Answer:
$242,800
Explanation:
Tax Base Accounting Base Temporary Difference
2021 Insurance Expense $234,000 0 $234,000
This insurance expense will result in taxable temporary difference=$234,000*20%=$46,800
The journal entry will be;
Income Tax Expense Dr.$46,800
Deferred Tax liability Cr.$46,800
Therefore Income tax expense will be=$196,000+$46,800=$242,800
Answer:
d. Unlike monopolies and monopolistically competitive markets, oligopolies prices do not exceed their marginal revenues.
Explanation:
An oligopoly can be defined as a market formation where in a given sector of the economy there are only a small number of competing companies offering a product or service. Its structure is formed by imperfect competition (between monopoly and perfect competition).
The difference between monopoly and oligopoly is that the number of companies that the market has will set the price of products in an oligopoly market, whereas in the monopoly only one company dominates the market and therefore that company determines the price of the good, as it is a market without competition. Therefore, alternative D is the incorrect one.
Answer:
1. What is the net working capital for the above company?
Net Working Capital will be 45
2. If the company pays back all of its accounts payable today using cash, what will its net working capital be (in million of USDs)?
Net Working Capital will be 45
3. If the company buys new property, plant and equipment today using its entire cash balance, what will its net working capital be (in million of USDs)?
Net Working Capital will be -1
Explanation:
1.
Net Working Capital = Total Current Asset - Total Current Liabilities
Net Working Capital = 89 - 44 = 45
2.
Current Asset after payment = 89 - 39 = 50
Current Liabilities after payment = 44 - 39 = 5
Net Working Capital = Total Current Asset - Total Current Liabilities
Net Working Capital = 50 - 5 = 45
3.
Current Asset after Purchase = 89 - 46 = 43
Current Liabilities after Purchase = 44 - 0 = 44
Net Working Capital = 43 - 44 = -1
Answer. D) The signing bonus of $26,000 payable after one year of employment.
Explanation: Because it is more advantageous on him and also he has the time to payback within a year. He will be at rest to use fund for something that can fetch more money even within the 12 months period.
