Bedford had this info at the end of 2015, its first year of operations: No other permanent or temporary differences exist. The l
itigation item will be paid in 2018. The depreciation will reverse evenly over the next three years. Tax rate is 30%. Future net income is probable. The 12/31/15 Income Tax Payable is:
1 answer:
Answer: $150,000
Explanation:
Seeing as the litigation expense will only be paid in 2018, it should be added back to income for 2015.
= 900,000 + 100,000
= $1,000,000
As the depreciation will reverse evenly over the next three years and with future income probable, it should be removed from income.;
= 1,000,000 - 300,000
= $700,000
Municipal Bonds have the advantage of being Tax-exempt so their interest income should be removed to calculate how much tax should be paid.
= 700,000 - 200,000
= $500,000
2015 Income Tax Payable = 500,000 * 30%
= $150,000
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The essential rule that makers utilize to figure out what blend of work and capital conveys yield at the least expense is cost minimization. Cost minimization is the primary guiding principle that producers use to determine which combination of labor and capital produces the most output at the lowest cost.
a) Because the total cost less the variable cost, the fixed cost is $300.
At a result of nothing, the main expenses are fixed expenses.
B) The change in total cost for each additional output unit is equal to marginal cost. Additionally, it is equivalent to the variation in variable cost for each additional output unit. As the quantity changes, the fixed cost does not change, so total cost equals the sum of variable cost and fixed cost. As a result, the increase in variable cost is proportional to the increase in total cost as quantity increases.
<h3>What is the formula for reducing costs?</h3>The marginal product of capital is equal to the marginal product of labor divided by the rental price of capital in the cost minimization formula.
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