1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
KonstantinChe [14]
4 years ago
15

On January 1, 2020, Piper Corp. purchased 40% of the voting common stock for of Betz, Inc. for $2,000,000 and appropriately acco

unts for its investment by the equity method. During 2020, Betz reported earnings of $720,000 and paid dividends of $240,000. Ignore the dividend-received deduction. Piper's current enacted income tax rate is 21%. The increase in Piper's deferred income tax liability for this temporary difference is
Business
1 answer:
Neko [114]4 years ago
6 0

Answer:

$57,600

Explanation:

The computation of the increase in Piper's deferred income tax liability for this temporary difference is shown below:-

Purchase of voting Common stock of Betz inc. by Piper Corp.= ( Betz's reported earnings - Betz Paid Dividends ) × (Percentage of the voting Common stock of Betz inc.)

= ($720,000 - $240,000) × 40%

= $480,000 × 40%

= $192,000

Now, the rise in Piper's deferred income tax liability for this temporary difference is

Purchase of voting Common stock of Betz inc. by Piper Corp. × enacted tax rate

= $192,000 × 30%

= $57,600

You might be interested in
To provide better service for their customers, America Online purchased office space in India for their online customer service
jekas [21]

Answer:

Foreign Direct Investment

Explanation:

For an investment to be called a foreign direct investment, a business in one country must purchase a form of controlling ownership in another business which is located in another country. Mergers and acquisitions, opening a new facility in another country, or purchasing properties in another country for the purpose of doing business is called FDI. In the question, America Online purchases office space in India; this is purely an example of Foreign Direct Investment.

4 0
4 years ago
. Suppose you filed your taxes and received a small refund from the IRS. What would have been the impact on the refund amount if
Andrew [12]
Letter A is the right answer

3 0
4 years ago
Assume a firm faces these costs: total cost of capital $4,000; price paid for labor = $20 per labor unit; and price paid for raw
insens350 [35]

Answer:

A) total cost = (200 labor hours x $20) + (500 units of raw materials x $8) + $4,000 cost of capital = $12,000

average total cost per unit = $12,000 / 2,000 units = $6 per unit

B) new total cost = (100 labor hours x $20) + (500 units of raw materials x $8) + $4,000 cost of capital =  $2,000 + $4,000 + $4,000 = $10,000

average total cost per unit = $10,000 / 3,000 units = $3.33 per unit

C) When process innovation occurs, total productivity and efficiency increase, decreasing the average cost per unit. In this case the total cos decrease, but even if total costs do not decrease, higher efficiency and productivity can be achieved by production more units at the same total costs. Process innovations, usually related to new technologies, are responsible for the greatest increases in productivity and efficiency which result in higher economic output and growth.

7 0
4 years ago
On January 1, 2020 (the date of grant), Concord Corporation issues 2,300 shares of restricted stock to its executives. The fair
ioda

Answer:

Explanation:

Date. Description/Account. Debit. Credit.

1/1/2020. Unearned Compensation. $69,000

Paid - in Capital in Excess of Par. $69,000

Common stock. $10,000

12/31/2020 Compensation Expense. $23,000

Unearned Compensation. $23,000

5 0
3 years ago
Discuss the logic underlying the use of three-sigma limits on Shewhart control charts. How will the chart respond if narrower li
AnnZ [28]

Answer:

The Shewhart control charts are charts used to monitor processes and behaviours in businesses statistically to ensure they are under control. They have been known to produce superb results especially with the use of the 3-sigma limits. The use of narrower limits provides practicality in testing more scenarios, the investigation of more causes and detection of more false causes.

Explanation:

The use of the 3 sigma limits in the Shewhart control charts using narrow limits provides for better control of business enterprises by ensuring that more investigations and detection of false causes are conducted. Thes gives a much more specific range of results in practice compared to the wide range approach.

7 0
4 years ago
Other questions:
  • In what type of weather do most collisions occur
    15·1 answer
  • When marketers at walmart first establish a set of communication objectives, then determine which media best reaches the target
    5·1 answer
  • Seattle, Inc. owns an 80 percent interest in a Portuguese subsidiary. For 20X8, Seattle reported income from operations of $2.0
    11·1 answer
  • In the united states, the fractional reserve policy that governs commercial banking is controlled by the ______________.
    15·1 answer
  • JBC Corp. declared a dividend of $2 per share, which was an increase of 25% from the prior year, yet JBC Corp. stock declined by
    6·1 answer
  • Three primary ledgers used in double-entry bookkeeping?
    13·1 answer
  • A company invested​ $45,000 in Yale Co. stock. The investment represented​ 5% of the voting stock of Yale Co. If the Yale Co. st
    6·1 answer
  • How long does it take irs to accept tax return 2021?.
    10·1 answer
  • Enrique is trying to decide which college is the best for his career choice, which is aeronautical engineering. If his top prior
    13·1 answer
  • in an effort to combat the high costs and losses associated with turnover, managers at an analytics firm are studying the recrui
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!