Answer:
Lets shape the question so it makes some sense.
<em>Warranty costs amounting $500,000 were recorded in 2018 Income statement. However, the warranty tax deduction is not allowed until payment occurs in future years. Disscuss accouting implication</em>
See detail answer below.
Explanation:
As per tax laws warranty provision is not allowed as deductible expense only warranty cost incured/paid during the year is allowed deduction when computing taxable income.
So the company shall recoginze defferd tax asset for this expense in current year. Following entries will be made by the company for financial accounting purpose.
Deffered Tax Asset Debit $125000
Deffered Tax Income $125000
(Assuming applicable tax rates is 25%)
The next year when the warranty claim will be incured/paid the company will reverse the above entry and can claim tax deduction against this waranty cost paid but not on provision basis.
Answer:
In France:
Farmer can produce = 10 metric tons of grain or 5 metric tons of dates in a season
In Mali:
Farmer can produce = 10 metric tons of grain or 25 metric tons of dates.
(1) Mali has the absolute advantage in producing dates because Mali produces more metric tons of dates than France from the same level resources.
(2) No country has an absolute advantage in producing grain because same amount of grain were produced by both the countries with the same level of resources.
(3) Opportunity cost of dates in France =
= 2 grain
Opportunity cost of dates in Mali =
= 0.4 grain
Therefore, Mali's opportunity cost of producing dates is lower than France, so Mali has a comparative advantage in producing dates.
(4) Opportunity cost of grain in France =
= 0.5 dates
Opportunity cost of grain in Mali =
= 2.5 dates
Therefore, France's opportunity cost of producing grains is lower than Mali, so France has a comparative advantage in producing grains.
Answer:
Option A. The cost structure of the ad campaign
Explanation:
The reason is that the currency exchange rate effects the transactions of money from home to foreign or foreign country to home country. So the option with money transaction is option A.
The rest of the options are planning and are things that are not associated with the foreign transactions. So the remainder options are not the one which will be effected by the currency exchange rate.
Answer:
Total unitary manufacturing cost= $32
Explanation:
Giving the following information:
Direct materials $ 13
Direct labor $ 5
Variable manufacturing overhead $5
Fixed manufacturing overhead per year $90,000
Units produced= 10,000 units.
<u>The absorption costing method includes all costs related to production, both fixed and variable. </u>The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
Unitary fixed overhead= 90,000/10,000= $9
Total unitary manufacturing cost= 13 + 5 + 5 + 9
Total unitary manufacturing cost= $32
Answer:
0.368
Explanation:
Price of B(0,13) = 1 / (1 + interest rate)^years
Price of B(0,13) = 1 / (1 + 8%)^13
Price of B(0,13) = 1 / (1+0.08)^13
Price of B(0,13) = 1 / (1.08)^13
Price of B(0,13) = 1 / 2.7196237
Price of B(0,13) = 0.3676979247
Price of B(0,13) = 0.368