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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

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The current market price of a share of Disney stock is $60. If a call option on this stock has a strike price of $65, the call c
erastovalidia [21]

Answer:

Is out of the money

Explanation:

A strike price is a particular price which if activated, derivative contracts can be sold or bought. Derivatives are considered as products in finance where underlying assets are major determinants of their value.

The stock price is considered as the current price that a share of stocks is sold and bought on the market.

Because the strike price is $65 and the stock price (market price) is $60, Disney is out of money and cannot be exercised profitably.

7 0
3 years ago
A company's unadjusted trial balance shows a debit balance in the allowance for doubtful accounts. This means that a. The compan
ELEN [110]

Answer:

d. Both a and b above are correct.

Explanation:

In the case when the company unadjusted trial balance reflect a debit balance of allowance for doubtful debts so this represent that the company would have more written off account receivable that would be shown in the beginning balance of the allowance. Also the company should record the bad debt expense as more as the debit balance of the non-adjusted allowance  

Hence, the last option is correct

3 0
2 years ago
THIS IS FOR U.S. GOVERNMENT
aliina [53]
The answer is B . because i said so .
3 0
2 years ago
While Davidson outlines several issues that the parties are actually not terribly divided on, he also outlines two issues that a
ziro4ka [17]

A. only volume (cm³) is the independent variable

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6 0
2 years ago
Alpha Computing is a U.S. company that specializes in IT research. It has formed a joint venture with Microchips Inc., a Belgium
lianna [129]

Answer:

The correct answer is option A,strategic alliance

Explanation:

Strategic alliance it is a form of partnership where businesses avail one another strategic resources in the areas of supply chain management,production,marketing,distribution,technological advancement and know-how for the joint benefits and advantage of all partners.

In this case,Alpha as the leader in laptop designing  is combining resources with another technological giant Microchips Inc. in order that they may complement each other's efforts.The synergy impact of such arrangement is enormous as each partner concentrates on what he knows best.

8 0
3 years ago
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