1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Helen [10]
3 years ago
8

The accountant at Coronado Company is figuring out the difference in income taxes the company will pay depending on the choice o

f either FIFO or LIFO as an inventory costing method. The tax rate is 35% and the FIFO method will result in income before taxes of $8600. The LIFO method will result in income before taxes of $7300. What is the difference in tax that would be paid between the two methods?
Business
1 answer:
Anna11 [10]3 years ago
7 0

Answer:

The difference in tax to be paid between the two methods is $455

Explanation:

In this question, we are asked to calculate the difference in tax for the LIFO and FIFO method.

The matter of importance here is that the tax rate is 35%. We proceed as follows:

For the FIFO income, the tax rate is 35% of 8,600 = 35/100 * 8600 = $3010

For the LIFO method, the tax rate is 35% of $7,300 = 35/100 * 7,300 = $2,555

The difference in tax that would be paid between the two methods is 3010-2555 = $455

You might be interested in
At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales $ 914,000 Credit sales 31
Lyrx [107]

Answer:

a.

Date       Account Title                                                      Debit              Credit

Dec, 31   Bad debt expense                                          $15,700

              Allowance for doubtful expense account                            $15,700

<u>Working</u>

= 5% * 314,000

= $15,700

b.

Date       Account Title                                                      Debit              Credit

Dec, 31   Bad debt expense                                          $‭36,840‬

              Allowance for doubtful expense account                            $‭36,840‬

<u>Working </u>

= 3% * (Cash sales + Credit sales)

= 3% * (914,000 + 314,000)

= $‭36,840‬

c.

Date       Account Title                                                      Debit              Credit

Dec, 31   Bad debt expense                                          $‭‭17,520

              Allowance for doubtful expense account                            $‭‭17,520

<u>Working</u>

= (8% * Year end accounts receivable) + Debit balance for Allowance for doubtful account

= (8% * 139,000) + 6,400

= $‭17,520‬

8 0
2 years ago
An investor buys a $10,000 par, 4.25 percent annual coupon TIPS security with three years to maturity. If inflation every six mo
NeX [460]

Answer:

D. $11,843.37

Explanation:

principal \times (1+\alpha)^6 \times (1+r_n)

We will adjust by inflation the principal, and then calculate the interest.

Inflation is 0.025 every six month, and it is compounding interest.

Our rate will be for six month as well. Because TIPs pay interest semianually as well.

principal \times (1+0.025)^6 \times (1+0.0425/2)

11,843.36903

3 0
3 years ago
If you've been a victim of identity theft, what should you do after contacting the company that reported the suspicious charge a
bulgar [2K]
You should B. order a credit report.
hope this helps!
3 0
3 years ago
What courses or information would be helpful for a hospitality manager?
choli [55]

Answer:

Travel Attendants.

Lodging Managers.

Meeting, Convention, and Event Planners.

Food Service Managers.

Holiday Counselor.

Explanation:

4 0
3 years ago
In a negotiation, to allow for concessions, the expectations expressed in the seller team's opening position should be:
ser-zykov [4K]

In a negotiation, to allow for concessions, the expectations expressed in the seller team's opening position should be higher than its target position

Option B

<u>Explanation: </u>

Negotiation is a political dialogue that addresses a problem in a way acceptable to both sides. That group tries in a discussion to convince the other to adhere to its views. Both parties involved tend not to argue, rather seek to find some kind of agreement by mediation.

Talks require others, so that one side is always in the forefront of the talks. Nevertheless, even when the concession is marginal, the other should surrender.

Negotiation parties can differ. These may include negotiations between purchasers or even between the government of several or more nations, employers and future employees.

6 0
3 years ago
Other questions:
  • International Imports (I2) pays an annual dividend rate of 10.20% on its preferred stock that currently returns 13.67% and has a
    10·1 answer
  • Which of the following is NOT a good tip for driving at night? A . Beware of drowsiness B. Keep your eyes locked on the road ahe
    12·2 answers
  • Res ipsa loquitur means that the burden of proof A. shifts to the defendant. B. proves the negligence. C. falls on the plaintiff
    11·2 answers
  • Blue Water Boats is considering a new project with perpetual cash inflows of $435,000, cash costs of $310,000, and a tax rate of
    6·1 answer
  • Bradford company budgeted 4,000 pounds of material costing $5.00 per pound to produce 2,000 units. the company actually used 4,5
    10·1 answer
  • Walmart's customers have come to expect to find P&amp;G products in stores, and P&amp;G depends on Walmart to purchase a good po
    8·1 answer
  • The trading securities portfolio of Jerome, Inc., had a total cost of $3,000 and
    15·1 answer
  • Is it better to create a product that benefits society or create a product that consumers want?
    5·1 answer
  • What was ronald reagan’s basic belief about economic growth? he thought greater government involvement in business would fix the
    8·2 answers
  • internalizing a positive externality will cause the demand curve to a. shift to the right. b. shift to the left. c. become more
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!