1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
attashe74 [19]
3 years ago
10

Cabot Company reported a pretax operating loss of $50,000 for financial reporting and tax purposes in 2018. The enacted tax rate

is 40% for 2018 and subsequent years. Assume that Cabot requests a refund of taxes already paid by electing a loss carryback. Taxable income, tax rates, and income taxes paid in Cabot's first four years of operations were as follows: Taxable Tax Taxes income rates paid 2014 $30,000 30% $9,000 2015 35,000 30% 10,500 2016 42,000 35% 14,700 2017 40,000 40% 16,000 Required: (1) Prepare the journal entry to record Cabot's income taxes for the year 2018. Show well-labeled computations. (2) Compute Cabot's net loss for 2018.
Business
1 answer:
Nady [450]3 years ago
5 0

Answer and Explanation:

1.

Net Operating loss carryback  Amount  Rate of Tax  Tax Recorded as

Carried back - 2014               $0.0          30%         $0.0  

Carried back - 2015               $0.0          30%         $0.0  

Carried back - 2016           $42,000        35% $14,700.0  

Carried back - 2017           $8,000.0       40% $3,200.0  

Total Carryback                 $50,000.0                    $17,900.0

Journal Entries - Cabot Company

Date                Particulars                                  Debit Credit

31-Dec-18      Receivables - Income Tax Refund  $17,900

          To Income tax benefit - Net Operating Loss           $17,900  

2. Cabot's net loss for 2018 = -$50,000 + $17,900

                                          = ($32,100)

You might be interested in
A bank will not require security in the form of collateral as a guarantee the loan will be repaid.
Flauer [41]
The answer is so true
6 0
3 years ago
Read 2 more answers
Imagine that a designer writes content for their online portfolio. To come across as knowledgeable about UX design, they include
denis23 [38]

To improve their written content, the designer can do the following:

  1. Understand the audience he targets.
  2. Incorporate storytelling to capture the interests of his audience.
  3. Make the presentation simple.
  4. Incorporation of text in the User Interface.
  5. Make a good copy to sell your skill.

<h3>Who is a designer?</h3>

A designer is an individual that uses computer-aided software and devices to plan and draw the soft/hard copies of a material.

A User Interface designer designs the screens that users go through while surfing a website.

To improve their written content and improve their portfolio, they can use the numbered steps above.

Learn more about UI Designers here:

brainly.com/question/898119

5 0
2 years ago
When a new product is being introduced and reaching as many persons in the target market as quickly and as cost effectively as p
gtnhenbr [62]

Answer: Advertising

Explanation:

For a new company to quickly reach as many customers as quickly as possible, the company has to be involved in selling itself to the public and also intensive advertising.

Advertising is a form public awareness created for a particular product: which is new or already existing in a market. Advertising could involve the use of; Mass media, social media, fliers and banners.

6 0
3 years ago
Adam borrowed money to buy a new car. The bank now has a lien on the car. What could happen if Adam doesn't make his payments on
larisa [96]
The correct answer is A The bank could sell the car.
The bank could take back the car and sell it to recover its money.

6 0
3 years ago
Read 2 more answers
At the current prices of goods X and Y, the quantity demanded of good X is 10 units, and the quantity demanded of good Y is 5 un
damaskus [11]

Answer:

When the price of good y increases by 10% it will result in the quantity demanded of x to increase by (0.6*10) =6%. The current quantity demanded of good x is 10 so a 6% increase will mean the quantity demanded of x will be (1.06*10)= 10.6

Explanation:

The cross elasticity of goods x and y is 0.6, which means that a one percent increase in price of good y will increase the demand for good x by 0.6%, this means that x and y are substitute goods, as when the price of y increases people tend to buy more of x.

When the price of good y increases by 10% it will result in the quantity demanded of x to increase by (0.6*10) =6%. The current quantity demanded of good x is 10 so a 6% increase will mean the quantity demanded of x will be (1.06*10)= 10.6

8 0
3 years ago
Other questions:
  • Match the financial institutions with the features.
    8·1 answer
  • What is the purpise of a Appraisal Form?​
    5·1 answer
  • On December 31, 2017, Coolwear, Inc. had a balance in its prepaid insurance account of $48,400. During 2018, $86,000 was paid fo
    8·1 answer
  • If closing costs of $1,400 are associated with the refinance of reduce the monthly payment fro m $980 to $870 refinance, it woul
    10·1 answer
  • Organizations are increasingly using teams for many reasons. The difference between a good team and an outstanding team has been
    14·1 answer
  • Atlantis Fisheries issues zero coupon bonds on the market at a price of $455 per bond. If these bonds are callable in 5 years at
    9·2 answers
  • The Superintendent can examine an authorized fraternal benefit society and property/casualty insurance company once every:______
    6·1 answer
  • Discuss the different roles played by the qualitative and quantitative approaches to managerial decision making. Why is it impor
    9·1 answer
  • From the next year onwards, Colt Systems is estimated to have an EBIT of $15 million. It will also spend $6 million annually on
    10·1 answer
  • Davidson Corporation manufactured 58,500 units during September. The following fixed overhead data relates to September: Actual
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!