in the past. A flow variable is measured over an interval of time. Therefore, a flow would be measured per unit of time (say a year).
Answer:
Yr. amount Interest payment balance
1. 319,500 22365. (77923). 263,942
2. 263,942.18,476. (77,923). 204,495
3. 204,495 14315. (77923). 140,887
4. 140,887. 9862 (77923). 72,826
5. 72826. 5098. (77,923). 1
Explanation:
The interest charge is on the total amount due at the end of the year which is assumed to have been made available to the debtor, the annual payment is deducted from the addition of interest and principal due and the balance due is brought forward to be defray in subsequent years. The balance is expected to show zero but the balance of one shown is a roundup error.
