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saveliy_v [14]
3 years ago
13

A company can choose to use FIFO inventory costing methods for the financial statement and can elect to use either LIFO or FIFO

on the tax return, however if you use LIFO for books then you must use LIFO on the tax return
A. True.
B. False.
Business
1 answer:
Oduvanchick [21]3 years ago
8 0

Answer:

A. True.

Explanation:

Companies can and often do use different costing methods for financial reporting and tax reporting. The only exception is when LIFO is used for tax reporting; in this case the IRS requires that it also be used in financial statements.

LIFO assigns the highest amount to cost of goods sold - yielding the lowest gross profits and net income , which also yields a temporary tax advantage by postponing payment of some income tax.

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Which of the following is not a measure of the reliability of the supply chain?
Pachacha [2.7K]

Answer:

Option B, Supply chain response time

Explanation:

The reliability of the supply chain represents the amount of good performance of the distribution chain. The highest priorities for supply chain practitioners are rising trust, decreased inventory and market readiness.

The overall response time for the supply chain is the capacity of the supply chain to react to market demand rapidly. When a market demand transition is observed, the supply chain has to stabilise.  

The response time of the supply chains is sometimes characterised by minimal changes in market demand.

Examples of operations in the supply chain involve processing, manufacturing, architecture, development, shipping and transportation.

6 0
3 years ago
What must a landlord or homeowner post that informs workers that the homeowner is not responsible for the work being performed?
Phantasy [73]

Answer:

A notice of cessation

Explanation:

A notice of cessation is a written notice that is issued by the contractee or the owner of a project (or his or her agent) to inform concerned parties that no work has been performed at the project site for a certain period. This notice also sets the time frame within which the affected parties may carry out their lien rights against one another

5 0
3 years ago
Kohler Corporation reports the following components of stockholders’ equity at December 31, 2018. Common stock—$20 par value, 10
gogolik [260]

Answer:

1. See the attached excel file for the journal entries.

2. Ending balance of retained earning is $346,125

3.Total Stockholder's Equity is $1,616,125

Explanation:

1. Prepare journal entries to record each of these transactions.

Note: See the attached excel file for the journal entries.

The following are tge workings:

w.1: Treasury stock = $5,000 * $20 = $10,000

w.2: Dividend payable = (Issued and outstanding shares - Shares repurchase) * Dividend per share = (60,000 - 5,000) * $4 = 55,000 * $4 = $220,000

w.3: Cash = Number of shares sold * Selling price per share = 1,875 * $24 = $45,000

w.4 = Treasury stock = Number of shares sold * Treasury price per share = 1,875 * $20 = $37,500

w.5: Additional paid in capital = Number of shares sold * (Selling price per share - Treasury price per share) = 1,875 * ($24 - $20) = $7,500

w.6: Cash = Number of shares sold * Selling price per share = 3,125 * $17 = $53,125

w.7 = Treasury stock = Number of shares sold * Treasury price per share = 3,125 * $20 = $62,500

w.8: Balancing figure = Treasury stock (w.7) – Cash (w.7) - Additional paid in capital (w.5) = $62,500 - $53,125 - $7,500 = $1,875

w.9: Dividend payable = (Issued and outstanding shares * Dividend per share = 60,000 * $4 = $240,000

2. Prepare a statement of retained earnings for the year ended December 31, 2019.

Kohler Corporation

Statement of Retained Earnings

On December 31, 2019

<u>Particulars                                                  Amount ($)  </u>

Opening balance                                       400,000

Income for the year                                    408,000  

Dividend Paid (220,000 + 240,000)        (460,000)

Loss on sale of treasury stock               <u>        (1,875)    </u>

Ending balance                                     <u>      346,125   </u>

3. Prepare the stockholders’ equity section of the company’s balance sheet as of December 31, 2019.

Kohler Corporation

Stockholder Equity Section of Balance sheet

At December 31, 2019

<u>Particulars                                                        Amount ($)</u>

Common stock issued ($20 * 60,000)               1,200,000

Paid-in capital in excess of par v - c. stock     <u>        70,000  </u>

Total contributed Capital                                     1,270,000

Retained Earnings                                      <u>      346,125  </u>

Total Stockholder's Equity                             <u>     1,616,125  </u>

Download xlsx
3 0
3 years ago
If the expected sales volume for the current period is 7,000 units, the desired ending inventory is 400 units, and the beginning
Ksivusya [100]

Answer:

7,000 units

Explanation:

Calculation for the number of units set forth in the production budget, representing total production for the current period

Using this formula

Number of units =Current period +Ending inventory - Beginning inventory

Where,

Current period =7,000 units

Ending inventory=400 units

Beginning inventory =400 units

Let make plug in the formula above

Number of units =7,000 units + 400 units-400 units

Number of units =7,000 units

Therefore the Number of units will be 7,000 units

5 0
3 years ago
Nick and Beth run a catering business in which they have two major tasks: getting new clients and preparing food for events and
Burka [1]

Answer:

NICK

NICK

2

Explanation:

A company has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries

Nick prepares food in 8 hours while Beth produces the food in 12 hours. ick thus has an absolute advantage in food preparation because he produces food in less time

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.

Opportunity cost of Nick in food preparation = 4/8 = 0.5 hours

Opportunity cost of Beth in food preparation = 3 / 12 = 0.25 hours

Nick has a comparative advantage in food preparation

3 0
3 years ago
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