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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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micro-merchandising

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3 0
3 years ago
Oregon Manufacturing Co. purchased a 10-ton draw press at a cost of $171,000 with terms of 3/15, n/45. Payment was made within t
lubasha [3.4K]

Answer:

4200

Explanation:

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2 years ago
Managers face contemporary challenges such as managing HIV-positive employees, managing older workers, and eliminating sexual ha
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5 0
3 years ago
Sometimes one observes that the price of a company's stock falls after the announcement of favorable earnings. This phenomenon i
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Sometimes one observes that the price of a company's stock falls after the announcement of favorable earnings. This phenomenon is consistent with the efficient markets hypothesis if the earning were not as high as anticipated

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3 0
1 year ago
Computing materials variances:
lesantik [10]

Answer:

1. Total cost of purchases for the month

  • = actual purchases x actual price = 200,000 pages x $0.175 per page = $35,000

2. Materials price variance

  • = (actual unit cost - standard unit cost) x actual quantity used = ($0.175 - $0.17) x 185,000 = $925 unfavorable

3. Materials quantity variance

= (actual quantity used - standard quantity allowed) x standard price = (185,000 - 170,000) x $0.17 = $2,550 unfavorable

4. Net materials variance

  • = materials price variance + materials quantity variance = $925 + $2,550 = $3,475 unfavorable

Explanation:

Actual purchase price  $0.175 per page

Standard quantity allowed for production  170,000 pages

Actual quantity purchased during month  200,000 pages

Actual quantity used during month  185,000 pages

Standard price per page  $0.17 per page

3 0
3 years ago
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