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andreev551 [17]
3 years ago
14

49. Lodge Inc. reported pretax book income of $5,000,000. During the year, the company increased its reserve for warranties by $

200,000. The company deducted $50,000 on its tax return related to warranty payments made during the year. What is the impact on taxable income compared to pretax book income of the book-tax difference that results from these two events
Business
1 answer:
eduard3 years ago
6 0

Answer:

Unfavorable (increases taxable income).

Explanation:

$200,000-$50,000=$150,000Unfavorable (increases taxable income)

Book income would be $150,000 less than taxable income because the company increased its reserve for warranties by $200,000 and then went ahead to deduct $50,000 on its tax return related to warranty payments made during the year which is why the impact on taxable income compared to pretax book income of the book-tax difference that results from these two events will be $150,000 Unfavorable (increases taxable income).

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Job promotion and official recognition in form of an award are the motivational package I will give to the employee

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If an employee's performance after appraisal and due diligence is commendable because of its contribution to our organization goals, intrinsically, such person deserves to be promoted to a higher rank because his contributions are not premised on lip service and service seeking recognition.

On the contrary, when an employee's performance is premised on extrinsic factors after conducting necessary appraisal, such an employee simply does that because of the reward he or she seek, and not necessarily the passion attaches to the job. Hence, such employee can be given material compensation which can be monetized but not necessarily a job promotion.

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3 years ago
Some economists say that economic growth involves a​ trade-off between current generations and future generations. If a current
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Determine the maximum amount of charitable deduction for each of these contributions ignoring the AGI ceiling on charitable cont
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Complete question is attached in form of image.

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Maximum amount of charitable deduction for Cash contribution = $ 13100 and Maximum amount of charitable deduction for Property donation = $ 33625.

7 0
3 years ago
Prepare the journal entry for the issuance of these bonds. Assume the bonds are issued for cash on January 1, 2017. Garcia Compa
algol13

Answer:

Dr Cash $332,775

Cr Bonds payable $290,000

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Explanation:

Preparation of the journal entry to record the issuance of these bonds. Assume the bonds are issued for cash on January 1, 2017

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Dr Cash ($290000/100*114.75) $332,775

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I believe the answer would be D. I think
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