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yan [13]
3 years ago
6

Grand River Corporation reported pretax book income of $700,000. Included in the computation were favorable temporary difference

s of $200,000, unfavorable temporary differences of $170,000, and favorable permanent differences of $200,000. The corporation's current income tax expense or benefit would be:
Business
1 answer:
Oliga [24]3 years ago
6 0

Answer:

The income subject to tax is 470,000

Income tax expense     105,000 debit

      Income tax payable         98,700 credit

      Income tax liability             6,300 credit

<u>DISCLAMER:</u>

We aren't given any tax-rate thus we calculate based on the 2020 tax for corporation which is 21%

Explanation:

The permanent difference will be ignored as they are permanent will not produce tax liability or tax assets in the future.

favorable temporary difference     200,000

unfavorable temporary difference (170,000)

net  favorable temporary difference 30,000

In the current period, the company will pay for a tax-base 30,000 less

but, in the future this difference will settle this, I will create a tax-liability

30,000 x 21% = 6,300

income subject to income tax:

book income                700,000

permanent difference (200,000)

accounting taxable income 500,000

temporary difference <u>   (30,000)</u>

Taxable Income            470,000

Income tax expense: 470,000 x 21% = 98,700

income tax expense: 500,000 x 21% = 105,000

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3 years ago
Which statement is strongly a sustainable future to alleviate the risks posed by today's production and consumption patterns?
Crank

Answer: OPTION D

Explanation: Sustainable development means consuming natural resources in such a way that the needs of today gets fulfilled without hindering the needs of future generations .

A. Consuming more capital today will result in more depletion of natural resources that are limited in amount thus there would be no sustainable development.

B. This case study relates to sustainable development which depends on limited natural resources thus society does not have the option to invest it .

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3 years ago
Type the correct answer in the box. Spell all words correctly. What factor reflects the ‘cost of money’? The ‘cost of money’ is
Serga [27]

1) Production Opportunities

2) Time Preferences for Consumption

3) Risk

4) Inflation

Explanation:

These are the factor reflects the ‘cost of money. The cost of the borrowing is the rate of interest paid by the lender to the creditor by the supply and demand of the assets.

1) Production Opportunities  : Investment Opportunities to produce competitive (cash) assets.

2) Time Preferences for Consumption  : Present market choice rather than potential demand savings.

3) Risk  : The probability of a small or unfavourable return on an investment.

4) Inflation  : The price will growing over time.

6 0
3 years ago
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Read 2 more answers
A firm has the following accounts and financial data for 2007:
Oksi-84 [34.3K]

Answer:

The correct answer is $302.40.

Explanation:

According to the scenario, the computation can be done as:

To calculate firms' earning first we less cost of goods and total operating expenses from sales revenue:

= $3,060 - $1,800 - 600

= $660

Now we deduct the interest expense, then

= $660 - $126

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Now we deduct tax rate, then

= $534 × $213.60    ( $534× 40%)

= $320.40

Now we finally deduct the dividends to get the firm's earning to common shareholder's, then

= $320.40 - 18

= $302.40

Hence, the firm's earning to common shareholder's is $302.40.

5 0
3 years ago
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