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ivann1987 [24]
3 years ago
14

Burger King is a cash-basis taxpayer but maintains its financial accounting records using full

Business
2 answers:
iris [78.8K]3 years ago
8 0

Answer:

Explanation:

Given Data;

Profit from parcel of land = $10,000

Income tax structure: $20,000 of income is taxed at a rate of 10%.

All income above $20,000 is taxed at a rate of 20%.

Burger King current years taxable income = $38,000

Burger King total taxable income = $40,000

1. What tax rate should Burger King use in measuring (recording) deferred taxes on the $10,000?

From the question, federal income tax structure state that 20,000 of income should be taxed at a rate of 10%. That means Burger King will use 10% tax rate to record the deferred taxes on the $10,000.

2. Provide a brief written description of the proper tax rate to use in measuring deferred tax  expense for the current year?

The same tax rate set by federal income tax law is used for measuring current or deferred taxes. the company only need to indicate it while preparing their balance sheet .

tekilochka [14]3 years ago
5 0

Answer:

Defining current and deferred tax first;

Current Tax - Current tax is the amount of Income Tax determined to be payable in respect of taxable income for a period.

Deferred Tax - Deferred tax is the tax effect of the timing difference. The difference between the tax expenses (which is calculated on an accrual basis) and current tax liability to be paid for a particular period as per Federal Income Tax Law is called deferred tax (asset/liability). That is why Tax Expenses + Current Tax + Deferred Tax

on the basis of the above explanations the question has been solved below:-

Particulars Amount

Current Year Income as per financial accounting $ 48,000

Current Year Taxable Income as Income Tax Laws $ 38,000

Current Year Tax Payable on Income Taxable under Federal Income Tax Laws $ 5,600

Current Year Tax Payable on Income as per financial accounting $ 7,600

Deferred Tax Asset to be recorded in Books of Accounts $ 2,000

Tax Rate to be used to record Deferred Tax Asset in Books = 20%

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Oduvanchick [21]

Answer:

auto pay takes money out automatically

3 0
2 years ago
A speaker who begins with, "It's a pleasure to return to State University. As you know, I'm a graduate of State. Though it was s
Andre45 [30]

Answer:

C. Personal Reference introduction

Explanation:

This introduction type talks about a subject (State University) by relating the speaker or his experience to the subject.

(A) Quotation is something that is being said by someone. So whether or not this speaker related himself to the university, what he said would still have been taken as a quote or would be put in quotation marks when written down.

(B) A Rhetorical Question is one which is asked without the intent of getting an answer. First of all, there is no question in this speaker's speech.

(D) "Story" would have been the answer if there was no option (C) but the fact that option C exists and more perfectly describes his speech, makes (D) refutable.

5 0
3 years ago
In an effort to prevent future financial crises like the stock market crash of 1929, in the 1930s Congress: Multiple Choice pass
kumpel [21]

In an effort to prevent future financial crises like the stock market crash of 1929, in the 1930s Congress formed the FDIC.

<h3>What is the FDIC?</h3>

The Federal Deposit  Insurance Corporation (FDIC) was formed by th Congress after the stock market crash of 1929.Bank run was attributed to be one of the causes of the great depression. The FDIC increases confidence of depositors in banks because they insure the deposit of bank customers.

To learn more about the federal deposit insurance corporation, please check: brainly.com/question/827771

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6 0
1 year ago
Filer Manufacturing has 8 million shares of common stock outstanding. The current share price is $74, and the book value per sha
GaryK [48]

Answer:

10.45%

Explanation:

First find the cost of equity for the company

RE = [$4.60*(1.05) / $74] + 0.05

RE = 0.1153, or 11.53%

Then find the YTM on both bond issues

P1 = $950 = $45*PVIFA(R%,48) + $1,000*PVIF(R%,48)

R = 4.767%

YTM = 4.767%×2

YTM = 9.53%

P2 = $1,080 = $50*PVIFA(R%,16) + $1,000*PVIF(R%,16)

R = 4.298%

YTM = 4.298%×2

YTM = 8.60%

Total Debt = 0.95($80,000,000) + 1.08*($60,000,000)

Total Debt = $140,800,000

Weight of D1 = 76,000,000 / 140,800,000

Weight of D1 = 0.5398

Weight of D2 = 64,800,000 / 140,800,000

Weight of D2 = 0.4602

Weighted Average after-tax cost of debt

RD = (1 – 0.35)*[(0.5398)*(0.0953) + (0.4602)(0.086)]

RD = .0592, or 5.92%

Market value of equity = 8,000,000*($74) = $592,000,000

Market value of debt = $140,800,000

Total market value of the company = $592,000,000 + 140,800,000 = $732,800,000

Weights of equity and debt

E/V = $592,000,000 / $732,800,000 = 0.8079

D/V = 1−E/V = 0.1921

WACC = 0.8079(0.1153) + 0.1921(0.0592)

WACC = 0.1045, or 10.45%

7 0
3 years ago
B. At one time, the centrally planned economy of China encouraged farmers to produce
gladu [14]

Answer:

At one time, the centrally planned economy of China encouraged farmers to produce  iron in their backyards, rather than have factories make iron. This proved unsuccessful,  since most of the farmers' iron was of poor quality. Why do you think this approach was  unsuccessful? How could this experiment become a success in a free market economy?

The reason why the approach whereby farmers make iron in their backyard could not work out is as a result of not being inclined in that market as they are only skilled in agriculture, also they do not understand the rhetorics of the business.

The experiment would be a success in a free market as anyone is allowed to sell such product, this gives room for competition and helps to price reduction which is good for the consumers, also it would help in improvement of such product's quality because of competition involved

Explanation:

3 0
3 years ago
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