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KengaRu [80]
2 years ago
6

Jimenez Enterprises is incorporated in Arkansas. It generated a $5,000,000 profit on its overseas operations this year. Jimenez

paid $2,000,000 in income taxes to other countries. Jimenez's marginal Federal income tax rate is 21%. Compute the Jimenez Enterprises' foreign tax credit and carryovers for the year.
Business
1 answer:
anygoal [31]2 years ago
3 0

Answer:

Consider the following explanation

Explanation:

Foreign tax credit allowable is the minimum of Federal Income Tax and Income tax paid in foreign country. Here, Jimenez had paid 40% (2,000,000/5,000,000) income tax in foreign country. So. Jimenez will only be eligible to take foreign tax credit of 1,050,000 i.e. 5,000,000 * 21% and there will be carryover of $950,000 (2,000,000 - 1,050,000) foreign taxes.

There is carryover tax when we cannot use the whole amount of foreign tax credit in the current year and the balance foreign tax is carried over to future years.

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On July 1, 2008, Sheeley Company pays $8,000 to its insurance company for a 2-year insurance policy.InstructionsPrepare the nece
Readme [11.4K]

Answer:

Debit Prepaid insurance  $8,000

Credit Cash account         $8,000

Being entries to recognize prepaid insurance as at July 1 , 2008

Debit Insurance expense $2,000

Credit Prepaid Insurance $2,000

Being entries to recognize insurance expense as at December 31.

Explanation:

The amount paid by Sheeley Company On July 1, 2008 is a prepayment (an asset) as it is paid in advance. The insurance cover was yet to be enjoyed as at that date.

Entries required to recognize this payment

Debit Prepaid insurance  $8,000

Credit Cash account         $8,000

Being entries to recognize prepaid insurance as at July 1 , 2008

As at 31 December, the company would have incurred expenses for 6 months out of the 24 months (2 years) paid for.

This amounts to

= 6/24 × $8,000

= $2,000

To recognize this by December 31

Debit Insurance expense $2,000

Credit Prepaid Insurance $2,000

Being entries to recognize insurance expense as at December 31.

3 0
3 years ago
Prices for many goods are higher in the city of Shenzhen on the mainland of China than in the city of Hong Kong. An article in t
Marysya12 [62]

Answer:

A) buy the product in Hong Kong and sell it in Shenzhen so eventually the price in Shenzhen will decrease and the price in Hong Kong will increase

Explanation: when the price of the product in Shenzhen reduces due to the low priced product being sold in same place the high priced is sold, this would even out the demands and the price of that in Shenzhen would be dragged down to be able to compete with that of the low priced.

5 0
2 years ago
The Mass Rapid Transit (MRT) System in Hong Kong has been running significant losses. Transport Ministry officials have argued o
Aleonysh [2.5K]

Answer:

A) -0.55

B) The  negativity in the estimated elasticity suggests that for every 1% increase in the price of transport there will be a corresponding 0.55% decrease in  the number of Commuters

Explanation:

Given data:

current fare (P0) = $4

hiked fare (P1)  = $6

change in fare = $2

number of rides before increase ( Q0 ) = 10000

number of rides after increase ( Q1 ) = 8000

change in rides = 2000

A) The estimated elasticity of demand for MRT rides using the midpoint /ARC method

Mid point method = [ ( Q1 - Q0 ) / ( Q1 + Q0 ) ] / [ (P1 - P0 ) / (P1 + P0 ) ]

                              = [ - 2000 / 18000 ]  / [ 2 / 10 ]

                              = - 1000 / 1800 =  - 5 / 9 ( estimated elasticity )

= - 0.55

B) The  negativity in the estimated elasticity suggests that for every 1% increase in the price of transport there will be a corresponding 0.55% decrease in Commuters

4 0
3 years ago
Jill frequently updates her attorney about business developments and she frequently reads blogs and trade articles related to he
Pachacha [2.7K]

Answer:

Being proactive

Explanation:

In business, being proactive refers to steps that a person take in order to keep taking new initiatives that can improve the business.

This can be seen In Jill's actions.

she read blogs, trades articles and continue to communicate about the legalities on her business.

What she's doing will increase her knowledge in the market and prevent unnecessary cost that might occurs from legal issues. Both of these would most likely increase the chance of her success.

6 0
3 years ago
Alton Co. had a cash balance of $32,300 recorded in its general ledger at the end of the month, prior to receiving its bank stat
Maurinko [17]

Answer:

$32,432

Explanation:

Cash balance per cash book                                 $32,300

Bank service charge                                                        (15)

Returned check                                                               120

Correction of Deposit                                             <u>          27</u>

Adjusted cash balance per general ledger          <u>  32,432 </u>

The bank charge will be recognized as a credit in the cash account. The returned check had been credited before and will be debited back to reverse the earlier treatment.

Additional deposit of $27 will be recognized in the books being the difference between $258 that had been recognized and $285 the actual amount.

The outstanding checks of $1,800 will not be adjusted for as the transactions are valid.        

5 0
3 years ago
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