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LekaFEV [45]
3 years ago
9

Trey, Inc. reports a taxable loss of $140,000 for 2018. Its taxable incomes for the years 2015 through 2017 respectively were $2

5,000, $35,000, and $40,000. Trey has no temporary or permanent differences. Trey elects the carryback provision. Trey expects taxable income in future years and has a tax rate of 30% for all periods affected. What should Trey report as Net Loss on its 2018 income statement?
Business
1 answer:
laiz [17]3 years ago
8 0

Answer:

$117500

Explanation:

Taxable loss = $140000 for 2018

Taxable incomes : $25000 for 2015, $35000 for 2016, $40000 for 2017

tax rate = 30%

Net loss on 2018 income statement can be offset by the taxes paid on taxable income for 2 years prior to 2018 ( i.e 2016 and 2017 )

first calculate taxes on taxable incomes for 2016 and 2017

$35000 * 30% = $10500

$40000 * 30% = $12000

hence taxable profit = 10500 + 12000 = $22500

Net loss to be reported on 2018 income statement

= $140000 - $22500 = $117500

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Which of the following are the ways that a company can finance the purchase of assets? (You may select more than one answer. Sin
erica [24]
They can sell some shares
4 0
3 years ago
Hou Company applies factory overhead to its production departments on the basis of 90% of direct labor costs. In the Assembly De
Fofino [41]

Answer:

The journal entry is shown below:

Explanation:

Factory overhead is the term which is defined as the cost or expense which take place during production procedure. And it does not involve the cost in relation to direct labor and direct material.

The journal entry to apply the overhead to these production departments is as follows:

Work in Progress Inventory - Assembly A/c..............Dr $112,500

Work in Progress Inventory - Finishing A/c................Dr $ 31,500

            Factory Overhead A/c....................................................Cr  $144,000

Being the entry for applying the overhead is recorded

Working Note:

Work in Progress Inventory - Assembly = $125,000 × 90%

Work in Progress Inventory - Assembly = $112,500

Work in Progress Inventory - Finishing A/c = $35,000 × 90%

Work in Progress Inventory - Finishing A/c = $31,500

5 0
3 years ago
What was President Bush's response to the financial crisis?
Tasya [4]

Answer:

The answer is e. to support a federal bailout of the banking industry

Explanation:

To response to financial crisis, President Bush had addressed in the public television that the federal bailout of damaged financial institutions was necessary to avoid long and painful recession.

In fact, his administration had implemented an $700 billion worth of Trouble Asset Relief Program since October 2008, in which the amount from federal government's budget was spent on bailout damaged financial institutions such as American International Group (AIG), and bad mortgage debts.

So, e is the correct choice.

7 0
3 years ago
The purpose of a budget is to track your income and your spending. true or false?
skad [1K]
False we use it to save money
3 0
3 years ago
Read 2 more answers
The rule of 70 is a measure of how long it will take for prices to __________ at a given inflation rate.
swat32

Answer:

A. double

Explanation:

Rule 70 is used to calculate the numbers of years it takes for an investment  or variable to double in value given a certain growth rate. In this case, the variable is prices and the growth rate is  inflation  rate. It is calculated by dividing number 70 by inflation rate.

For example;

Assume inflation rate is 6%, the prices will double in ; 70/6 = 11.7 years

And if inflation is 2%, the prices will double in 70/2 = 35 years

8 0
3 years ago
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