Answer:
$400,000
Explanation:
Since at December 31, Year 5, Tedd's tax advisor believed that an unfavorable outcome was <u>probable</u>. And a <u>reasonable estimate </u>of additional taxes was $400,000 but could be as much as $600,000.
Although after the Year 5 financial statements were issued, Tedd received and accepted an IRS settlement offer of $450,000.
Tedd should have included an amount of $400,000 as accrued liability in its December 31, Year 5 balance sheet
The reason is that according to the International Financial Reporting Standards, a PROVISION must be made as long as the conditions below were obtainable at year end.
- Existing Condition (which in this case is the tax dispute with the IRS)
- Probable Cash Outflow (which Tedd's Tax adviser confirmed)
- Reliable Estimate of Outflow ( which the scenario stated ''A reasonable estimate of additional taxes was $400,000'')
Hence, such 'reasonable estimate is the appropriate amount for inclusion in the financial statements.
Answer:
Option (d) is correct.
Explanation:
Given that,
Inventory sold to Alberta, Inc. on account = $5,800
Cost of goods sold = $4,000
The journal entries are as follows:
(i) On October 1,
Accounts receivable A/c Dr. $5,800
To sales A/c $5,800
(To record the credit sale of inventory)
(ii) On October 1,
Cost of goods sold A/c Dr. $4,000
To Merchandise inventory A/c $4,000
(To record the cost of goods sold)
Answer:
TarHeel's accounting effective tax rate is 19.95%
Explanation:
The effective tax rate is the hypothetical tax rate adjusted for the tax cost or benefit from permanent difference.
the dividend received deduction reduces the Effective tax rate
= 50,000*21%
= 10,500/1,000,000
= 1.05%.
Effecttive tax rate is 21% - 1.05% = 19.95%
Therefore, TarHeel's accounting effective tax rate is 19.95%
Answer:
$100,890
Explanation:
To determine the value of the debt we must calculate the present value of the note:
present value = future value of the note / (1 + interest rate)⁵
present value = $170,000 / (1 + 11%)⁵ = $170,000 / 1.11⁵ = $170,000 / 1.685
present value = $100,890
Answer:
Could you please be specific with your question?
Explanation: