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Ad libitum [116K]
2 years ago
13

Major Co. reported 2016 income of $303,000 from continuing operations before income taxes and a before-tax loss on discontinued

operations of $75,000. All income is subject to a 36% tax rate. In the 2016 income statement, Major Co. would show the following line-item amounts for income tax expense and net income: Multiple Choice $109,080 and $228,000. $82,080 and $378,000. $109,080 and $145,920. $82,080 and $193,920.
Business
1 answer:
Mama L [17]2 years ago
3 0

Answer: $109,080; $145,920

Explanation:

Based on the information that have been provided in the question, the following can be gotten:

The amount for income tax expenses will be:

= 36% of $303,000

= 36/100 × $303,000

= 0.36 × $303,000

= $109,080

The net income will be:

Reported income = $303,000

Less income tax = $109,080

Less loss on discounted operation = $48,000

Net income = $145,920

Loss on discounted operation:

= $75,000 × (1 - 36%)

= $75,000 × (1 - 0.36)

= $75,000 × 0.64

= $48,000

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When making a decision, only relevant items are included in the analysis of the alternatives when using ______.
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Answer:

Explanation:

When making a decision, irrelevant items are included in the analysis in both alternatives when using: the total cost approach only.

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2 years ago
The substitution effect of an increase in the price of Raisin Bran refers to Select one: a. the decrease in the demand for Raisi
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Answer:

the fact that the higher price of Raisin Bran relative to its substitutes, such as Cheerios, causes consumers to buy less Raisin Bran.

Explanation:

the substitution effect arises when as a result of a rise in the price of a good, the good becomes more expensive relative to its substitutes. Consumers not consume less of the good and more of the substitute. This leads to a movement up along the demand curve for that goods and not a movement along the demand curve for the good and not a shift of the demand curve.

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The income effect is when an increase in price lowers consumer's purchasing power, holding money income constant.

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2 years ago
On October 1, Courtland Company sold merchandise in the amount of $5,800 to Carter Company, with credit terms of 2/10, n/30. The
Vilka [71]

Answer:

The journal entry that Courtland makes on October 8 is:

Debit Cash $5,684

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Explanation:

On October 1, when Courtland Company sold merchandise, the following entries were made:

1. Debit Cost of goods sold $4,000

Credit Merchandise $4,000

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3 years ago
What factors caused american business to develop into a mixed economic system rather than some other type of economic system?
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Other factors such as <span>foreign competition, the Great Depression, World Wars I and II, and the increasing age of population have also contributed to the mixed economic system.</span>

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3 years ago
Read 2 more answers
Terps Company reports the following amounts: Book Value Fair Value Assets $ 400,000 $ 500,000 Liabilities 45,000 45,000 Net inco
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Answer:

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