Answer:
b. $233,100 tax expense
Explanation:
The computation of the current income tax expense or benefit is shown below:
But before that first we have to need to find out the taxable income i.e
= Pretak book income + increase in net reserve warranties + exceeded amount - dividend deduction
= $1,000,000 + $25,000 + $100,000 - $15,000
= $1,110,000
Now to find out the current income tax expense since the tax rate is not given so we assume the marginal tax rate i.e 21%
So,
= $1,110,000 ×21%
= $233,100
By multiplying the taxable income with the tax rate we can get the income tax expense
Answer:
D. Becoming eligible as a dependent on his or her parent's joint tax return
Explanation:
In the case when the individual is disqualify from claiming the premium tax credit at the time when it become eligible as a dependent based on joint tax return of his or her parent
So this is the case when a single individual disqualify from the tax credit
Therefore as per the given situtation, the option d is correct
Answer:
local firm has debt worth $200,000, with a yield of 9%, and equity worth $300,000. It is growing at a 5% rate, and its tax rate is 40%. A similar firm with no debt has a cost of equity of 12%. Under the MM extension with growth, what is the value of your firm's tax shield, i.e., how much value does the use of debt add?
Explanation:
Answer:
Appreciate more
Explanation:
Suppose an increase in the demand for dollars has caused an appreciation of the dollar. According to the purchasing power parity theorem, the value of the dollar in the future will appreciate more. This is because the shift in demand and supply will cause an increase in the value of the dollar. Purchasing power parity (PPP) is a theory which states that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries.
Answer:
increase income or decrease total expenses
Explanation:
Over budget refers to a situation where the estimated costs exceed the actual resources available or the amount allocated. Over budget is when expenses are more than allocated finances.
There are insufficient funds in an over budget. To address the insufficient funds issue, more resources must be obtained, or the expenses must be reduced.
