Answer:
$105,000
Explanation:
Calculation for How much income tax expense is recognized in the secound quarter of 2021
Secound quarter income tax expense=$300,000 × .35
Secound quarter income tax expense= $105,000
Therefore How much income tax expense is recognized in the secound quarter of 2021 is $105,000
Based on this information alone, the company's retained earnings equal $3,000.
<h3>Retained earning</h3>
Using this formula
Retained earning= Assets-liabilities-Common stock
Where:
Assets=$10,000
Liabilities=$2,000
Common stock=$5,000
Let plug in the formula
Retained earning=$10,000-$2,000-$5,000
Retained earning=$3,000
Inconclusion the company's retained earnings equal $3,000.
Learn more about retained earning here:brainly.com/question/25631040
Answer:
Explanation:
a. The computation of the ending inventory is shown below:
Inventory Quantity Cost NRV LCM Total inventory
(1) (2) (1 × 2)
Unit A 14 $38 $40 $38 $532
Unit B 22 $42 $39 $39 $858
Unit C 16 $27 $31 $27 $432
Unit D 19 $18 $17 $17 $323
Total $2,145
And total cost = Unit A × cost + Unit A × cost + Unit A × cost + Unit A × cost
= 14 × $38 + 22 × $42 + 16 × $27 + 19 × $18
= $532 + $924 + $432 + $342
= $2,230
b. The journal entry is shown below:
Income summary A/c Dr $85 ($2,230 - $2,145)
To Inventory A/c $85
(Being inventory is adjusted)
Answer:
The tax on Kaitlyn's capital gain was $100
Explanation:
In order to calculate the tax on Kaitlyn's capital gain we would have to calculate first the Nominal capital gain as follows:
nominal capital gain=$400 - $200
nominal capital gain= $200
Therefore, tax on Kaitlyn's capital gain= tax percentage×nominal capital gain
=50%×$200
=$100
The tax on Kaitlyn's capital gain was $100
Answer:
Deferred Tax Asset:
The amount of taxes that is paid or carried forward but not yet identified in the income statement is referred as deferred tax asset
Journal Entries:
Debit: Income Tax Expense (balancing amount) = 812,500
Debit: Deferred Tax Asset = 87,500
Credit: Income Tax Payable = 900,000
- Income tax expense reduces the stockholders. equity. Hence, debit income tax expense with $812,500
.
- Deferred tax asset is an asset and is increased by $87,500. Therefore, debit deferred tax asset account with $87,500.
- Income tax payable increases the liability by $900,000. Therefore, credit Income tax payable account with $900.000.
Working note:
Determine the amount of deferred tax asset.
Deferred tax asset = Rent collected in 2021 × Enacted tax rate
Deferred tax asset = $350,000 × 25%
Deferred tax asset = $87,500
Determine the amount of income tax expense.
Income tax expense = Income tax payable — Deferred tax asset
Income tax expense = $900,000 = $87,500
Income tax expense = $812,500
