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TEA [102]
3 years ago
5

Maker Co. discovered that in the prior year it incorrectly calculated depreciation expense and reported $75,000 in depreciation

expense instead of the correct depreciation expense of $50,000. The tax rate for the current year was 35%. What was the impact of the error on Maker’s financial statements for the prior period? Multiple Choice Understatement of depreciation expense of $25,000. Overstatement of net income of $16,250. Understatement of accumulated depreciation of $25,000. Overstatement of accumulated depreciation of $25,000.
Business
1 answer:
WARRIOR [948]3 years ago
7 0

Answer:

The correct answer is D.

Explanation:

Giving the following information:

Maker Co. discovered that in the prior year it incorrectly calculated depreciation expense and reported $75,000 in depreciation expense instead of the correct depreciation expense of $50,000. The tax rate for the current year was 35%.

We need to calculate two different impacts:

Accumulated depreciation= actual depreciation - original depreciation

Accumulated depreciation= 50,000 - 75,000= 25,000 overstated

Now, the effect on income:

Savings in tax= 25,000*0.35= $8,750

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Even though most corporate bonds in the united states make coupon payments semiannually, bonds issued elsewhere often have annua
scZoUnD [109]

Answer:

Bond Price​=  816.29

Explanation:

Giving the following information:

YTM= 0.075

Coupon= 0.058*1,000= 58

Years to maturity= 23 years

Face value= 1,000

<u>To calculate the price of the bond, we need to use the following formula:</u>

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price​= 58*{[1 - (1.075^-23)] / 0.075} + [1,000/(1.075^23)]

Bond Price​= 626.79 + 189.5

Bond Price​=  816.29

4 0
2 years ago
Which of the following is considered a cause of inflation?
inn [45]

Inflation means- A general increase in prices and fall in the purchasing value of money.

So if you think about the question and the definition, what answer involves the money going down and or up significantly?

The answer would be,

B, Producers raise prices to meet HIGHER cost.

          Hope this helps :)

8 0
3 years ago
Producers of Ocean Spray cranberry products decided to make Craisins (and dried cranberry snack food) available in convenience s
mylen [45]
I don’t know what your saying I’m confused I’m sorry
3 0
3 years ago
Is it possible for a country with a regressive tax system to have a tax-spending system that transfers resources from the rich t
lara31 [8.8K]

Answer:A

Explanation:

A regressive tax is a tax impose in such a manner that the tax rate decreases as the amount subject to taxation increases.

5 0
3 years ago
The difference between a budget and a standard is that:_________.
8090 [49]

Answer:

The answer is A. Standards refer to a company's projected revenues, costs, or expenses

Explanation:

The explanation is the following:

A budget refers to a department's or a company's projected revenues, costs, or expenses, while on the other hand A standard usually refers to a projected amount per unit of product, per unit of input (such as direct materials, factory overhead), or per unit of output.

Standard costing is intensive in appli­cation as it calls for detailed analysis of variances.

In standard costing, variances are usu­ally revealed through accounts.

Standard costs represent realistic yardsticks and are, therefore, more useful for controlling and reducing costs.

8 0
3 years ago
Read 2 more answers
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