Answer:
Lets shape the question so it makes some sense.
<em>Warranty costs amounting $500,000 were recorded in 2018 Income statement. However, the warranty tax deduction is not allowed until payment occurs in future years. Disscuss accouting implication</em>
See detail answer below.
Explanation:
As per tax laws warranty provision is not allowed as deductible expense only warranty cost incured/paid during the year is allowed deduction when computing taxable income.
So the company shall recoginze defferd tax asset for this expense in current year. Following entries will be made by the company for financial accounting purpose.
Deffered Tax Asset Debit $125000
Deffered Tax Income $125000
(Assuming applicable tax rates is 25%)
The next year when the warranty claim will be incured/paid the company will reverse the above entry and can claim tax deduction against this waranty cost paid but not on provision basis.
Answer:
C. Housing prices in cities generally increase more quickly than
anywhere else.
Explanation:
An investment is an activity that leads to an increase in value or wealth. A good investment is one that appreciates its value with a big percentage in a short period. Houses are always in demand in big cities. For this reason, their prices are ever appreciating.
Buying a single-family home in a city is a good investment decision because it is bound to appreciate in value. Should one decide to sell it later, they are highly likely to receive a much higher amount than they paid for it. The probability of making some good profits from the house is high.
Answer:
a- Red Hot is less efficient than Maverick Cycles in producing goods.
Explanation:
Given data
The Red Hot's Cost of goods sold/Revenue = 63.4%
And, the Cost of goods sold/Revenue of Maverick Cycles = 54.2%
By considering the above information, we can see that in the red hot case, the percentage is higher whereas in the maverick cycles the percentage is lower than reflecting the less efficient in the red hot case as the cost value that is incurred for producing the goods and services is higher than the sales revenue while in another case, the cost is lower as compared to the red hot
The statement which accurately describes the effect of the federal government rapidly reducing government expenditures is D.Unemployment rates will increase because federal spending makes up a large part of the economy. Since the goverment keeps up money for particular economic expenses, it means that the salaries will be decreased and the level of firing people wold decrease. Therefore, companies will not be able to offer a escent salary to their new empoyees which means that unemployment rate will grow.
