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aliina [53]
3 years ago
10

Davison Company determined that the book basis of its net accounts receivable was less than thetax basis of its net accounts rec

eivable by $800,000 due to a difference in the allowance for baddebts account. This basis difference is characterized as:A)Favorable permanent difference.B)Unfavorable permanent difference.C)Deductible temporary difference.D)Taxable temporary difference.
Business
1 answer:
Vesnalui [34]3 years ago
7 0

Question:

Davison Company determined that the book basis of its net accounts receivable was less than the tax basis of its net accounts receivable by $800,000 due to a difference in the allowance for bad debts account. This basis difference is characterized as:

A) Favorable permanent difference.

B) Unfavorable permanent difference.

C) Deductible temporary difference.

D) Taxable temporary difference.  

Answer:

The correct answer is C) Deductible Temporal Difference

Explanation:

A deductible temporary difference is a temporary difference that will result in amounts that can be subtracted in the future when determining taxable profit or loss. A temporary difference is the variance between the carrying amount of an asset or liability in the balance sheet and its tax base.

The future tax deduction enabled by the writing off of bad debts creates a future tax benefit and is usually recorded on the balance sheet as a deferred tax asset.

Cheers!

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Marysya12 [62]

Answer:

-1.10%

Explanation:

Calculation for percentage return on a stock

Stock percentage return=$46.20 + 1.67 - 48.40)/$48.40

Stock percentage return= = -.0110*100

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Therefore the percentage return on a stock is -1.10%

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2 years ago
Discontinue a Segment Product Tango has revenue of $1,150,000, variable cost of goods sold of $850,000, variable selling expense
Ronch [10]

Answer:

A) Differential analysis is shown below

B) its product should be continue.

Explanation:

As per the data given in the question,

a)

                      Continue product          Discontinue product        Differential

                        Tango(Alt 1)                       Tango(Alt 2)               Effects (Alt 2)

Revenue         $1,150,000                                $0                      -$1,150,000

Costs:

Variable COG Sold -$850,000                       $0                        $850,000

Variable selling and admin expenses  -$275,000     $0           $850,000

Fixed costs     -$125,000                                  $0                        $275,000

Profit(Loss)      -$100,000                                -$125,000            -$25,000

b)

As per analysis discontinuance of product Tango will enhance the amount of loss by $25,000, so it is recommended to continue the operation.

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A friend of Mr. Richards recently won a law suit for $30 million. They have the ability to either take the payments over 10 year
denis23 [38]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

A friend of Mr. Richards recently won a law suit for $30 million. They can either take the payments over 10 years or settle today for cash of $25 million. Mr. Richard is optimistic that he can earn a 6% return on the money and that they should settle for $25 million today and he will invest it for them.

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