Answer:
The total income tax expense for 2019 =152.000. Is not available in the options given by the exercise.
Explanation:
- Tax on insurance expense deductible for accounting purposes in 2019= 70000*40%=28.000
- Income tax expense for 2019 = 180.000-28.000=152.000
According to Adam Smith and other classical economists, why is the economic theory supporting market economies (or capitalism<span>) </span>much more realistic than theories supporting command economies<span>? ... Americans prefer to have the </span>market<span>, rather </span>than<span> the government, to manage their </span>economy<span>.</span>
<span>By utilizing economic theories, for example, Frequency disseminations, likelihood and likelihood conveyances, actual impedance, straightforward and various relapse investigation, synchronous conditions models and Time arrangement techniques, econometrics utilizes these speculations, math and statistical obstructions to evaluate the financial hypotheses.</span>
Answer and Explanation:
As per the data given in the question,
a)
1. FIFO inventory > LIFO inventory
(Because in case of LIFO recent purchases are considered in production first or sold first so the remaining inventory are old inventory which is less costlier.)
2. FIFO cost of goods sold < LIFO cost of goods sold
(Because in case of LIFO recent purchases are considered in production first which are expensive so the cost of production is greater than FIFO.)
3. FIFO net income > LIFO net income
(Because cost of production is less under FIFO and the value of closing inventory is high, therefore the net income is also high.)
4. FIFO income taxes > LIFO income taxes
(Since, income is high in FIFO, therefore the tax under FIFO will be higher.)
b)
Management would like prefer to use LIFO over FIFO in periods of rising prices because Income shown in the company's Tax return will be higher if we use FIFO rather than using LIFO.
Answer: $76,400
Explanation:
GIVEN THE FOLLOWING :
TAXABLE INCOME = $160,000
MUNICIPAL INTEREST = $20,000
ENTERTAINMENT EXPENSE = $55,000
FUN.
CURRENT E&P = (taxable income + interest) - (expenses + Tax deduction).
CURRENT E&P = $160,000 + $20000 - (55000 + 15000 + (160,000*0.21))
CURRENT E&P = 160000 + 20000 - 55000 - 15000 - 33600)
THEREFORE CURRENT E&P = $76,400
