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zmey [24]
3 years ago
12

the temporary difference is $60 million. Payne has no other temporary differences and no valuation allowance for the deferred ta

x asset. Taxable income for 2018 is $220 million and the tax rate is 40%. Required: 1. Prepare the journal entry(s) to record Payne’s income taxes for 2018, assuming it is more likely than not that the deferred tax asset will be realized. 2. Prepare the journal entry(s) to record Payne’s income taxes for 2018, assuming it is more likely than not that one-fourth of the deferred tax asset will ultimately be realized.

Business
1 answer:
anastassius [24]3 years ago
5 0

Answer:

Answers are available in the attached images

Explanation:

This question is incomplete. I will type the complete question below and add image attachments of the solution as tabulated journal entries are required.

At the end of 2017, Payne industries had a deferred tax asset account with a balance of $26 million attributable to a temporary book tax difference of $65 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $60 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2018 is $220 million and the tax rate is 40%. Required:

1. Prepare the journal entry(s) to record Payne’s income taxes for 2018, assuming it is more likely than not that the deferred tax asset will be realized.

2. Prepare the journal entry(s) to record Payne’s income taxes for 2018, assuming it is more likely than not that one-fourth of the deferred tax asset will ultimately be realized.

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Monthly sales are​ $530,000. Warranty costs are estimated at​ 3% of monthly sales. Warranties are honored with replacement produ
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Answer:

C. Estimated Warranty Payable for $15,900

Explanation:

The journal entry is shown below:

Warranty expense $15,900

    To Estimated warranty liability $15,900

(Being the warranty expense is recorded)

The computation is shown below:

= Monthly sales × estimated given percentage

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We simply debited the warranty expense as it increases the expenditure and credited the liabilities as it also increases the liabilities account

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The business owners involvement in the local business is much needed strategy. But to expand in new market it is necessary to adopt to niche marketing strategies.

<u>Explanation:</u>

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3 years ago
A waiting line problem has an average of 250 arrivals per eight hour day. Suppose there are several servers, and each has an ave
Marat540 [252]

Complete Question

A waiting line problem has an average of 250 arrivals per eight hour day. Suppose there are several servers, and each has an average service time of 8 minutes. (Assume Poisson arrivals and exponential service times.)

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Answer:

7½ arrivals per hour

Explanation:

Given

Arrivals = 250 arrivals per 8 hour day

Service Time of Servers = 8 minutes

The service time of Servers is given as 8 minutes.

This means that; on average, a server will attend to 1 arrival in every 8 minutes.

Calculating this per hour;

Average service rate of a server per hour = Service Rate * 1 hour per hour

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Average service rate of a server per hour = 1/8minutes * 60minutes/hour

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3 years ago
When a home is hit with a assessment to pay for an improvement in the neighborhood such as sidewalk repair, or paving a road, or
enyata [817]

Answer:

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This isn't something necessarily bad because you are going to pay higher taxes, but your neighborhood is also improving.

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Answer:

Price competition in a monopolistically competitive market

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