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3 years ago

Sandhill Corporation has temporary differences at December 31, 2020, that result in the following deferred taxes.

Business

1 answer:

azamat3 years ago

6 0

Answer: Please refer to Explanation

Explanation:

As per the US GAAP and IFRS, Deferred Tax Liabilities and Assets are not to be reported as Current Assets or Liabilities but rather as Non Current items.

Assets

Warranty Liability $57,400

Litigation Accruals $ 27,800

Total Deferred Tax Assets $85,200

Liabilities

Revenue Recognition $93,600

Depreciation $38,000

Total Deferred Tax Liabilities $131,600

Total Net Deferred Tax Liability $46,400

Total Net Deferred Tax Liability calculation

= $131,600 - $85,200

= $46,400

The above is how these balances would be presented in Sandhill’s December 31, 2020 balance sheet.

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DM Corporation has provided you with the follwing budgeted income statement for one of its products:

Arturiano [62]

Answer:

A) operating income decreases by $84,000

Explanation:

Sales $700,000 ⇒ ELIMINATED, SINCE THE PRODUCTS WILL NOT BE SOLD ANYMORE

Variable Expenses ($430,000) ⇒ ELIMINATED, SINCE THE PRODUCTS WILL NOT BE SOLD ANYMORE

Fixed Expenses ($310,000) ⇒ REDUCED BY 60% TO ($124,000)

Operating Loss ($40,000) ⇒ INCOME WILL DECREASE IN TOTAL BY $124,000

Since the total decrease income will be $124,000, that represents = $124,000 (unavoidable fixed costs) - $40,000 (current loss) = $84,000 in additional losses

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4 years ago

Clemmens Company applies overhead based on direct labor cost. Estimated overhead and direct labor costs for the year were $116,5

Alex17521 [72]

Answer:

$415 underapplied (debit balance)

Explanation:

Predetermined OH rate =

$116,500/$124,500 = 93%

OH applied = $114,500(.93)

= $106,485

Applied $106,485– Actual $106,900

= $415 underapplied (debit balance)

Therefore the entry to close the over- or underapplied overhead at year-end, assuming an immaterial amount, would include $415 underapplied (debit balance)

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3 years ago

True or False: Organizations can identify potential targets for theft and diversion by working with security or law enforcement

const2013 [10]

The answer is true because by working with security or law enforcement experts your organization is more safe

8 0

3 years ago

Edwin, an employee at an auto assembly plant for a U.S. auto manufacturer, manages a group of employees who measure the quality

stira [4]

Answer:

Inbound quality inspection department of supply chain management

Explanation:

Purchasing department create purchase order for any product from supply.

once the order shipment reaches to plant, the quality of product is inspected whether product adheres to specification requested during purchase order creation. since product reaches to plant it is inbound logistic and hence inspection of those is termed as inbound logistic inspection.

Inbound logistic inspection is significant part of supply chain management.

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4 years ago

Pina Colada Corp. holds Tamarisk, Inc. $44400, 120-day, 15% note. The entry made by Pina Colada Corp. when the note is collected

Dafna1 [17]

Answer and Explanation:

The journal entry is shown below

Cash $46,620

To Notes Receivable $44,400

To Interest receivable ($44,400 × 15% × 120 days ÷ 360 days)

(Being the cash received is recorded)

Here we debited the cash as it increased the assets and at the same time we credited the interest receivable and the note receivable as it decreased the assets

The same is to be considered

7 0

3 years ago