Answer:
E) Trading company
Explanation:
In international trade, trading companies are basically wholesalers that work at an international level. They usually purchase products from different businesses and then resell them to local retail businesses or sometimes final consumers (less common). Trading companies generally enter a exclusive distribution agreement with the manufacturer per region or country that they operate in.
The coupons paid by municipal bonds are exempt from federal income tax and from state tax in many states. Therefore, the higher the tax bracket that the investor is in, the more valuable the tax-exempt feature to the investor.
Answer:
The income tax expense for 2021 income statement is $101 million as computed in the explanation section below.
Explanation:
The income tax expense in the year 2021 is the income taxes payable while adding the reduction in deferred tax asset or deducting the increase in deferred tax asset plus the portion of the current deferred tax asset not realizable using the applicable tax rate as found below:
Income tax payable $90 million
deduct;increase in deferred tax asset($170-$130) ($40 million)
Add;unrealized deferred tax asset($170*30%) $51 million
Income tax expense for 2021 income statement $101 million
Answer:
$2914
Explanation:
The following steps would be taken to determine the answer
1. Calculate depreciation expense given the initial information
2. calculate the accumulated depreciation by the second year. Accumulated depreciation is sum of depreciation expense
3. subtract the accumulated depreciation from the cost price of the asset. This would give the book value
4. calculate the depreciation expense using the new information and the book value
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($9,920 - $1240) / 5 = $1736
Accumulated depreciation = 1736 x 2 = $3472
Book value at the beginning of 2021 = 9920 - 3472 = $6448
Depreciation expense in 2021 = (6448 - 620) / 2 = $2914
