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klemol [59]
3 years ago
11

Edward McDowell Co. establishes a $138,000,000 liability at the end of 2020 for the estimated site-cleanup costs at two of its m

anufacturing facilities. All related closing costs will be paid and deducted on the tax return in 2021. Also, at the end of 2020, the company has $69,000,000 of temporary differences due to excess depreciation for tax purposes, $9,660,000 of which will reverse in 2021. The enacted tax rate for all years is 20%, and the company pays taxes of $44,160,000 on $220,800,000 of taxable income in 2020. McDowell expects to have taxable income in 2021.
Determine the deferred taxes to be reported at the end of 2020.
Business
1 answer:
grin007 [14]3 years ago
4 0

Answer:

The answer is given below;

Explanation:

Site-cleanup costs    $138,000,000

This will give rise to deferred tax asset of $138,000,000*20%=$27,600,000

Tax Depreciation excessive for the year=$9,660,000

Excess tax depreciation deducted in current year will give rise to deferred tax liability=$9,660,000*20%=$1,932,000

Current Tax Expense =$44,160,000

Deferred Tax During 2020 are;

Deferred Tax Asset   $9,660,000

Deferred Tax Liability $1,932,000

Current Tax Expense  $44,160,000

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A

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Total slack measures the total amount of time a project can be delayed before the project's completion.

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4 0
3 years ago
Which of these statements best represents the law of supply?
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Answer:

The correct answer would be option C, When the price of a good decreases, sellers produce less of the good.

Explanation:

According to the law of supply, when the price of the product increases, the quantity supplied also increases.

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8 0
3 years ago
Which of the following is an example of a relationship with a negative slope?
iren [92.7K]

Answer:

c. ​ More items purchased when prices drop

Explanation:

Lets determine the two variables and their relation in each of the cases.

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Sweet Treats common stock is currently priced at $17.15 a share. The company just paid $1.22 per share as its annual dividend. T
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9.68 percent

Explanation:

Calculation to determine the firm's cost of equity

Using this formula

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Cost of equity=[($1.22 × 1.024)/$17.15] + 0.024

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Cost of equity=9.68 percent

Therefore the firm's cost of equity is 9.68 percent

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