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qaws [65]
3 years ago
15

In its 2021 income statement, Cohen Corp. reported depreciation of $3,700,000 and interest revenue on municipal obligations of $

700,000. Cohen reported depreciation of $5,500,000 on its 2021 income tax return. The depreciation difference will reverse equally over the next three years. Cohen's enacted income tax rates are 25% for 2021, 20% for 2022, and 15% for 2023 and 2024. What amount should be included in the deferred income tax liability in Hertz's December 31, 2021 balance sheet
Business
1 answer:
ella [17]3 years ago
5 0

Answer:

The correct answer is $300,000.

Explanation:

According to the scenario, the computation of the given data are as follows:

First we calculate the difference in depreciation,

So, difference in depreciation = $5,500,000 - $3,700,000 = $1,800,000

As, Depreciation is for 3 years,

So, depreciation per year = $1,800,000 ÷ 3 = $600,000

Now, we can calculate the deferred income tax liability as follows:

Deferred income tax liability = $600,000 × 20% + $600,000 × 15% + $600,000 × 15%

= $120,000 + $90,000 + $90,000

= $300,000

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Suppose you were writing a social media plan for Two Scoops, with two objectives: to improve brand awareness in new markets and
Bas_tet [7]

The competitive environment and consideration set themselves are further quantitative metrics of brand awareness. You can accomplish this by outlining your brand and the brands of your rivals, then asking people to rate their familiarity with each brand on a qualitative scale ranging from "well known" to "totally unknown."

<h2>What is the role of quantitative research?</h2>
  • Quantitative research is beneficial since it offers precise numbers for comparison and referencing. We occasionally collaborate with Research, a California-based market research company, to assist us in designing and putting into practice quantitative research tactics since we have faith in their knowledge in this field.
  • We can confidently identify trends, quantify feelings and behaviors, and comprehend the perception of a destination brand based on information from a representative sample of the area's population by conducting statistically accurate, multi-modal surveys (or a regional population if doing competitive or key market research).
<h2>What is the role of qualitative research?</h2>
  • Comparatively, qualitative research is far more subtle. Instead of stating an actual reality, it "summarizes and infers." Qualitative research sheds light on the history of your brand and the people it stands for, while quantitative research serves the purpose of giving you the hard data you need to support your decisions.

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3 0
2 years ago
A company is evaluating a new 4-year project. The equipment necessary for the project will cost $3,500,000 and can be sold for $
tresset_1 [31]

Answer:

d) $677,532.

Explanation:

1.

Written down value of the equipment after 4 years = Cost x ( 100% - 1st year MACRS - Second-year MACRS - Third-year MACRS - Fourth-year MACRS ) = $3,500,000 x ( 100% - 20% - 32% - 19.20% - 11.52% ) = $604,800

2.

Now calculate the gain on the sale of equipment

Gain on the sale of equipment = Sale Price - Written down Value after 4 years = $715,000 - $604,800 = $110,200

3.

Tax owed = Gain on the sale x Tax rate = $110,200 x 34% = $37,468

After-tax salvage value = Sales price - Tax = $715,000 - $37,468 = $677,532

4 0
2 years ago
Normal profit is the return to the entrepreneur when economic profits are zero. determined by subtracting implicit costs from to
diamong [38]

Normal profit is the return to the entrepreneur when the entire economic profits are equal to zero. Hence, the correct statement is Option A.

<h3>When the business earns normal profits?</h3>

A commercial enterprise may be in a state of normal profit while its economic income is equal to 0, that is why normal profit is also called “zero economic profit.” Normal profit takes place on the factor wherein all sources are being successfully used and could not be put to better use elsewhere.

Hence, Normal profit is the return to the entrepreneur when the entire economic profits are equal to zero. The correct statement is Option A.

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5 0
1 year ago
Your brother, who is prone to bearing substantial risk, suggests that you buy a security for $10,000 that promises to pay you $1
astraxan [27]

Answer:

16.59%

Explanation:

First we look at the formula which to determine the future value of the security and then work back to determine the annual return in terms of percentage

Future Value = Present Value x (1 +i)∧n

where i = the annual rate of return

n= number of years or period

We then plug the given figures into the equation as follows

we already know Present value to be $10,000 and the future value to be $100,000 and the number of years to be 15

Therefore, the implied annual return or yield on the investment is

100,000 = 10,000 x (1+i)∧15

(1+i)∧15 = 100,000/10,000 = 10

1 + i = (10∧(1/15))=1.165914

i= 1.165914-1

= 0.1659

= 16.59%

5 0
3 years ago
During the month of June, Telecom Inc. had cost of goods manufactured of $112,000, direct materials cost of $52,000, direct labo
olchik [2.2K]

Answer:

Beginning work in process= $7000

Explanation:

Giving the following information:

Cost of goods manufactured by $112,000.

Direct materials cost of $52,000

Direct labor cost of $37,000.

Overhead cost of $26,000.

The work in process balance at June 30 equaled $10,000

Work in process on June 1?

Cost of goods sold= Beginning work in process + direct material + direct labor + manufacturing overhead - ending work in process

112000= ? + 52000 + 37000 + 26000 - 10000

Beginning work in process= 112000 - 52000 - 37000 - 26000 + 10000= $7000

7 0
3 years ago
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