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Leni [432]
3 years ago
9

Makoto Corp. prepared the following reconciliation of income per books with income per tax return for the year ended December 31

, 2021: Book income before income taxes 2,700,000 Add temporary difference Installment revenue which will reverse in 2022 240,000 Deduct temporary difference Depreciation expense which will reverse in equal amounts in each of the next four years (960,000) Taxable income 1,980,000 Makoto's effective income tax rate is 25% for 2021. What amount should Makoto report in its 2021 income statement as the current provision for income tax expense?
Business
1 answer:
QveST [7]3 years ago
8 0

Answer:

Income tax expense 567,000 debit

   income tax liability            151,200 credit

   income tax payable         415,800 credit

Explanation:

Income before taxes:                2,700,000

unfavorale temporary difference 240,000

favorable temporary difference   960,000

taxable income                           1,980,000

income tax payable : 1,980,000 x 21% =  415,800

income tax expense: 2,700,000 x 21% = 567,000

960,000 - 240,000 = 720,000 net

as we are paying fewer taxes now, we are going to pay more in the future.

Therefore, we have a tax liaiblity:

720,000 x 21 = 151,200

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Ions:
kicyunya [14]

Answer: The answers are provided below.

Question:

Here is the complete question:

Marian, a top graduate from Loyola in Humanities, was hired by a major corporation into a management position. Marian finished the corporation's management training program top in her group, and is performing above the norm in her position. She is really enjoying her work.

As a woman she feels isolated, as there are no other women managers and few women in her area. One night at a company party she heard a conversation between two of her male co-workers and their supervisor. They were complaining to him about Marian's lack of qualifications and her unpleasant personality. They cursed affirmative action regulations for making the hiring of Marian necessary.

Marian is very upset and wants to quit.

Questions:

a. Should Marian quit?

b.Are her co-workers correct in their evaluation?

c. Should Marian confront the co-workers?

d. Should Marian file a discrimination suit?

e. Should Marian go to the supervisor?

f. What else could Marian do?

Explanation:

a. No, Marian does not have to quit her job but should rather face the situation. She came top in her group during the management training and she deserves to stay in her position and continue to perform well. She is doing well at her role and the opinion of others does not matter.

b. No, Marian co-workers are not correct with regards to their evaluation. She has sufficient and good qualifications which was the reason she got the job and she is also performing well. Also, Marian does not have an unpleasant personality but rather feels isolated because she is the only woman. Her colleagues should help her out in order to deal with the situation.

c. Yes, Marian should go and confront her co-workers. The co-workers have a wrong image of Marain in their minds and she should speak to them and clear the issues. This will help her to be more social with her male colleagues are also build a better working relationship.

d. No, Marian should not file a discrimination suit. The comments made by her co-workers were not discriminatory but rather she was misunderstood at work due to her reserved personality. She should relate better with her colleagues, be social and also build a bond with her colleagues.

e. Marian should go to her supervisor only when she was not successful when she confronted her colleague. She should confront her co-workers first and if that doesn't work, she can then go to her supervisor.

f. Marian should become social and be more friendly with her colleagues. She should talk and relate with her male colleagues. She can discuss work related issues with them and sometimes offer a helping hand. This would help build a bond.

8 0
3 years ago
Houston Houston Office Equipment manufactures and sells metal shelving. It began operations on January​ 1,2014.
Vanyuwa [196]

Solution:

1) If 2 pounds of direct materials are used to make one unit of finished product, then 115,000 units × 2 lbs, or 230,000 lbs were used at $0.65 per lb of direct materials i.e. ($149,500 ÷ 230,000 lbs.).

The Formula for calculating Ending Direct Material Cost =  [Ending Direct Material Inventory * Cost per lb]

Therefore, Ending Direct Materials cost is 1,900 lbs. * $0.65 = $1,235.

2) Manufacturing Costs for 115,000 units  

   Variable Fixed Total

   Direct materials costs – $149,500  + Direct manufacturing labor costs – 31,500  + Plant energy costs – 3,000  + Indirect manufacturing labor costs

 

   (Variable + Fixed) i.e. 15,000+12,000 - 27,000  + Other indirect manufacturing costs

 

   (Variable + Fixed) i.e. 10,000+32,000 - 42,000

    So, Cost of goods manufactured - $253,000

Average unit manufacturing cost = $253,000 ÷ 115,000 units

                                                       = $2.20 per unit

Finished Goods Inventory at Dec. 31, 2014 = $15,400

Therefore Finished goods inventory total units = $15400 / $2.20

                                                                                = 7,000 units

3) Units sold in 2014 = Beginning inventory + Production – Ending inventory

                                   = 0 + 115,000 –7,000

                                 = 108,000 units

Therefore, Selling price in 2014 = Total Revenues / Units Sold

                                                      = $583,200 ÷ 108,000

                                                      = $5.40 per unit

4) Operating Income for 2014

            Revenues(108,000 units sold × $5.40) = $583,200

           Cost of units sold:

            Beginning finished goods, Jan. 1, 2014 = $0

            Cost of goods manufactured = $253,000

           Cost of goods available for sale = $253,000

           Ending finished goods, Dec. 31, 2014 = $15,400

           So, Cost of Units sold ($253000 - $15400) = $237,600

Therefore, Gross margin = Total Revenue - Cost of Units Sold

                                          = $583,200 - $237,600

                                         = $345,600

Operating costs:  Marketing, distribution, and customer-service costs

Variable + Fixed i.e. ($126,000 + $48,000) = $174,000

Administrative costs = $57000

Total Operating Costs = $231,000

Therefore Operating income for 2014 = $345600 - $231,000

                                                                = $114600

3 0
3 years ago
for each of the following goods that are imported in the united states, identify which of the three sources of comparative advan
olya-2409 [2.1K]

For each of the following goods that are imported in the United States, abundant input is the only source of comparative advantages that accounts for that country's comparative advantage. Therefore, the option A holds true.

<h3>What is the significance of a comparative advantage?</h3>

A comparative advantage can be referred to or considered as a situation in which a producer has an economic advantage over the other in a number of economic activities. At least two economies need to be a part of the society for the occurrence of a comparative advantage.

Abundant inputs is one of the key sources of comparative advantage. It is considered as a source that can account for another country's comparative advantage, when it lets the United States import its goods.

Therefore, the significance regarding comparative advantage has been aforementioned.

Learn more about comparative advantage here:

brainly.com/question/13221821

#SPJ4

7 0
1 year ago
Milo Millworks Incorporated has maintained a sustainable competitive advantage for its framing style. In order to accomplish thi
photoshop1234 [79]

In order to accomplish this, the framing style must be difficult to substitute for.

<h3>What is Competitive advantage?</h3>

Competitive advantage can be defined as the way in which a company produce or manufacture more goods or product and sell those goods produce at lesser rate so as to  increase their sales than that of  their market competitors.

Based on the scenario in order for Milo Millworks to accomplish the competitive advantage  for their framing style, the framing style must be difficult to substitute for.

Therefore the framing style must be difficult to substitute for.

Learn more about Competitive advantage here:brainly.com/question/26514848

#SPJ1

3 0
2 years ago
You have been given $100 to start a checking account. Considering the four P's discussed in the module, go online to research an
ser-zykov [4K]

Answer:

what are the four p's

Explanation:

4 0
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