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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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In reviewing the accounting records of the transportation services fund, an internal service fund of douglas city, you notice th
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The reason why the fund uses the budgetary accounts because it is most likely needed that the funding budget to be approved legally by the city council in order for the budget funds to be used by the members or people responsible of handling the budgets.

5 0
3 years ago
________ distribution is a strategy in which producers of convenience prodcuts and raw material stock their products in as many
dem82 [27]

Answer:

Intensive Distribution

Explanation:

Intensive distribution is a strategy in which producers of convenience products and raw material stock their products in as many outlets as possible.

In this strategy, the producers of convenience products try to provide the product to the consumers where and when they want. In this way, consumers get brand exposure for any product they wish to buy and also it made convenient for them to buy the product. Example of such products are soaps, biscuits etc.

Thus the answer for the question is Intensive Distribution.

5 0
3 years ago
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A tennis coach charges $15 per hour for tennis lesson for children and $30 per hour for tennis lessons for adults. This can be v
Snowcat [4.5K]

Answer:

Option D is correct.

Third-degree price discrimination

Explanation:

tennis coach charges $15 per hour for tennis lesson for children and $30 per hour for tennis lessons for adults. This can be viewed as a practice of <u>Third-degree price discrimination.</u>

Third Degree Price Discrimination involves charging a different price to different groups of consumers for the same good. These groups of consumers can be identified by particular characteristics such as age, sex, location, time of use.

5 0
3 years ago
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Spring Resources LLC creates unique value by establishing a learning organization that coordinates various production tactics an
zubka84 [21]

Answer:

core competencies

Explanation:

From the question we are informed about who Spring Resources LLC creates unique value by establishing a learning organization that coordinates various production tactics and assimilates different types of technologies. This knowledge is distributed to the entire organization so that its branches can adapt and perform according to their own markets. These tactics and technologies distributed throughout the organization that create value for Spring Resources LLC are termed

Core competencies.

Core competencies can be regarded as resources as well as capabilities which comprise all strategic advantages of a business.

8 0
3 years ago
In 2018, the Barton and Barton Company changed its method of valuing inventory from the FIFO method to the average cost method.
Sati [7]

Answer:

In Barton and Barton Company's general journal, entry required include:

Debit Retained Earnings Account with $8.2 million

Credit Opening Inventory with $8.2 million

Being reversal of overstated inventory due to change from FIFO to Average cost method.

Explanation:

The debit entry to the Retained Earnings Account will reduce the balance by $8.2 million.  The effect of overstating the closing inventory is overstatement of the net income because the cost of sales was understated as a result of the inventory overstatement.

The credit entry to the Opening Inventory reduces the balance to the new balance based on the average cost method of $23.8 million.

The FIFO cost method or First-In, First-Out method is an inventory costing method that assumes that goods that were bought first were the ones to be sold first.  The inventory cost is therefore valued with the most recent quantity and cost price.

On the other hand, the Average Cost Method, also called the Weighted Average Cost Method, calculates the inventory cost by adding all the period's inventory and dividing it by the quantity for the period.  This gives an average cost which is in turn used to multiply the quantity of inventory at the end of the period to obtain the inventory cost.

Both methods are estimates that produce different results and affect the reported net income differently.  There is always the need for consistency in choosing the method to apply so that reported net income is not unduly distorted.

3 0
3 years ago
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