Bartering is an exchange of goods where money is not involved
Answer:
The forced sale is also accounted as disposal and any net gain or loss is reported in income statement. The accounting enteries are given below.
April 1, 2020.
Debit Cash Asset $ 447,200
Debit accumulated depreciation $ 166,400
Credit Land Asset $ 62,400
Credit Building Asset $ 291,200
Credit Profit on Disposal $ 260,000
August 1, 2020
Debit Land Asset $ 93,600
Debit Building Asset $ 416,000
Credit Cash Asset $ 509,600
Answer:
A loss of 69%
Explanation:
Price per share $100
Equity invested $10,000
Funds taken from broker $10,000 at an Interest rate 9.00%
Total investment $20,000
Price change 30.00% less
Margin required 30.00%
Total shares purchased from investing = 200 shares
The shares decrease in value by 30%: $20,000 * 0.30 = $6,000.
You pay interest of = $10,000 * 0.09 = $900.
The rate of return will be:
"$6,000 － $900" /"$10,000" = - 0.69 = - 69%
Answer:
b. companies can use accounting methods that minimize net income for tax purposes and other methods that maximize net income for reporting to shareholders.
As they use a basis for accounting and prepare the financial statement temporary difference arise which, are settled overtime as in the end both, tax basis and accounting basis much get the same income
The most common example is depreciation if a company uses S179 and depreciate the entire of the asset purchase next year, while the accounting will have a depreciation expense associate with the equipment for tax purposes this assets basis is zero as it was completely depreciate thus, it will have a higher income making more tax payable than accounting income tax expense.
Explanation:
a. corporations often make errors in their tax estimations.
While this can occur is not the reason for deferred income taxes
c. the IRS owes a company a refund from last year.
No, the refund will not generate deferrd income tax It will be a receivable for the company.
d. large corporations generally have operations in foreign countries whose tax law is quite different from U.S. tax
While corporations do operate in foreing countries these doesn't necessary generate deferred taxes. Difference arise when the company uses a different method in his accounting than the State to determinate the tax basis.
The managers are taking a utilitarian approach to organizational decisions.
<h3>What is the Utilitarian Approach?</h3>
This is known to be a kind of assessment of an action that is said to be based on the effect or the consequences or outcomes.
An example is the net benefits and costs to all stakeholders on a personal level. It aim to get the greatest good for the highest or best number while making the least amount of harm.
Learn more about utilitarian approach from
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