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shusha [124]
3 years ago
12

Au Sable Corporation reported taxable income of $800,000 in 20X3 and paid federal income taxes of $272,000. Not included in the

computation was a disallowed penalty of $25,000, life insurance proceeds of $100,000, and a Federal income tax refund from 20X2 of $50,000. Au Sable is an accrual basis taxpayer. The corporation's current earnings and profits for 20X3 would be:
Business
1 answer:
podryga [215]3 years ago
7 0

Answer:

The corporation's current earnings and profits for 20X3 would be $603,000

Explanation:

The computation of the current earnings and profits are shown below:

= Taxable income - federal income taxes - disallowed penalty + insurance proceeds

= $800,000 - $272,000 - $25,000 + $100,000

= $603,000

The federal income tax refund would not be considered in the computation part. Hence, it is ignored.

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Given the following information and assuming beginning inventory was zero and a periodic inventory system was used, what is the
aivan3 [116]

Answer:

A.  $650 $750 $677

Explanation:

period                 purchases                            sales

1                        20 units at $50                15 units at $60

2                       35 units at $40                35 units at $45

3                       85 units at $30                85 units at $35

total revenue = $900 + $1,575 + $2,975 = $5,450

COGS:

  • using FIFO = (15 x $50) + (5 x $50) + (30 x $40) + (5 x $40) + (80 x $30) = $4,800
  • using LIFO = (15 x $50) + (35 x $40) + (85 x $30) = $4,700
  • cost average = ($4,950 / 140 units) x 135 units = $4,773.21

Gross profit:

  • using LIFO = $5,450 - $4,800 = $650
  • using FIFO = $5,450 - $4,700 = $750
  • using cost average = $5,450 - $4,773.21 = $676.79 ≈ $677
4 0
3 years ago
58:46
Lesechka [4]

Answer:

Excellent

Explanation:

6 0
3 years ago
Quarter-inch stainless-steel bolts, 1.5 inches long are consumed in a factory at a fairly steady rate of 50 per week. The bolts
natta225 [31]

Answer:

a.

EOQ = 2,944 units

b.

Setup cost = Numbers of Order x Ordering cost = $8.83

Holding Cost = $8.83

Explanation:

a.

Economic order quantity is the quantity at which business incur minimum cost. This is the level of order where the holding cost equals to the ordering cost of the business.

As per given data

Annual Demand = 50 per week x 52 weeks in a year = 2,600 bolts

Ordering cost = $10

Carrying cost = $0.03 x 20% = $0.006

EOQ =  \sqrt{\frac{2 X S X D}{H} }

EOQ = \sqrt{\frac{2 X 10 X 2,600}{0.006} }

EOQ = 2,943.92 = 2,944 units

b.

Setup cost = Numbers of Order x Ordering cost = (2,600 / 2,944) x $10 = $8.83

Holding Cost = (2,944 / 2) x $0.006 = $8.83

6 0
3 years ago
In economics, rational decisions occur when
labwork [276]

Answer:

rational decisions occur when the marginal benefits of an action equal or exceed the marginal costs. Deciding by thinking at the margin is just like making any other decision. A rational decision occurs when the marginal benefits of an action equal or exceed the marginal cost.

Explanation:

4 0
3 years ago
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Gossip occurs when Jen and Kathy talk about _______.
Assoli18 [71]
Gossip occurs when Jen and Kathy talk about their coworker Ted.
6 0
3 years ago
Read 2 more answers
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