1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Umnica [9.8K]
3 years ago
6

Isaac Inc. began operations in January 2021. For some property sales, Isaac recognizes income in the period of sale for financia

l reporting purposes. However, for income tax purposes, Isaac recognizes income when it collects cash from the buyer's installment payments. In 2021, Isaac had $671 million in sales of this type. Scheduled collections for these sales are as follows: 2021 $ 82 million 2022 136 million 2023 128 million 2024 161 million 2025 164 million $ 671 million Assume that Isaac has a 25% income tax rate and that there were no other differences in income for financial statement and tax purposes. Ignoring operating expenses, what deferred tax liability would Isaac report in its year-end 2021 balance sheet
Business
1 answer:
djverab [1.8K]3 years ago
7 0

Answer:

$147.25 million

Explanation:

Differed tax Isaac would report in its year-end 2021 balance sheet is the difference between the total sales value and the amount scheduled to be collected in 2021 multiply by the tax rate.

Therefore we have:

Deferred tax liability in 2021 = ($671 million - $82 million) * 25% = $147.25 million

Therefore, Differed tax Isaac would report in its year-end 2021 balance sheet is $147.25.

You might be interested in
Aubey Aircraft recently announced that its net income increased sharply from the previous year, yet its net cash flow from opera
-Dominant- [34]

Answer:

Option D) The company's depreciation and amortization expenses declined

Explanation:

When Aubey Aircraft´s depreciation and amortization decrease, it has less cost of sales and an improvement in the Gross Margin, hence,  in the Net Income, but this enhancement in the Net Income has an opposite effect on Net Cash Flow because less depreciation and amortization means less Net Cash Flow,  

Net Cash Flow it's defined by Net Income plus depreciation and amortization, a less Depreciation means less Net Cash Flow.

8 0
3 years ago
Business Question! Just the first problem please, thank you
vovikov84 [41]

Answer:

  1. 34 coupons.
  2. $33.75

Explanation:

The coupons are the interest payments the bond makes.

1. The bond has a term of 17 years and coupons are to be paid semi-annually.

This means that for every year, 2 coupon payments will be made.

In 17 years therefore:

= 17 * 2

= 34 coupons

2. The interest on this bond is 6.75% in a year. The coupon is however, semi-annual. Payment per coupon will therefore be half of the yearly rate:

= 6.75% * 1,000 * 1/2

= $33.75

8 0
3 years ago
Read 2 more answers
Winnebagel Corporation currently sells 28,000 motor homes per year at $84,000 each and 7,000 luxury coaches per year at $135,000
MissTica

Answer:

$825,050,000

Explanation:

Calculation to determine the amount to use as the annual sales when evaluating this project

First step is to calculate the new product line sales

New product line sales =29,000*$24,700

New product line sales = $716,300,000

Second step is to calculate Increased sales of the motor home line

Increased sales=2,500*$84,000

Increased sales = $210,000,000

Third step is to calculate the loss in sales

Loss in sales=750*$135,000

Loss in sales= $101,250,000

Now let calculate the amount to use as the annual sales when evaluating this project

Net sales = $716,300,000 + $210,000,000 - $101,250,000

Net sales = $825,050,000

Therefore the amount to use as the annual sales when evaluating this project is $825,050,000

4 0
3 years ago
1976, the cost of a movie was $4. in 2012, it's $9. if the cpi for 1976 is 56, and 228 for 2012. how much is the cost of a 1976
ivann1987 [24]
$10.29 I'm not sure but hope I'm right
7 0
3 years ago
Studies indicate that the price elasticity of demand for cigarettes is about 0.4. A government policy aimed at reducing smoking
IrinaVladis [17]

Answer:

(B) 40%

Explanation:

↓Q / ΔPrice = Price-elasicity

The price elasticity is the relationship between a change in price with the quantity demanded of a certain good assuming, other factor remains constant.

ΔPrice  = (P0 - P1)/((P0 + P1)/2) = (2 - 6)/((2+6)/2) = 4/4 = 1

We know that price elasticity is 0.4

Now we can solve for the change in the quantity demanded:

↓Q/ 1 = 0.4

↓Q = 0.4 x 1 = 0.40 = 40%

7 0
3 years ago
Other questions:
  • Sapporo K.K. was sued by a competitor in late 2017, and company management concluded that there was a 55 percent probability tha
    14·1 answer
  • Marc recently went to his bank's website to check the payment due date on
    11·1 answer
  • Describe two types of organizational documents that can help you organize a job search. What is the purpose of each document? ne
    6·1 answer
  • Which of the following is NOT an example of a caught-in or caught-between hazard?
    8·2 answers
  • According to the text, which kind of practice makes perfect?
    5·2 answers
  • Market failure associated with public goods Deborah was willing to contribute $40 this year to her local college radio station.
    7·1 answer
  • The following journal entries were prepared by an employee of International Marketing Company who does not have an adequate know
    6·2 answers
  • Rita, a salesperson in a textile manufacturing company, makes a sales pitch to a representative of a garment manufacturing compa
    7·1 answer
  • The ____________________ prescribes that an accounting information system have internal controls, meaning, it employs methods an
    12·2 answers
  • Devin is preparing a Works Cited list. He has two articles by the same author.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!