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asambeis [7]
3 years ago
5

Cantlay, Inc., earns pretax book net income of $800,000 in 2019. Cantlay acquires a depreciable asset that year, and first-year

tax depreciation exceeds book depreciation by $80,000. Cantlay reported no other temporary or permanent book-tax differences. The pertinent U.S. Federal corporate income tax rate is 21% and Cantlay earns an after-tax rate of return on capital of 8%. What is Cantlay’s current income tax expense for the year?
Business
1 answer:
RideAnS [48]3 years ago
6 0

Answer:  $151,200

Explanation:

The Tax depreciation exceeds book depreciation so this excess will have to be removed from the income before tax is calculated as it is tax deductible.

Current Income Tax = (Pretax book income - Excess tax depreciation) * Income tax rate

= (800,000 - 80,000) * 21%

= $151,200

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Helmuth Inc's latest net income was $1,250,000, and it had 225,000 shares outstanding. The company wants to pay out 45% of its i
QveST [7]

Answer:

b. $2.50

Explanation:

Dividend paid = 45%*12,50,000

                        = $562500

dividend per share = 562500/225000

                                = $2.50

Therefore, The dividend per share should it declare is $2.50

4 0
3 years ago
What happens when the Federal Reserve puts money into the banking system
Anton [14]
When the Federal Reserve puts money into the banking system,<em> short term interest rates fall</em> <span>because there is more capital in the system. This means that  banks are willing to take more risks. 

>>></span><span>The </span>Federal Reserve<span> System‍—‌also termed as the </span>Federal Reserve<span> or the Fed‍—‌is the central banking system of the United States. </span>
4 0
3 years ago
A company had a standard sales price of $1.79 per unit and expected to sell 10,000 units. Due to a downturn in the economy, the
Sloan [31]

Answer:

Sales price variance = $1,900.

Explanation:

We know,

Sales price variance = (Standard sales price - Actual sales price) × Actual sales quantity

Given,

Standard sales price = $1.79 per unit.

Actual sales price = $1.59 per unit.

Actual sales quantity = 9,500 units.

Putting the values into the formula, we can get

Sales price variance = (Standard sales price - Actual sales price) × Actual sales quantity

or, Sales price variance = ($1.79 -  $1.59) × 9,500

or, Sales price variance = $0.2 × 9,500

or, Sales price variance = $1,900.

4 0
3 years ago
You are planning your retirement in 10 years. You currently have $169,000 in a bond account and $609,000 in a stock account. You
Over [174]

Answer:

$187,584.20

Explanation:

Firstly, we need to calculate the total future value (FV) of the bond account and stock account after 10 year from now (when you come to retirement age):

FV_bond at retirement = 169,000 x (1 + 7.25%)^10 + 7,100 x (1 + 7.25%)^9 + 7,100 x (1 + 7.25%)^8 + … 7,100 x (1 + 7.25%)^0 = 426,230.93

FV_stock at retirement = 609,000 x (1 + 10.75%)^10 = 1,690,653.63

Total FV of your investment portfolio = 2,116,884.57

Because you plan to use up all the funds in your account after 21 equal amount withdrawals after retirement, total present value <em>(at the time you retire not now)</em> of these withdrawals <em>(discounted at 6.5%)</em> have to be equal to the value of your invesment 10 years from now, or:

2,116,884.57 = C/(1+6.5%) + C/(1+6.5%)^2 + … + C/(1+6.5%)^21, with C is the amount you plan to withdraw each year.

Solve the equation we get C = 187,584.20

<em>Note: The equation can be solved easily using Excel or BAII Plus.</em><em> </em>

5 0
3 years ago
Long-term capacity plans deal with: a) investments in new facilities. b) workforce size. c) inventories. d) overtime budgets.
kaheart [24]

Answer:

The correct answer is a) investments in new facilities.

Explanation:

Business investment is the main way to obtain benefits in the short, long or medium term. For this, it is necessary to invest a certain capital in business or activities that allow the investor to increase it over time.

In the case of financial investment, capital is used to acquire securities, securities and other financial documents through which to obtain a benefit through the interest earned on them.

3 0
3 years ago
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