Answer:
The correct answer is D.
Explanation:
Giving the following information:
Maker Co. discovered that in the prior year it incorrectly calculated depreciation expense and reported $75,000 in depreciation expense instead of the correct depreciation expense of $50,000. The tax rate for the current year was 35%.
We need to calculate two different impacts:
Accumulated depreciation= actual depreciation - original depreciation
Accumulated depreciation= 50,000 - 75,000= 25,000 overstated
Now, the effect on income:
Savings in tax= 25,000*0.35= $8,750
Answer:
1. $3,067
2. B) $129,127.
Explanation:
a. The computation of amount deposit in transit is shown below:
The amount of deposit in Transit = Balance as per Cash Book as on 30th Sept - Cheque outstanding realized - Bank charges - Balance as per Bank Book
= $12,596 + $6740 - $16 - $16,253
= $3,067
Deposit in Transit inflates the general ledger initially till it is credited in the bank book.
b. The computation of balance should Cardinal's Cash account show
Cash Account should show a balance = Bank Statement Balance as on May 31 - Outstanding Cheque on May 31
= $180,974 - $51,847
= $129,127
As we can see that the cash account balance is less because there is an outstanding
Answer: a good with an elastic supply
Explanation:
Price elasticity of supply simply refers to how the changes in market price of a good bring about a responsiveness to the supply of such good.
Based on the information given, the best description of the grass seed that is described in this scenario is that it's a good that has an elastic supply. This is because the price of the good in thus case, is sensitive to the changes in the price.
8,400 is your answer all you have to do is add the 4 sales and subtract the discounts and the returns
Answer:
The correct answer is (D)
Explanation:
Financial reporting is a complex task which requires an expert to handle them accurately. Companies make many changes in the real data to slip from government taxes and they usually report losses. Auditors are the one responsible to find discrepancies in the financial reporting. So, the primary responsibility rests with the auditors for accurate financial reporting.
