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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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Answer:

economic profit  = $11225

Explanation:

given data

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cost = $30 per unit

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implicit costs = $3,400

solution

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and total cost = 975 × 15  = $14625

so here Total profit will be as

Total profit = $29250 - $14625  = $14625

so here economic profit will be

economic profit  = Total profit  - implicit costs

economic profit  = $14625 -  $3,400

economic profit  = $11225

6 0
3 years ago
1. Consider an economy with a population of 100,000 households. 60 percent of households reportan annual income of $25,000 ("low
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Answer:

The total income earned by households in this economy is:

$4,700,000,000

Explanation:

a) Data and Calculations:

Household population = 100,000

Low earners = 60% with annual income of $25,000 each

Mid earners = 30% with annual income of $70,000 each

High earners = 10% with annual income of $110,000 each

60% of the population = 60,000 (100,000 * 60%) households

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10% of the population = 10,000 (100,000 * 10%)  households

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2 years ago
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Answer:

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2 years ago
John invested $12,000 in the stock of Hyper Cyber. Eight years later, Hyper Cyber's shares reached $125,000, but John held onto
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Answer:

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By considering the given information, the cost that is correct is a sunk cost for $12,000

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It is a useless cost and it can be avoided also.  

It is that cost that is not considered at the time of decisions making.

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5 0
3 years ago
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Compton Company expects the following total sales: Month Sales March $ 37,000 April $ 27,000 May $ 21,000 June $ 32,000 The comp
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Answer:

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