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disa [49]
2 years ago
12

Earnings per share is a financial ratio that is used to measure

Business
1 answer:
exis [7]2 years ago
5 0

Answer:

-the profitability of a company

Explanation:

The profit is the final value created for a company after paying all their costs, expenses and taxes. The earnings per share show the quantity of money that a company makes per each common stock. This means the profit of a share.

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Increases. hope this helps
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3 years ago
Income from installment sales of properties included in pretax accounting income in 2021 exceeded that reported for tax purposes
nadya68 [22]

Answer:

1. Taxable income = $76 million

2.  Net income = $65.25 million

3-a. Net current Deferred Tax Asset = $1.95 million

3-b. Net current Deferred Tax Liability = $6.25 million

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf file for the complete question.

The explanation of the answers I now provided as follows:

1. Determine the amounts necessary to record income taxes for 2021, and prepare the appropriate journal entry.

1-a. Note: See the attached excel file for the determination of the amounts necessary to record income taxes for 2021 and the taxable income.

From the attached excel file, we have:

Taxable income = $76 million

1-b. The journal entries will look as follows:

<u>Details                                                       Debit ($'m)             Credit ($'m)     </u>

Tax expense (6.75 + 19 - 3)                           22.75

Deferred tax asset (25% * (1 + 13 - 2))             3.00

Deferred tax liability (25% * (7 + 20))                                              6.75

Tax payable (25% * 76)                                                                   19.00

<u><em>(To record tax expense.)                                                                                 </em></u>

2. What is the 2021 net income?

This can be determined as follows:

Net income = Pretax accounting income - Tax expense = $88 million - $ 22.75 million = $65.25 million

3. Show how any deferred tax amounts should be classified and reported in the 2021 balance sheet.

3-a. The deferred tax amounts should be classified as follows.

From installment receivable in point (a) in the question:

Current deferred tax liability in 2022 (25%* ($4  / 2)) = $1

Noncurrent deferred tax liability in 2023 (25%* ($4 / 2)) = $1

From the depreciation in point (c.) in the question:

Noncurrent deferred tax liability (25%* ((24 + 24) - (14 + 7))) = $6.75

From the Warranty Expense/Payable in point (d.) of the question:

Current deferred tax asset (40%* 3) = $1.20

From the Acrrued Expense/Payable in point (e.) of the question:

Current deferred tax asset (25%* 7) = $1.75

Noncurrent deferred tax liability (25% * $6) = $1.50

3-b. These will be reported reported in the 2021 balance sheet as follows:

Sherrod, Inc.,

Balance Sheet (Partial)

As the Year Ended 31 December, 2021

<u>Details                                                                         $'Million    </u>

<u>Assets:</u>

Current Deferred Tax Asset (1.20 + 1.75)                      2.95

Current Deferred Tax Liability                                     <u> -1.00  </u>

Net current Deferred Tax Asset                                <u>   1.95  </u>

<u>Liabilities:</u>

Noncurrent Deferred Tax Asset (A)                              1.50

Noncurrent Deferred Tax Liabiity (1.0 + 6.75) (B)      <u>   7.75  </u>

Net current Deferred Tax Liability (C = B - A)       <u>    6.25   </u>

Download xlsx
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> xlsx </span>
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> pdf </span>
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2 years ago
Financial literacy is the set of skills and knowledge needed to make informed decisions about __________. A. career matters B. m
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Answer: B. Money matters

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Which of the following would likely be covered under homeowners insurance but NOT by renter's insurance? AA fire destroys almost
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