1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
koban [17]
3 years ago
8

Hopkins Co. at the end of 2017, its first year of operations, prepared a reconciliation between pretax financial income and taxa

ble income as follows:Pretax financial income...................$3,000,000Estimated litigation expense...........4,000,000Extra depreciation for taxes...........(6,000,000)Taxable income........................................$100,000The estimated litigation expense of $4,000,000 will be deductible in 2018 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $2,000,000 in each of the next three years. The income tax rate is 30% for all years.The deferred tax liability to be recognized is1. $900,000.2. $1,200,000.3. $1,800,000.4. $1,500,000.
Business
1 answer:
klemol [59]3 years ago
5 0

Answer:

$1,200,000

Explanation:

Estimated Letigation Expenses      4,000,000.00

Tax Rate                                               30%

Deferred Tax Assets                       1,200,000.00

Estimated Litigation Expenses which is disallowed for tax purposes will be future deductible expenses when we will make the actual payment of the liability. So the Tax liability in the future year will decrease, so we will make the Deferred Tax Assets for this.

Therefore, The deferred tax liability to be recognized is 1,200,000

You might be interested in
Please somebody help me
OLEGan [10]

1.Ph.D

2. training

3. bachelors degree

8 0
3 years ago
A subsidiary ledger:(A) used in place of the general ledger if the general ledger is destroyed or stolen.(B) a group of accounts
gayaneshka [121]

Answer:

The correct option is C

Explanation:

Subsidiary ledger are those kind of the ledger which is stated as the group of the similar or common accounts, whose combined balances are equal to the balance in the particular account of general ledger.

The general ledger is the account that summarizes or provide detailed information of the account balances of the subsidiary ledger is recognized as the control account or the master account.

The subsidiary ledger are those group of accounts which have a similar characteristic and provide summarized information regarding the control account.

3 0
3 years ago
Lisa Richter deposited $5,000 at 4% compounded semiannually for three years. At the beginning of the fourth year, Lisa deposited
Contact [7]

Answer:

Answer is option (d) $8,424

Explanation:

The total amount Lisa Richter will receive after the end of the first 3 years can be expressed using the formula for calculating the total amount after 3 years with interest compounded semiannually is as follows;

A = P (1 + r/n)^(nt)

where;

A = the future value of the initial investment

P = initial investment amount/principal amount

r = the annual interest rate

n = the number of times that interest is compounded per unit t

t = the time the money is invested for

In our case;

P=$5,000

r=4/100=0.04

n=interest is compounded semiannually which is twice a year=2

t=3 years

Replacing values in the formula;

A=5,000(1+0.04/2)^(2×3)

A=5,000(1+0.02)^6

A=5,000(1.02)^6

A=$5,630.81

Total amount after the end of the first 3 years=$5,630.81

To calculate the total principal amount for the fourth year;

Total principal amount=Total amount after 3 years+Amount deposited at the beginning of the fourth year

where;

Total amount after 3 years=$5,630.81

Amount deposited at the beginning of the fourth year=$2500

replacing;

Total principal amount=(5,630.81+2500)=8,130.81

Using the formula;

A = P (1 + r/n)^(nt)

P=$8,130.81

r=4/100=0.04

n=compounded semiannually=2

t=1 year

replacing;

A=8,130.81(1+0.04/2)^(2×1)

A=8,130.81(1.02)^2

A=8,459.29

Option (d)  $8,424 is closer to 8,459.29, take answer as (d) $8,424

7 0
3 years ago
The city fire department offers its services to any individual within its city limits, so even paul, who is driving through the
Sholpan [36]
I would say that the fire department is an example of an organization with universal coverage something like pensions and medicare pthat are provided to all citizens of a country regardless of their income and so is an equitable system. Consequently then I would say that the fire department is an example of a commonwealth organization.
4 0
3 years ago
Read 2 more answers
In what ways does the format of a statement of financial or position under ifrs often differ from a balance sheet presented unde
Amiraneli [1.4K]
Umm can someone answer this please because i need help on this as well
7 0
3 years ago
Other questions:
  • HElP PLEEEASE!!
    15·2 answers
  • When Coca Cola introduced Coke Zero,this was an example of a _____ strategy.
    13·1 answer
  • ​the marketing concept is a ______________ that guides the overall activities of an organization. it has evolved over time from
    6·1 answer
  • David wynn gets an auto loan from his credit union for $10,000. david will make monthly payments over the next four years to rep
    9·1 answer
  • List several factors that help identify inappropriate, unsound, and possibly dangerous commercial weight loss programs
    10·1 answer
  • Hi Tech Products has 35,000 bonds outstanding that are currently quoted at 102.3. The bonds mature in 11 years and carry a 9 per
    12·1 answer
  • Without ________ control, a business may fail. 7 letter word
    15·1 answer
  • SnowPants for the children’s department cost $27.60 each. If a 54% markup is required, what minimum retail would achieve this ma
    8·1 answer
  • Carla McFarland was an associate professor of English literature at Highland College. She was the only single person in her depa
    12·1 answer
  • A ______ the demand curve represents a change in demand while a ______ the demand curve represents a change in the quantity dema
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!