Answer:
A. = (15% X $2M) + (21% X $2M) = $720,000. Since there is no mechanism for mitigating double taxation, the branch profit will be taxed on the to tax rate of 15% and 21% which is $300,000 and $420,000.
B. The total tax for $2m branch profit if US corporations can remove foreign based profit from US taxation will be just the 15% x $2m = $300,000.
C.If they are allowed to take deductions for foreign income taxes, the total tax on the $2m branch profit will be (21% -15%) x $2m = $120,000.
Explanation:
D.1. If credit are allowed for foreign income tax paid, total tax will be ($2m - $300,000 been foreign tax paid) x 21% = $357,000
D.2.
If the charge foreign income taxes at 30% and US corporations can claim refundable credit for foreign income tax paid on foreign source income = ($2m - $300,000 been the foreign income tax paid) = $1 700,000 x 30% = $510,000
Answer:
Reflected in current and future years' financial statements, not in prior statements.
Explanation:
A change in accounting estimate can be defined as a necessary adjustment of the book value or carrying value (cost of an asset in the balance sheet minus its depreciation) of an asset, which usually arises as a result of the assessment of its current status, expected benefits in a future date and obligations with respect to the assets.
Hence, a change in an accounting estimate is reflected in current and future years' financial statements, not in prior statements. This simply means that, a change in accounting estimate should be accounted for prospectively by the accountants; this is in accordance with the International Accounting Standards Board (IASB), International Financial Reporting Standards (IFRS) and the Generally Accepted Accounting Principles (GAAP).
Also, note that a change in an accounting estimate is not necessarily a correction of errors, rather it arises as a result of change in information or a new development regarding the asset or liability. Examples of informations that are being changed in an accounting estimate are; depreciation, warranty liability, bad-debt allowance etc.
<em>Additionally, a change in an accounting estimate does not require the accountant or financial expert stating the previous financial statement. </em>
The answer is D> hope this helps
Answer:
Unit Level activity occurs each time a service is provided or product is produced.
Batch Level activity occurs when a complete lot or set is produced which involves similar activities. Some products require individual and collective manufacturing to have finished products. For example shoes are made with the same material and manufactured in the same way.so the whole lot is produced in a batch.
Explanation:
Assembling Products is an activity which requires unit level activity as each unit is assembled separately. For examples each car is assembled separately so it is a unit level.
Issuing raw materials is a batch level as material are issued in bulk for many processes together.
3) Machine set up is a batch level because the whole machine carries out a number of activities .
4) Inspection is a unit level. Each product is inspected separately and carefully.
5) Loading and Labeling machine is also a batch level has as it has many individual (parts) products that are finished together through different processes.
6) Equipment Maintenance is also a batch as it requires maintenance of many parts together.
7) Printing a banner is a unit level as banner is separate and one for the whole process. Printing have direct correlation to the number produced.
8) Moving material: is also batch level as it has many runs or cycles of material handling.
9) Ordering a part is also a batch level as it is produced in batches rather than a whole finished unit.
