The difference between nominal GDP and real GDP is

Grand River Corporation reported taxable income of $500,000 in year 1 and paid federal income taxes of $105,000. Not included in

kondor19780726 [428]

The corporation's current earnings and profits for year one would be (A) $354,000.

<h3>What is taxable income?</h3>

The base on which an income tax system levies tax is referred to as taxable income.
In other words, the income is subject to taxation by the government.
In general, it includes some or all elements of income before costs and other deductions are deducted.
Income, costs, and other deductions differ depending on the country or system.
Many systems stipulate that certain types of income are not taxable (also known as non-assessable income) and that certain expenses are not deductible when calculating taxable income.
Some systems base tax on current-period taxable income, while others base it on prior-period taxable income.

<h3>To find the current earnings and profit for one year:</h3>

Income + Installment sale = 500,000 + 25,000 = $525,000

Income taxes + tax-exempt income = 170,000 + 1000 = $171,000

525,000 - 171,000 = $354,000

Therefore, the corporation's current earnings and profits for year one would be (A) $354,000.

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Complete question:

Grand River Corporation reported taxable income of $500,000 in year 1 and paid federal income taxes of $170,000. Not included in the computation was a disallowed meal and entertainment expense of $2,000, tax-exempt income of $1,000, and deferred gain on an installment sale of $25,000. The corporation's current earnings and profits for year 1 would be:

A) $354,000.

B) $524,000.

C) $500,000.

D) $331,000.

7 0

2 years ago

Hexon Printing Company projected the following information for next year: Selling price per unit $80 Contribution margin per uni

Nonamiya [84]

Answer:

Break-even point in units= 5,500

Explanation:

Giving the following information:

Selling price per unit $80

Contribution margin per unit $40

Total fixed costs $120,000

Tax rate 40%

Desired profit= $60,000

<u>First, we need to calculate the earnings before tax:</u>

EBT= desired profit / (1 - t)

EBT= 60,000 / (1 - 0.4)

EBT= $100,000

<u>Now, the break-even point in units using the following formula:</u>

Break-even point in units= (fixed costs + EBT)/ contribution margin per unit

Break-even point in units= (120,000 + 100,000) / (80 - 40)

Break-even point in units= 5,500

5 0

3 years ago

A company makes travel umbrellas. Its fixed costs are $1000 a week and its variable costs for one batch of umbrellas per week is

Lady_Fox [76]

Answer:

Break-even point in units= 93 units

Explanation:

Giving the following information:

Its fixed costs are $1000 a week and its variable costs for one batch of umbrellas per week are $500 for 2000 units.

After doing market research, the company sets the price per umbrella at $11.

Unitary variable cost= 500/2,000= $0.25

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 1,000/ (11 - 0.25)

Break-even point in units= 93 units

3 0

3 years ago

Wolfe Company had the following beginning inventory and purchases during 2018 Date Transaction Number of units Unit Cost 1/1 Beg

forsale [732]

Answer:

Wolfe Company

The amount of:

LIFO FIFO Weighted Average

Ending inventory $50,500 $65,100 $58,005

Cost of goods sold $113,200 $98,600 $105,698

Explanation:

a) Data and Calculations:

Date Transaction Number of units Unit Cost Cost Value

1/1 Beginning inventory 2,000 $22.00 $44,000

4/12 Purchase No. 1 2,300 $26.00 59,800

7/11 Purchase No. 2 800 $28.00 22,400

10/5 Purchase No. 3 1,250 $30.00 37,500

Total inventory available 6,350 $163,700

Wolfe sold 4,100

Ending Inventory 2,250

LIFO

Ending Inventory = $50,500 (250 * $26 + 2,000 * $22)

Cost of goods sold:

4/12 Purchase No. 1 2,050 $26.00 53,300

7/11 Purchase No. 2 800 $28.00 22,400

10/5 Purchase No. 3 1,250 $30.00 37,500

Total cost of goods sold = 4,100 $113,200

FIFO:

Ending Inventory = Cost of goods available for sale - Cost of goods sold

= $65,100 ($163,700 - $98,600)

Cost of goods sold:

1/1 Beginning inventory 2,000 $22.00 $44,000

4/12 Purchase No. 1 2,100 $26.00 54,600

Total cost of goods sold = $98,600

Weighted average:

Weighted average cost = $25.78 ($163,700/6,350)

Ending inventory = $58,005 (2,250 * $25.78)

Cost of goods sold = $105,698 (4,100 * $25.78)

4 0

3 years ago

Assume MU_c and Mu_d represent the marginal utility that a consumer gets from products C and D, the respective prices of which a

lana [24]

Answer:

<h2>The correct answer in this case is option C. or MU(c)/P(c)>MU(d)/P(d).</h2>

Explanation:

Under consumer equilibrium theory for two commodity model,a rational consumer maximizes his or her utility when the marginal utility(MU) obtained from consuming one good is equal to the same of the other.This is the fundamental essence of the Law of Equimarginal Utility in Economics.Now,in this case,the consumer will purchase more of good C than good D if the Marginal utility obtained from one unit of good C or MU(c) for the money spend on consumption of good C or price of C,P(c) is greater than the marginal utility obtained from consuming 1 more unit of good D or MU(d) for money spend on purchase of good D or price of that particular unit of D or P(d).Therefore,since the marginal satisfaction compared to the amount of money spend for the consumer is higher for good C compared to the other or good D,it will increase the total utility level of the consumer from that particular consumption bundle or pattern.Hence,he or she will spend more on the consumption of good C than good D.

8 0

3 years ago