Answer:
Dr. Investments in Associates 250,000
Cr. Cash 500,000
Dr. Cash 10,000
Cr. Investments in Associates 10,000
Dr. Investments in Associates 50,000
Cr. Investment revenue 50,000
Explanation:
The equity method is a type of accounting used to incorporate investments. It is used when the investor holds significant influence over the investee but does not exercise full control over it.
An investor is deemed to have significant influence over an investee if it owns between 20% to 50% of the investee’s shares or voting rights.
- Jolley receives dividends of $10,000, which is 25% of $40,000, and records a reduction in their investment account. The reason for this is that they have received money from their investee.
- Jolley records the net income from Tige Co. as an increase to its Investment account.
Answer:
Self employment tax will be $24000
So option (e) will be correct option
Explanation:
We have given that earning from outside consulting service = $30000
Deductible amount paid in connection with consulting service = $6000
We have to find the self employment tax
Self employment tax is the difference of earning from outside source and deductible amount
So self employment tax = $30000 - $6000 = $24000
So option (e) will be correct option
Answer:
Because the test statistic is less than the critical value, we can reject the null hypothesis and conclude that the population correlation coefficient is less than zero.
Explanation:
Because the question is based on the hypothesis test of the significance of the correlation coefficient to decide whether the linear relationship in the sample data is strong enough to use to model the relationship in the population. If the tests concludes that the correlation coefficient is not significantly different from zero, it means that the correlation coefficient is not significant.
Answer:
a. The mount of income tax expense does Walmart report in its income statement for 2015 was $8,074
b. The amount of Walmart's income tax expense that was determined from the company's tax returns is $8,615
c. Deferred taxes decreased Walmart's income tax provision for the year
Explanation:
a. In order to calculate what amount of income tax expenses does Walmart report in its income statement for 2015, we would have to use the following formula:
Income tax expenses= Current year income taxes + Deferred tax expense
Income tax expenses=$8,615-$541
Income tax expenses=$8,074
b. The amount of Walmart's income tax expense that was determined from the company's tax returns is $8,615. This are the Total current tax provision.
c. Deferred taxes decreased Walmart's income tax provision for the year becuase the Deferred taxes are benefit.
