1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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)

You might be interested in
Which of the following best describes the consideration on the part of an insurer?
ehidna [41]

Answer:

B) The promise to pay in the event of a covered claim

Explanation:

The promise to pay in the happening of a covered claim apparently describes the promise to pay in the process of covered claim. In insurance matter of contracts, the insurer assures to pay for covered losses which the insured suffers and the insured promises to do what the contract says and pay the premium. Most non insurance contracts are fluctuating contracts. The amount of attention given by both parties are almost equivalent.

4 0
3 years ago
Cranium, Inc., purchases term papers from an overseas supplier under a continuous review system. The average demand for a popula
kykrilka [37]

Answer:

B) greater than $30 but less than $40

  • the actual result is $39

Explanation:

the options are missing:

A) less than or equal to $30

B) greater than $30 but less than $40

C) greater than $40 but less than $50

D) greater than $50

we must first calculate safety stock = (Z-score x √lead time x standard deviation of demand) + (Z-score x standard deviation of lead time x average demand)

  • Z-score for 98% confidence level = 2.326
  • standard deviation of demand = 30
  • √lead time = √5 = 2.23607
  • we are not given any standard deviation of lead time, so we can assume that it is 0

safety stock = (2.326 x √2.23607 x 30) + (2.326 x 0 x 300) = 156.03 ≈ 156 units

the annual holding cost of 156 units = 156 x $0.25 = $39

4 0
3 years ago
Question 7 Which combination of factors would result in the lowest monthly mortgage payment? A Big down payment, a longer term l
Sauron [17]
<span>A combination of a big down payment, a longer term loan, and a lower interest rate is expected to result into a low monthly mortgage payment.</span><span />
3 0
3 years ago
What is meant by trading on the equity? (b) how would you determine the profitability of trading on the equity? chegg.
aleksklad [387]

Answer:

Trading on equity defines the increase in profit earned by the equity shareholders due to presense to financial charges.

When a company is higher the rate of interest on borrowed funds.so company should option for trading on equity.

Explanation:

<em>h</em><em>o</em><em>p</em><em>e</em><em> </em><em>i</em><em>t</em><em> </em><em>h</em><em>e</em><em>l</em><em>p</em><em>s</em><em> </em><em>u</em><em /><em />

4 0
2 years ago
Why do you think setting goals can influence an employee's safety-related actions in the workplace?
Montano1993 [528]

Answer:

Setting goals helps with knowing what to focus on and what to do at work

This helps the employee do better at work because they know exactly what they are going for

Explanation:

Just write a bunch of things about the things I said above like try to go into more detail about them I tried helping but I don’t think I can write 200 words worth of explanation on here

3 0
3 years ago
Read 2 more answers
Other questions:
  • Which job is categorized as professional and would most likely earn a salary?
    5·2 answers
  • Katie Inc. reported net income of $171,000 for the current year and paid dividends of $26,000 on common stock. It also has 10,00
    13·1 answer
  • Duck, an accrual basis corporation, sponsored a rock concert on December 29, 2018. Gross receipts were $300,000. The following e
    13·1 answer
  • Suppose you read a news article reporting that your local government has denied a request by an entrepreneur to build a new coff
    10·1 answer
  • Information related to Kerber Co. is presented below.1. On April 5, purchased merchandise from Wilkes Company for $23,000, terms
    13·1 answer
  • Process A has fixed costs of $1000 and variable costs of $5 per unit. Process B has fixed costs of $500 and variable costs of $1
    6·1 answer
  • Write two or three career goals for yourself. Remember to use the guidelines for writing goals. Also, state how you will review
    11·2 answers
  • Can anyone give me some tips on how to become a successful businesswoman
    6·1 answer
  • Given the general agreement that pollution is undesirable and social welfare is increased by reducing pollution, the optimal lev
    13·1 answer
  • Ben and Miranda recently sold some land they owned for $150,000. They received the land and a check equal to the amount of the t
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!