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JulsSmile [24]
3 years ago
14

In the previous year, a firm failed to record premium amortization of $40,800 and $28,300, respectively, on its bonds payable an

d held to maturity bond investments. These errors affect both income before tax and taxable income. The firm's tax rate is 30%. As a result of this error, net income was:
Business
1 answer:
Snowcat [4.5K]3 years ago
4 0

Answer:

The correct answer is $8,750 ( Understated).

Explanation:

According to the scenario, the computation of the given data are as follows:

we can calculate the net income by using following formula:

Net income = Understated gain - Tax amount

Where, Understated gain = $40,800 - $28,300 = $12,500

So, Tax on $12,500 = $12,500 × 30% = $3,750

By putting the value, we get

Net income = $12,500 - $3,750

= $8,750 ( Understated)

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On January 1, the first day of its fiscal year, Pretender Company issued $12,700,000 of five-year, 11% bonds to finance its oper
yarga [219]

Answer:

1) Debit Bank $11787069 Debit bond discount $912931 ; Credit Bond $12700000

2) Debit Interest expense $751293 ; Credit Bank $660,000 Credit Discount on Bond payable $91293

3 )Debit interest expense $ 751293 ; Credit bank 660000, Credit discount on bond payable $91293

b)Interest expense = $1502586

c)It is because a financial crisis might have happened prior to issuing the bond and the company still went ahead with issuing even though the rate has changed.

Explanation:

interest expense = 12000000 * 0.11 * 6/12=$660000

discount on bond payable = $912931 /5 = 182586 /2= 91293

Interest expense = $751293 * 2 = $1502586

7 0
2 years ago
Dividing up the market by how much a consumer uses a product or service is called?
just olya [345]

Answer:

benefit segmentation (behavioral segmentation) dividing the market into segments according to the different benefits that consumers seek from the product.

Explanation:

6 0
2 years ago
Compared to a country with an MPS of 0.05, a country with an MPS of 0.2 would have to change government expenditures by ________
const2013 [10]

Answer: Four times.

Explanation:

Based on the information given, the government expenditure multiplier in this case goes thus:

K = ∆Y/∆G = 1/1-MPC = 1/MPS

For the first country with a MPS of 0.05, K = 1/MPS = 1/0.05 = 20

For the first country with a MPS of 0.2, K = 1/MPS = 1/0.2 = 5

Therefore, 20/5 = 4.

Therefore, the answer is four times.

8 0
3 years ago
_________ is the elapsed time from receipt of a customer order to when the completed goods are shipped to the customer.
Leno4ka [110]

The period of time between receiving a client order and shipping the finished items to the customer is referred to as the delivery cycle time.

When it comes to measuring internal business performance, delivery cycle time is regarded as a very crucial statistic. It is defined as the period of time between the moment an order is received and the time it is actually sent.

This usually plays a significant role for both organizations and customers because prompt order processing is a skill that almost all firms and customers tend to value.

In a similar vein, it can be seen that quicker delivery cycles can also serve as a possible competitive advantage for the business and, in most situations, are essential to their existence.

To know more about delivery cycle time.

brainly.com/question/24321175

#SPJ4

4 0
1 year ago
In 2010, the imaginary nation of Bovina had a population of 5,000 and real GDP of 600,000. In 2011 it had a population of 5,200
Evgesh-ka [11]

Answer:

Option (b) is correct.

Explanation:

In 2010,

Real GDP = 600,000

Population = 5,000

Real GDP per person:

= Real GDP ÷ Population

= 600,000 ÷ 5,000

= 120

In 2011,

Real GDP = 636,480

Population = 5,200

Real GDP per person:

= Real GDP ÷ Population

= 636,480 ÷ 5,200

= 122.4

Growth rate of real GDP per person during the year 2011:

= [(Real GDP per person in 2011 - Real GDP per person in 2010) ÷ Real GDP per person in 2010] × 100

= [(122.4 - 120) ÷ 120] × 100

= (2.4 ÷ 120) × 100

= 0.02 × 100

= 2%

It was seen from the data available on the world bank that the United states real GDP per person is growing at an average rate of 2% between 1910 and 2010.

Hence, the Growth rate of real GDP per person during the year 2011 is about the same as average U.S. growth over the last one-hundred years.

6 0
3 years ago
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