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andrew-mc [135]
4 years ago
9

Lake Corp., a newly organized company, reported pretax financial income of $100,000 for 20X0. Among the items reported in Lake's

20X0 income statement are the following:
Premium on officer's life insurance with Lake as owner and beneficiary of $15,000

Interest received on municipal bonds of $ 20,000

The enacted tax rate for 20X0 is 30% and 25% thereafter. In its December 31, 20X0, balance sheet, Lake should report a deferred income tax liability of:

a.$4,500

b.$0

c.$3,750

d.$28,500
Business
1 answer:
liubo4ka [24]4 years ago
6 0

Answer:

b.$0

Explanation:

As we know that

When there is a temporary discrepancy between financial income and taxable income a deferred tax benefit or liability occurs. Temporary difference means an benefit or cost with respect to treatment that has just a timing gap.

Moreover, the Premium on officer's life insurance is tax deductible i.e $15,000  as it is paid by the company due to which difference arise between the financial and taxable income.

And,  

Interest received on municipal bonds $20,000 are mostly exempt from federal income tax.

Therefore, it shows no such difference as it indicates the permanent difference

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In order to sound businesslike, many writers mistakenly use stale expressions, thinking they sound more impressive. Which of the
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Answer:

The correct answer is letter "A", "B", and "C": Please; At your request; Thank you.

Explanation:

Stale or trite phrases are used in business but they interfere with clarity and directness because they tend to be redundant. These phrases unnecessarily increment the length of a message. Examples of stale phrases are: "<em>Enclosed please find...</em>" or "<em>With reference to...</em>".  

"<em>Please</em>", "<em>At your request</em>", and "<em>Thank you</em>" are straight-clear phrases.

7 0
4 years ago
Robert mondavi wineries entered into an agreement with baron philippe de rothschild, owner of boreaux's first growth chateau, to
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A joint venture.

In a joint venture, 2 or more companies partner on a project while maintaining their individual company identities.

3 0
4 years ago
A monopolist A. can charge whatever price it wants because it is the only firm producing the good. B. can usually keep price equ
Igoryamba

Answer: A monopolist "C. is constrained in its pricing decisions by the demand curve it faces."

Explanation: The market demand curve (negative slope) for a company that exercises a monopoly position is very important, since it is the one that marks the limit to its decision making. For example, a company that would like to increase its price to the highest possible level could do so, but as the price increases, the quantity it sells is reduced, with which the maximum possible price would lead it to have a demand of zero. On the other hand, if you want to produce as much as possible, again the demand curve works as a border, because for the demand in the market to acquire a greater amount, the price at which you must sell your product is reduced, to the point in that it can meet all the demand at the intersection in the demand curve on the horizontal axis, but at this level the price of the product should be zero. Then it is clear that the demand in the market marks an important restriction for the company to choose an amount or the price at which it will produce.

8 0
3 years ago
All of the following would be part of the launch of a new product except Group of answer choices determining the marketing budge
liberstina [14]

Answer:

The correct option is starting to make preliminary decisions about target market.

Explanation:

Ascertaining how the product marketing campaign for the first of product launch is one of the processes of a new product launch as the awareness of the new product must be brought to the attention of would-be customers.

Finalizing marketing  mix variables such price,product,place and promotion is also a critical stage of the new product launch.

Determining the price at which the product should sell for is also included in the process of the new product launch,however price is determined with reference to the following points:

Cost of the product with an extra on top of it as mark-up

What customers can afford to pay

What competitors are charging

Corporate objectives

6 0
4 years ago
Sanfillipo, Inc., had 800 units of inventory on hand at March 1 of the current year, costing $20 each. Purchases and sales of in
stira [4]

Answer:

According to a physical count, 600 units were on hand at the end of March. The cost of goods sold for March applying the FIFO method is:

$1081600

Explanation:

MARCH 1  800 20  

MARCH 8 8600 22  

MARCH 8 15400 22  

MARCH 8 22400 24  

MARCH 8 27400 24  

Final Inv.   600    

Sell units        74000    

   

FIFO Purch. Unit cost Sell Un. Cost

MARCH 1  800 20 800         16000

MARCH 8 8600 22 8600 189200

MARCH 8 15400 22 15400 338800

MARCH 8 22400 24 22400 537600

MARCH 8 27400 24 26800 643200

                           74000 1081600

7 0
3 years ago
Read 2 more answers
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