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Mice21 [21]
3 years ago
11

Klapper Company claimed a tax deduction which was uncertain when it was deducted in 2018 but is relatively certain of receiving

the deduction over a five-year period. Which of the following is not correct in accounting for the uncertain tax item?
a. A contingency reserve will be set up at the same amount as the deferred tax asset if the firm is certain it may claim 100% of the deduction over time.
b. Income tax expense in the first year is the current portion of income tax expense minus the increase in the deferred tax asset.
c. The contingency reserve is reduced each year with the offset to the deferred tax account.
d. As the company will ultimately get 100% of the deduction, no contingency reserve is required.
Business
1 answer:
sammy [17]3 years ago
5 0

Answer: d. As the company will ultimately get 100% of the deduction, no contingency reserve is required.

Explanation:

Just because the company will eventually get 100% of the deduction does not mean that no contingency reserve is required.

A contingency reserve needs to be created that is the same amount as the deferred tax asset which arises from the claimed deduction and deducted from every year to offset the deduction for that particular year until the 5 years have elapsed.

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"when you buy a piece of equipment for a company, what is the impact on the three financial statements?"
Dvinal [7]

There are three main financial statements that can be affected by buying a piece of equipment for a company.

They are: (1) balance sheets; (2) income statements; and  (3) cash flow statements

Balance sheets show what a company owns and what it owes at a fixed point in time so buying a piece of equipment will show an increase in the  company’s assets and decrease in cash  Income statements which shows how much money a company made and spent over a period of time will report an increase in the expenses resulting to a lower net income.  

Cash flow statements which show a decrease in net cash due to buying of the equipment.

5 0
4 years ago
Father Christmas is a retail store that sells a unique Santa made from fur, wool, and tapestry. Of 150 customers wish to buy a S
Fantom [35]

Answer:

80%

Explanation:

Calculation for the service level

Using this formula

Service level=Sales/Numbers of customers

Let plug in the formula

Service level=120/150

Service level=0.8*100

Service level=80%

Therefore the service level will be 80%

6 0
4 years ago
Department C had direct materials EUP cost of $4.00 and conversion EUP cost of $2.50. If the department had 38,000 units complet
Vanyuwa [196]

Answer:

cost of units completed for Direct material =$152,000

Explanation:

given data

direct materials EUP cost = $4.00

Number of units  = 38,000

conversion EUP cost = $2.50

solution

we get here cost of units completed for Direct material that is express as

cost of units completed for Direct material = direct materials EUP cost × Number of units    .................1

put here value and we will get

cost of units completed for Direct material =  $4 × 38,000

cost of units completed for Direct material =$152,000

5 0
4 years ago
A key element of the scientific management philosophy is
Maksim231197 [3]
I would say that a key element in the scientific management, taking from experience in mining is that to have a successful project outcome, all the variables and their quantities and qualities must be taken into account including materials, equipment, personnel, experience, safety and past record such as in evaluating a drill contractor and also their rates for the drilling for labour and equipment. 
4 0
3 years ago
You’ve been asking students to watch short videos for homework instead of reading the textbook. Students seem to be prepared for
patriot [66]

Answer:

The correct answer is the option B: include the video on a slide deck.

Explanation:

To begin with, in the situation where the teacher is trying to encourage the use of the virtual tools instead of the old textbook so therefore the students can do their homework in a way that is more interactive and dynamic then in order to know if they are doing it the teacher should include the video on a slide deck so in that way when they see the video they will have some comprehensive questions to answer and bring to the classroom or to think about and later ask them, so in that way the teacher would be able to know is they are watching or not the videos.

7 0
3 years ago
Read 2 more answers
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