Answer:Total income tax Liability = $72000
Explanation:
The question did not provide us with requirements. however after assessing the information provided in the question we can assume that the question requires us to calculate the income tax liability for the year 2019.
Differed tax arises as a result of temporary differences in the tax laws and accounting policies from example accounting strictly uses accrual system while most Receiver of tax revenue organisations in different countries they use a combination of Cash system and Accrual system.
Excess of Tax Depreciation = $40000
When tax depreciation is higher than Book Value Depreciation the Tax Base (cost - accumulated tax depreciation) will be lower that the Book value (cost - accumulated depreciation). Tax Base will be Lower by $40000 which indicates a Differed tax Liability.
Differed Tax Liability = $40 000 x 20% = $8000
Income received In advance
Income received in advance creates a Tax liability for the Wenger Corporation because Receiver of Tax revenue uses Cash system with regards to transactions of this nature.
Differed Tax Liability = $20000 x 20% = $4000
Income Tax = 300 000 x 20% = $60 000
Total income tax Liability = 60 000 + 8000 + 4000 = $72000
Answer:
He should ask nieghbors to stop
Explanation:
Because asking nice is not a bad reason
Answer:
202%
Explanation:
Calculation to determine what the company's overhead application rate is
First step is to calculate the Total manufacturing overhead using this formula
Total manufacturing overhead = Overhead rate - Direct material cost - Direct labor cost
Let plug in the formula
Total manufacturing overhead =5220 - 2,200 - 1000
Total manufacturing overhead =2020
Now let determine the overhead application rate using this formula
Overhead application rate=Total manufacturing overhead/Direct labor cost
Let plug in the formula
Overhead application rate=2020/1000*100
Overhead application rate=202%
Therefore, the company's overhead application rate is:202%