Answer:
<h2>
net deferred tax benefit 42.500
</h2>
Explanation:
increase in warranty reserve 25.000
excess book depreciation 100.000
total 125.000
x tax rate 0.34
<h2>
net deferred tax benefit 42.500</h2><h2>
</h2>
*The reported pretax book income of $1,000,000 is not considered
Well I am glad you figured it out, good for you
Answer:
increase total assets by $1,300.
Explanation:
The net effect is shown below
The first entry is
Cost of goods sold Dr $2,300
To Merchandise Inventory $2,300
(Being the cost of inventory is recorded)
Now the second entry is
Account receivable Dr 3,600
To Sales revenue 3,600
(Being the sales is recorded)
Now the net effect is
= 3,600 - 2,300
= 1,300
This 1,300 reflect the increase in the total assets
A. The prices will decrease
Answer:
C. $(44 comma 000)
Explanation:
The computation of cash flow from investing activity is shown below:
Purchase of equipment for cash ($63,000)
Sale of equipment ($19,000)
Net cash flow from investing activity = - $63,000 + $19,000 = - $44,000
In this activity, the purchase of fixed assets should be negative as it is an outflow of cash whereas the sale of fixed assets should be positive as it is an inflow of cash.
