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Ira Lisetskai [31]
3 years ago
10

At the end of 2013, its first year of operations, Slater Company reported a book value for its dependable assets of $40,000 for

financial reporting purposes and $33,000 for income tax purposes.
Slater earned taxable income of $97,000 during 2013.

The company is subject to a 30% income tax rate and no change has been enacted for future years.

The depreciation was the only temporary difference between taxable income and pretax financial income.

Required:

1. Prepare Slater's income tax journal entry at the end of 2013.

2. Show how the deferred taxes would be reported on Slater's December 31, 2013, balance sheet.
Business
1 answer:
Irina-Kira [14]3 years ago
5 0

<u>Solution and Explanation:</u>

SC's Depreciable assets for the purpose of financial reporting and income taxes were $40000 and $33000 respectively. Its taxable income is$97000.Temporary difference will be there because of Depreciation.

Temporary Difference=Financial reporting Dep-Income tax depreciation

=40000 minus 33000

=7000

Pretax financial income=taxable income+Temporary Difference  

=97000+7000=$104000

Deferred tax liability=7000 multiply 30%=2100

Income tax expense=104000 multiply 30%=31200

Income tax payable=97000 multiply 30%=29100

Dec 31 Income Tax ExpensenA/C Dr. $31200

                     To Income Tax Payable A/C $ 29100

                       To Deferred Tax Liability A/C $ 2100

<u> Answer:b </u>

Slatter Company

Partial Balance Sheet

December 31, 2013

Noncurrent Liabilities

Deferred Tax Liability $2100

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Based on the scenario, the gestalt principle that best accounts for this phenomenon of which Caleb can still read the announcement despite of the fact that the letters are not completely formed is because of the gestalt principle of closure. This law explains of how an individual could see incomplete objects because of how perception fills the visual gap of an individual.

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https://www.investopedia.com/ask/answers/050415/how-are-industrial-goods-different-consumer-goods.asp

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Laval produces lamps and home lighting fixtures. Its most popular product is a brushed aluminum desk lamp. This lamp is made fro
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<u>Answer:</u>

<u>Determine the plantwide overhead rate for Laval using direct labor hours as a base. </u>  

1. Estimated overhead costs  $800,000  $1.60  per direct labor hour

Estimated direct labor hours  500,000  

2. <u>Determine the total manufacturing cost per unit for the aluminum desk lamp using the plantwide overhead rate. </u>

Direct Labor - Assembly  $188,500

Direct Labor - Fabricating  395,200

Direct materials  270,000

Overhead  34,720

Total manufacturing costs  888,420

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Manufacturing cost per unit  40.38

3.  <u>Compute departmental overhead rates based on machine hours in the fabricating department and direct labor hours in the assembly department. </u>

                    Departmental overhead rate  

Fabricating  390000/152000 = 2.57  MH

Assembly  410000/290000 = 1.41  DLH  

4.  <u>Use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps.   </u>  

Direct materials                                                         270000  

Direct labor    

Fabricating                                   188500  

Assembly                                   395200  

                                                                                 583700

                                                                                       0

Overhead    

Fabricating (15000*2.57)               38550  

Assembly (15200*1.41)                        21432  

                                                                                       59982

                                                                                            0

Total manufacturing cost                                                  913682

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The basic formula for the price elasticity of demand is.
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3 0
1 year ago
Monty Corporation owns machinery that cost $26,400 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $
Genrish500 [490]

Answer:

a

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Accumulated Depreciation  $2,112 (credit)

b.

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Machinery at Cost $26,400 (credit)

Profit and loss $660 (credit)

Explanation:

a.

2021 Depreciation Expense calculation

Depreciation Expense = $3,168 × 8 /12

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Therefore total accumulated depreciation will be :

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b.

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  1. Derecognize the cost of asset
  2. Derecognize the accumulated depreciation of the asset
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  4. Recognize the profit or loss on the sale of the asset.

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