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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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Answer:

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3 years ago
Tom​ girard, director of retail​ operations, indicates that he is able to keep​ "hands-on" with the​ staff, and he is always awa
romanna [79]

Based on the scenario above, it is suggested that Girard practices the management by walking around. The MBWA or the management by walking around is a style where the management uses this with their managers wandering in the workplaces to check their employees.

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3 years ago
Hewlett-packard is currently exploring new products and markets through the development of digital imaging products in its plant
postnew [5]
The answer is; hewlett-packard can establish creative work environments across all of its plants around the world.
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6 0
3 years ago
During the period, Sanchez Company sold some excess equipment at a loss. The following information was collected from the compan
Mice21 [21]

Answer:

Part 1

Cost of Equipment Sold = $9300

Accumulated Depreciation of Equipment Sold = $ 1100

Cash received from Sale = $5300

Part 2

<em>Net Cash Flows from Operating Activities</em>

Add Back (Positive) to Operating Profit for the year : Loss on sale of equipment $ 2900

Part 3

<em>Net Cash flows from Investing Activities</em>

Add (Positive) Proceeds from Sale of Equipment $ 5300

Explanation:

Part 1

<em>Cost of Equipment Sold:</em>

The figure is obtained from Equipment At Cost Account.

Open the Account as follows:

Beginning Balance $ 20300 (debit), Ending Equipment $ 11000, Balancing figure $ 9300 (20300-11000) is the cost of equipment sold.

<em>Accumulated Depreciation of Equipment Sold</em>

The figure is obtained from Accumulated Depreciation.

Open the Account as follows:

Beginning Balance $ 1980 (credit), Profit and loss - Depreciation $ 870 (credit), Ending Balance $ 1750 (debit), Balancing figure $ 1100 (1980+870-1750) is the Accumulated Depreciation on Equipment Sold

<em>Cash Received on Sale</em>

This figure is figure is obtained from Equipment Disposal Account.

Open the Account as follows:

Cost of Equipment Sold $ 9300 (debit), Accumulated depreciation on equipment sold $1100(credit),Loss on Sale of Equipment $2900(credit),the Balancing figure $5300 (9300-1100-2900)

Part 2

Loss on sale of Equipment is the only Income Statement Item affecting the Operating Activity of the Cash Flow Statement.

Add back to Operating profit since this is a non-cash item and was initially deducted in the calculation of Operating Profit.

Part 3

Sale of Equipment results in Cash Inflow and affects the Cash Flows from Investing Activities Section of Cash Flow Statement.

Hence a positive amount should be added to reflect this inflow.

4 0
3 years ago
Last year, a women's professional organization made two small-business loans totaling $23,000 to young women beginning their own
Fittoniya [83]

Answer:

a. Loan amount at 9%=5,000

b. Loan amount at 11%=$18,000

Explanation:

To determine the amount of each loan amount, first we need to derive the following equations;

a.

<em>Step 1: Determine loan amount at 9%</em>

Total Interest=Interest from 9%+interest from 11%

where;

Total interest=$2,430

Interest from 9%=principal amount at 9%×interest rate×number of years

Interest from 11%=principal amount at 11%×interest rate×number of years

and;

Principal amount at 9%=x, interest rate=9/100=0.09, number of years=1

Principal amount at 11%=23,000-x, interest rate=11/100=0.11, number of years=1

replacing;

2,430=(x×0.09×1)+0.11(23,000-x)

2,430=0.09 x+2,530-0.11 x

(0.11 x-0.09 x)=2,530-2,430

0.02 x=100

x=100/0.02

x=5,000

Loan amount at 9%=5,000

b.

<em>Step 2: Determine loan amount at 11%</em>

Use the expression below to determine the loan amount at 11%;

Loan amount at 11%=Total loan amount-loan amount at 9%

where;

Loan amount at 11%=unknown, to be determined

Total loan amount=$23,000

Loan amount at 9%=$5,000

replacing;

Loan amount at 11%=23,000-5,000=$18,000

Loan amount at 11%=$18,000

3 0
3 years ago
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