Answer:
Consider the following explanation
Explanation:
Foreign tax credit allowable is the minimum of Federal Income Tax and Income tax paid in foreign country. Here, Jimenez had paid 40% (2,000,000/5,000,000) income tax in foreign country. So. Jimenez will only be eligible to take foreign tax credit of 1,050,000 i.e. 5,000,000 * 21% and there will be carryover of $950,000 (2,000,000 - 1,050,000) foreign taxes.
There is carryover tax when we cannot use the whole amount of foreign tax credit in the current year and the balance foreign tax is carried over to future years.
Full time employees are allowed a vacation they earned at the rate of one day per month at anytime, with a request submitted at least three business days minimum before the vacation period. failure to submit within the this time frame might cause denial of the vacation.
Answer:
A. The amount of fixed overhead deferred in inventories is $60,000
Explanation:
Unit product cost
Year 1 Year 2
Direct materials $12 $12
Direct labor $5 $5
Variable manufacturing
overhead $5 $5
Fixed overhead
$48 $36
($432,000 ÷ 9,000) ($432,000 ÷ 12,000)
unit product cost $70 $58
Fixed overhead deferred (1,000 × $48) $48,000
Fixed overhead released -$48000
Fixed overhead deferred (3000 × $36) $108,000
Net $48,000 $60,000
The amount of fixed overhead deferred in inventories is $60,000
<u>Solution and Explanation:</u>
The implicit cost of capital
Implicit cost of capital is the opportunity cost of capital which is already incurred but not reported as a separate cost/expense, Implicit cost is the cost which results from using an existing asset instead of selling or renting it.
For example when a businessman uses his/her existing land which has implicit cost of say $1000 per month but bought it for say $100 many years ago, so $1000 is its implicit cost/current market rent per month which is equal to its oppo
Answer:
a) H0: u = presence of a unit root
HA: u ≠ presence of a unit root ( i.e. stationary series )
b) t stat = -0.064
c) We will reject the Null hypothesis and the next step will be to accept the alternative hypothesis
d) It is not valid to compare the estimated t stat with the corresponding critical value because a random walk is non-stationary while the difference is stationary because it is white noise
Explanation:
<u>a) stating the null and alternative hypothesis</u>
H0: u = presence of a unit root
HA: u ≠ presence of a unit root ( i.e. stationary series )
<u>b) performing the test </u>
critical value = -2.88
T stat = coefficient / std error
= -0.02 / 0.31 = -0.064
c) From the test, the value of T stat > critical value we will reject the Null hypothesis hence the next step will be to accept the alternative hypothesis
d) It is not valid to compare the estimated t stat with the corresponding critical value because a random walk is non-stationary while the difference is stationary because it is white noise
