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muminat
3 years ago
6

Assume that Firm ABC has revenues of $120,000 for both 2017 and 2018. It also has operating expenses of $40,000 for each of thes

e years. In addition, Firm ABC accrues a loss and related liability of $10,000 for financial reporting purposes because of pending litigation. Firm ABC cannot deduct this amount for tax purposes until it pays the liability, expected in 2018. As a result, a deductible amount will occur in 2018 when Firm ABC settles the liability, causing taxable income to be lower than pretax financial information.
2017 2018
Revenues 120,000 120,000
Expenses 40,000 40,000
Litigation Loss 10,000
Pretax Financial Income 70,000 80,000
Income Tax Expense (40%) 28,000 32,000
2017 2018
Revenues 120,000 120,000
Expenses 40,000 40,000
Litigation Loss 10,000
Taxable Income 80,000 70,000
Income Tax Expense (40%) 32,000 28,000
Q1) Journalize the entry at 12/31/2017 to record income tax expense, deferred tax asset, and income taxes payable:
Q2) Journalize the entry at 12/31/2018 to record income tax expense, deferred tax asset, and income taxes payable:
Business
1 answer:
ivolga24 [154]3 years ago
3 0

Answer:

1) deferred tax asset = 4000

2) deffered tax Liability  = 4000

Explanation:

1) Journalizing entry at 12/31/2017

deferred tax asset = tax ( per income tax) - tax ( per book tax )

                              = 32000 - 28000 = 4000

 J<u>ournal Entry made for Income tax and deferred tax asset) </u>

       Account                           Debit Credit

Income Tax Expense                28000  

Deffered Tax Asset                4000  

Income Tax Payable                                     32000

2) Journalizing entry at 12/31/2018

Deffered tax Liability = Tax (per book)  - Tax ( Income tax  )

deffered tax Liability = 32000 - 28000  = 4000

    <u>Journal Entry made for Income tax and deffered tax liability</u>

          Account                        Debit Credit

Income Tax Expense              32000  

To Deffered Tax Liability                    4000

To Income Tax Payable                                    28000

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Explain the importants of marketing segmentation
Nina [5.8K]

A market segment is a subgroup of people or organizations that have one or more characteristics in common that cause them to have the same product needs. Everyone needs water to drink, but does everyone need bottled water? For companies to successfully reach their precise customer, they need to divide a market into similar and identifiable segments through market segmentation.

The main reason companies divide markets into identifiable groups is so that the marketing team can create a custom marketing mix for the specific group. For example, Farmer Joseph realized early on that not everyone would purchase his expensive organic produce. He did not want to exhaust his financial budget by advertising to the masses. Instead, he identified his target market and created a specific marketing plan to communicate effectively with his prime customers.

His target market consisted of females age 18-65, with an income of $50,000+, who have healthy eating habits and who are concerned about pesticides. His plan consisted of ad placement in local women's magazines, newspapers and also email blasts to a list that he formulated with age and income specifics. Lastly, he advertised with a local gym about his healthy produce. Marketers have numerous choices in how they can segment a market.

If the farmer had planned on targeting everyone, then the type of segmentation would have been called no market segmentation. The opposite type of segmentation would be if he decided to target based on every individual factor available. This would be called a fully segmented market. Other choices include segmenting just by gender, income, lifestyle, ethnicity, family life cycle, age group, or even a combination-type.

Companies will not survive if the marketing strategy is dependent upon targeting an entire mass market. The importance of market segmentation is that it allows a business to precisely reach a consumer with specific needs and wants. In the long run, this benefits the company because they are able to use their corporate resources more effectively and make better strategic marketing decisions.

7 0
3 years ago
The perimeter of a rectangle with a width x and a length that is four times the widthA nursery has $55,000 of inventory in dogwo
nalin [4]

The question is incorrect. The correct question is as follows,

A nursery has $55,000 of inventory in dogwood trees and red maple trees. The profit on a dogwood tree is 28% and the profit on a red maple tree is 17%. The profit for the entire stock is 20%. How much was invested in each type of tree?

Answer:

The investment in Dogwood trees is $15000.

The investment in red maple trees is = $40000

Explanation:

To calculate the investment in each type of tree, we will say that x was invested in dogwood trees and the investment in red maple trees was 55000-x.

The profit on the entire investment is calculated as the weighted average of the profit on dogwood trees and profit on the red maple trees. The formula for overall profit can be written as follows,

Overall profit = Investment in dogwood / total investment * profit % on dogwood  +  Investment in red maple / total investment * profit % on red maple

0.2 = x / 55000 * 0.28  +  (55000 - x) / 55000 * 0.17

0.2 = 0.28x / 55000  +  (9350 - 0.17x) / 55000

0.2 = 0.28x + 9350 - 0.17x / 55000

0.2 * 55000 = 0.11x + 9350

11000 = 0.11x + 9350

11000 - 9350 = 0.11x

1650 / 0.11 = x

x = $15000

If x is $15000, this means that the investment in Dogwood trees is $15000.

If x is $15000, this means that the investment in red maple trees is 55000 - 15000 = $40000

4 0
3 years ago
From past experience, the company has learned that 25% of a month’s sales are collected in the month of sale, another 60% are co
iragen [17]

Part of the Question:

Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget for the second quarter given below:

                                                     April       May        June           Total

Budgeted sales (all on account) $310,000 $510,000 $160,000 $980,00

Answer:

1. A Schedule of Expected Cash Collections from Sales:

                                            April          May        June           Total for the

                                                                                                Quarter

25% sales month           $77,500    $127,500   $40,000     $245,000

60% 2nd month            222,000      186,000   306,000         714,000

15%  3rd month                51,000       55,500      46,500        153,000

Total cash collections $350,500  $369,000 $392,500     $1,112,000

2. Accounts Receivable balance on June 30th:

Total beginning balance      $328,500

Total quarter sales               $980,000

Total due from customers $1,308,500

Cash receipts for quarter    $1,112,000

Balance on June 30th          $196,500

Explanation:

a) Data and Calculations:

               Feb.         Mar.            April          May          June       Total for the

                                                                                                       Quarter

Sales   $340,000  $370,000 $310,000 $510,000  $160,000  $980,00

Cash:

25% sales month                    $77,500   $127,500   $40,000  $245,000

60% 2nd month     204,000  222,000     186,000   306,000     714,000

15%  3rd month                          51,000      55,500     46,500     153,000

Total cash collections          $350,500  $369,000 $392,500 $1,112,000

b) Account Receivable balance

April 1, Beginning balance       $51,000 from February

April 1, Beginning balance    $277,500 from March

Total beginning balance       $328,500

Total quarter sales                $980,000

Total due from customers $1,308,500

Cash receipts for quarter    $1,112,000

Balance on June 30th          $196,500

c)  The accounts receivable balance is the difference between the beginning balance of $328,500, the sales on account for the quarter of $1,308,500, and the cash receipts from customers for the quarter of $1,112,000.  This gives a balance of $196,500, which represents 75% of June sales of $120,000 and 15% of May Sales of $76,500.

4 0
3 years ago
An increase in the real wage would result in a:________. a. shift of the labor demand curve, causing an increase in the number o
barxatty [35]

Option C

An increase in the real wage would result in a: movement along the labor demand curve, causing a decrease in the number of workers hired by the firm.

<u>Explanation:</u>

The wage rate is circumscribed by the crossing of supply and demand for labor. The demand curve depends on the marginal product of labor and the cost of the good labor originates.

A variation in the wage or payroll will end in a shift in the amount necessitated of labor. If the wage rate increases, organizations will require to hire fewer employees. The quantity of labor demanded will decline, and there will be a movement skyward on the demand curve.

5 0
3 years ago
What is the first step to build a house of​ quality? A. Relate customer wants to product hows. B. Determine the desirable techni
prohojiy [21]

Answer:

The correct answer is C. Identify customer wants.

Explanation:

Despite the fact that the architects, due to their experience, can provide alternatives based on factors such as location, size, type of house, etc., the client's requirements play a very important role since, prior to this, they have designed in their minds what they would like to have. in your new house. The architects serve as support to give a professional touch to the property, but taking into account the requirements of the person it is possible to adjust certain aspects to offer the best possible experience when the construction is finished.

3 0
3 years ago
Read 2 more answers
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