Answer:
$242,800
Explanation:
Tax Base Accounting Base Temporary Difference
2021 Insurance Expense $234,000 0 $234,000
This insurance expense will result in taxable temporary difference=$234,000*20%=$46,800
The journal entry will be;
Income Tax Expense Dr.$46,800
Deferred Tax liability Cr.$46,800
Therefore Income tax expense will be=$196,000+$46,800=$242,800
Answer:
$77,280
Explanation:
Calculation for what is the depreciation tax shield amount for Year 2020 at a tax rate of 21 percent
Using this formula
Depreciation Tax Shield =Initial equipment cost*tax rate
Let plug in the formula
Depreciation Tax Shield = $368,000*21%
Depreciation Tax Shield = $77,280
Therefore the Depreciation Tax Shield will be $77,280
They are made out of industrial screwdriver blades and they have screws in them that help them seal up things that are broken
Answer:
The answer is option "iii) The relative price of yogurt increased"
Explanation:
The budget line is a function of a consumer's budget constraint. With the quantity of one good on the y axis and the quantity of the other good on the x axis, the budget line shows how much of each good the consumer can buy from a defined, limited budget.
In our example, the customer's budget is $20 which mean the customer can buy any combination of goods between the two extreme. One extreme is 10 of Yogurt ($20 budget/$2 Price) while the other extreme is 5 of cereal ($20 budget/$4 price). So the budget line is a downward sloping line from point 10 on the y axis to point 5 on the axis.
Option i) is incorrect since the increase in the price of yogurt would mean that the consumer can buy ONLY less of yogurt. It does not impact the quantity of cereal that he can buy. So the line will rotate downward along the <em><u>y axis</u></em>. The x axis will remain unchanged since the maximum amount of cereal Billy can buy remains unchanged. An outward rotation would occur only if the price of <em><u>cereal decreased</u></em>. This does not happen in this case therefore the line would not rotate outward.
Option ii) is incorrect because the marginal utility. The law of marginal utility states that the utility, or the pleasure, one gets from consuming a good decreases as more and more of the same good is being consumed. This does not happen in this case.
Option iii) is correct. This is called the<em> slope effect</em>. Since the Billy can consume less yogurt (since the price of yogurt increased), the relative price of yogurt increases while the relative price of cereal decreases. Think of relative price of yogurt as the number of units of cereal that Billy would have to forgo to consumer 1 unit of yogurt. Since yogurt has gotten expensive, Billy would have to give up more units of cereal to consumer 1 unit of yogurt.
Answer:
$64,000
Explanation:
product cost data market data lower of cost or market
ipod 24,000 20,400 20,400
cell phone 18,000 19,000 18,000
DVDs 28,000 25,600 25,600
ending inventory = 20,400 + 18,000 + 25,600
= $64,000
Therefore, The value of the ending inventory is $64,000
