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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

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Based on the corporate valuation model, gray entertainment's total corporate value is $1,150 million. the company's balance shee
vagabundo [1.1K]

Answer:

$26.67 million

Explanation:

The computation of price per share is shown below:-

Total market value = $1,150 million + $120 million

= $1,270 million

Market value of equity = Total market value - value of debt - value of preferred stock

= $1,270 million - ($120 million + $300 million + $50 million)

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5 0
3 years ago
A company offered one half of its employees a bonus if the production of light bulbs increased by 30%. The other half of the emp
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Based on the statement above their need to separate the employee first because there is an employee get bonus and dont. so the correct order of steps to determine the significant result are: c. B,E,D,C,A

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The chart indicates the education or training histories of three employees in the Agriculture, Food, and Natural Resources caree
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3 years ago
Read 2 more answers
nformation taken from a Sears, Roebuck and Company annual report follows. December 31 Long-Term Debt ($ in millions) Year 2 Year
cestrela7 [59]

Answer:

The interest expense company recorded during Year 2 on the 7% debentures is $27,535,600

Explanation:

As the interest expense is different from the interest payment made on the debenture. It also includes some other costs. Effective interest rate includes the effects of all related costs of debentures. So the interest expense of a debenture will base the effective interest rate of the debenture.

We can calculate the Interest expense on 7% debtures as below

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5 0
3 years ago
Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicat
marshall27 [118]

Answer:

The journal entry to record the flow of costs into Department 1 during the period for applied overhead is

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Applied overheads are determined by multiplying the Actual Activity (example hours) and Budgeted Overhead Rate. In Our question this figure is given as $150,000.

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