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tester [92]
3 years ago
7

An inexperienced accountant for Ayayai Corp. showed the following in the income statement: income before income taxes $250,000 a

nd unrealized gain on available-for-sale securities (before taxes) $85,000. The unrealized gain on available-for-sale securities and income before income taxes are both subject to a 25% tax rate. Prepare a correct statement of comprehensive income.
Business
1 answer:
Veseljchak [2.6K]3 years ago
8 0

Answer:

                          Ayayai Corp.

      Statement of Comprehensive Income

            For the Year Ended xxx, 202x

Net income                                                $187,500

Other comprehensive income:

<u>Unrealized gain on AFS securities           $85,000</u>

Comprehensive income                          $272,500

Explanation:

In order to prepare a statement of comprehensive income we first need to determine net income after taxes = $250,000 x (1 - 25%) = $187,500

Unrealized gains or losses are not taxed until they are actually realized (either make profit or lose money).

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Jody borrowed $25,000 from her controlled corporation for six months. She used the funds to pay her daughter's college tuition.
Thepotemich [5.8K]

Answer: $25,000

Explanation:

Amount borrowed = $25,000

Corporation interest = 3%($25,000)

= 3/100 × $25,000

= $750

Federal rate = 4%($25,000)

= 4/100 × $25,000

= $1,000

Total debt = $(25,000+750+1,000)

= $26,750

Jody earned $3,500 for the year. In six months, Jody'd earn 1/2 of $3,500 = $1,750

This means that $1,750 of Jody's income will go to Jody's controlled corporation account in six month.

The total inputed amount to be paid by Jody = Jody's total debt - Jody's income in six month

= $26,750 - $1,750

=$25,000

8 0
3 years ago
A taco company is losing business to a new restaurant down the road. To try to gain business back, the taco company launches an
Nuetrik [128]

Answer:

Defamation

Explanation:

A tort  is a wrongful act which leads to a legal liability against the party doing it. It is an infringement of right or misguiding people by spreading false statements against someone.

Here in this example A taco company losing its business to a new restaurant started making oral statements regarding the poor quality of the tacos offered by the new restaurant.

The taco company completely lied and will be liable legally for this tort because it do not have any legal prove for its oral statements to support itself. Its an example of defamation because the taco company tried to defame that is to spoil the image or goodwill of the new restaurant through spreading rumors against the food quality of the new restaurant.

5 0
3 years ago
On May 1, Shilling Company sold merchandise in the amount of $5,800 to Anders, with credit terms of 2/10, n/30. The cost of the
Arada [10]

Answer:

The correct answer is:

Debit: Account receivable $5,800

Credit: Sales revenue $5,800

Debit: Cost of goods sold $4,000

Credit: Merchandise inventory $4,000

Explanation:

On 1st May

Upon sale of inventory on credit

Debit: Account receivable $5,800

Credit: Sales revenue $5,800

On 1st May

To record cost of goods sold of merchandise inventory:

Debit: Cost of goods sold $4,000

Credit: Merchandise inventory $4,000

5 0
3 years ago
The dean of a school of business is forecasting total student enrollment for this year's summer session classes based on the fol
Fiesta28 [93]

Answer:

I used an Excel spreadsheet to calculate R² which gives us the least squares trend. See attached image.

y = 360x + 1600

R² = 0,9529

next year's enrollment should be = (360 x 5) + 1600 = 3400

5 0
3 years ago
How and why do congress and the president rely on administrative agencies?
GREYUIT [131]
<span>The Constitution makes it clear that the Congress, rather than the President of the United States, has power to assign</span>
3 0
3 years ago
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