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scoray [572]
3 years ago
5

A reconciliation of pretax financial statement income to taxable income is shown below for Shaw-Anderson Industries for the year

ended December 31, 2018, its first year of operations. The company offers quality-assurance warranties that extend six months after goods are purchased. The income tax rate is 40%.
Pretax accounting income (income statement) $ 640,000
Interest revenue on municipal securities (20,000 )
Warranty expense in excess of deductible amount 45,000
Depreciation in excess of financial statement amount (120,000 )
Taxable income (tax return) $ 545,000

What amount should Shaw-Anderson report as the current portion of income tax expense on its 2018 income statement?

a.$52,000
b.$218,000
c.$248,000
d.$256,000
Business
1 answer:
Luba_88 [7]3 years ago
3 0

Answer:

B

Explanation:

Year end - December 31,2018 (first account year)

Pretax Income - $640,000

Interest expenses ( $20,000)

Excess warranty expense add back $45,000

Excess depreciation deducted ($120,000)

Taxable income = $545,000

Tax rate = 40%

Income tax expense for 2018 = $545,000 * 40%

=$218,000

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$2,400,000

Explanation:

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The $4,000,000 gross profit should be distributed as follows:

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7 0
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3 years ago
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The answer is: a startling statistic.

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When you use a starling statistic or a startling statement, you will probably grab your audience´s complete attention right away. They are excellent starting points for a presentation.

One of the best examples is Chris Anderson starting a presentation with:

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Ace Leasing acquires equipment and leases it to customers under long-term sales-type leases. Ace earns interest under these arra
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Answer:

The lease payment will be for $ 113,751.173  during 5 years beginning at the moment the lease is signed

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time        5 years

rate        0.06

\frac{150000}{(1 + 0.06)^{5} } = PV  

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Now we subtract form the 620,000 to know the amount to be perceived form the lease payment:

620,000 - 112,089 = 507.911‬

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PV \div \frac{1-(1+r)^{-time} }{rate} (1+r)= C\\

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rate 0.06

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3 0
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Answer:

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3 0
3 years ago
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