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Troyanec [42]
3 years ago
14

A consumer electronics company was formed to develop cell phones that run on or are recharged by fuel cells. The company purchas

ed a warehouse and converted it into a manufacturing plant for $6,000,000. It completed installation of assembly equipment worth $1,500,000 on December 31. The plant began operation on January 1. The company had a gross income of $8,500,000 for the calendar year. Manufacturing costs and all operating expenses, excluding the capital expenditures, were $2,280,000. The depreciation expenses for capital expenditures amounted to $456,000. a) Compute the taxable income of this company. b) How much will the company pay in federal income taxes for the year?
Business
1 answer:
rodikova [14]3 years ago
8 0

Answer:

a) $5, 764,000

b) $1, 959,000

Explanation:

The first part of the question is to determine the taxable income of the company

The taxable income - The company's gross income - The Capital Expenditures - The Depreciation expenses for capital expenditure

= $8,500,000 - $2,280,000 - $456,000

= $5,764,000

Part B) This is to determine the Federal Income Taxes for the year

Looking at the income tax distribution tab, we first check where the company falls into

Since, the company has a taxable income of $5,764,000, it falls in the category of

$335,000 to $10,000,000= $113,900 + 34% of the amount over $335,000

As such, the Federal Income Tax

= $113,900 + ($5,764,000- $335,000) x 34%

= $113,900 + $1, 845,000

= $1, 959,000

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A factory machine was purchased for $393000 on January 1, 2018. It was estimated that it would have a $74000 salvage value at th
sweet [91]

Answer:

Annual depreciation= $41,470

Explanation:

Giving the following information:

Purchasing price= $393,000

Salvage value= $74,000

The machine would be run 30000 hours in the 5 years. The company ran the machine for 3900 actual hours in 2018.

To calculate the depreciation expense using the units of activity method, we need to use the following formula on each year:

Annual depreciation= [(original cost - salvage value)/useful life of production in hours]*hours operated

Annual depreciation= [(393,000 - 74,000)/30,000]*3,900

Annual depreciation= $41,470

5 0
3 years ago
Perion Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direc
Yuliya22 [10]

Answer:

$4,280 under applied

Explanation:

Given that;

Estimated direct labor hours = 11,200

Estimated manufacturing overhead = $259,840

Estimated rate per hour = $259,840 ÷ 11,200 = $23.2

Actual labor hours = 10,800

Estimated overhead for actual hours

= 10,800 × $23.2

= $250,560

Actual overheads incurred = $254,840

Hence, actual overheads are under absorbed by

= $254,840 - $250,560

= $4,280

4 0
2 years ago
While gambling at Prairie Meadows Casino, Troy Blackford became angry and smashed a slot machine. He was banned from the premise
ra1l [238]

Answer:

There is no contract, he has been banned for life

Explanation:

Troy and the casino had no contract. Troy black Ford had no business going back to gamble in the casino because he had already been banned for life for destroying a slot machine. So except this ban had been lifted by prairie meadows, there was no way he could argue that he had a contract and then win the case. Prairie meadows made him no offers so as a result there could be no contract.

3 0
3 years ago
Suppose that you purchase a 182-day Treasury bill for $9,850 that is worth $10,000 when it matures. The security's annualized yi
Ivahew [28]

Answer:

Annual interest rate= 3%

Explanation:

Giving the following information:

Present value= $9,850

Future value= $10,000

Number of days= 182

<u>First, we need to calculate the daily interest rate. We will use a financial calculator (the formula is incredibly difficult to use):</u>

<u></u>

Function= CMPD

n= 182

I%= SOLVE = 0.0083

PV= 9,850

FV= -10,000

<u>Now, the annual interest rate:</u>

Annual interest rate= 0.0083*365= 3.02 = 3%

3 0
3 years ago
________ is an internationally recognized "missing child" safety program in the united states (and canada), originally created b
Paha777 [63]

Answer:

"Code Adam"

Explanation:

Based on the information provided within the question it can be said that the safety program being described is called "Code Adam". Like mentioned in the question this is a safety program activated when there is a missing child within the United States or Canada. This code was named after Adam Walsh, who was an kid from Florida who was abducted and killed from a Sears outlet store on July 27, 1981.

5 0
3 years ago
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