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NISA [10]
3 years ago
8

Scott Corp. received cash of $20,000 that was included in revenues in its Year 1 financial statements, of which $12,000 will not

be taxable until Year 2. Scott’s enacted tax rate is 30% for Year 1, and 25% for Year 2. What amount should Scott report in its Year 1 balance sheet for deferred income tax liability?
Business
1 answer:
Oliga [24]3 years ago
6 0

Answer:

3,000

Explanation:

As the income will be taxed at 25% the income tax liability will be for that amount

12,000 x 25% = 3,000

The tax deferred liability is generated from a temporary difference. The company is paying less income tax today but will pay more in the future. Hence there is a liability.

The accounting reason for this treatment is to match expenses with the time they occur or the revenues which generated.

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A customer invests $100,000 in a real estate limited partnership. In the first year of operations, the investor is allocated $20
nata0808 [166]

Answer:

-$130,000

Explanation:

The computation of the net loss deducted from his return is shown below:

= Income - interest deductions - operating expenses - depreciation expenses

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3 0
3 years ago
Boersma Sales , Inc., a merchandising company, reported sales of 7100 units in September at a selling price of $682 per unit. Co
Doss [256]

Answer:

$2,122,900

Explanation:

Calculation to determine what The Gross margin for September was

First step is to determine the variable costs

Variable costs= (317 * 7,100) + (44*7,100) + (22*7,100)

Variable costs= 2,250,700 + 312,400 + 156,200

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Using this formula

GM=Sales-VC

Let plug in the formula

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Therefore The gross margin for September was:$2,122,900

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My neighbor, martha, ran into my house crying and angry. "my car has been stolen!" she gasped. "i saw them take it!" i called th
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