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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.

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You have been hired as a consultant by Feludi Inc.'s CFO, who wants you to help her estimate the cost of capital. You have been
Lisa [10]

Answer:

CAPM=5.6\%

Explanation:

as it is said we must apply the CAPM model, so we have:

CAPM=r_{f}+\beta (E\(r_{m})-r_{f} )

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CAPM=0.041+1.3(0.0525-0.041)

CAPM=5.6\%

8 0
3 years ago
A gardener is filling 5 planter boxes (cubical pots) with potting soil. Each box is 1.5 feet long on each side. The gardener has
Daniel [21]

Answer:

There is not enough potting soil. The gardener needs 1.875 cubic feet more potting soil.

Explanation:

In the given scenario we need to calculate the total volume of the cubic boxes.

Cubic volume = side * side * side

Cubic volume = 1.5 * 1.5 * 1.5

Cubic volume = 3.375 cubic feet

Since there are 5 planter boxes

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The volume of soil in the 3 bags is

Volume of soil in bags = 3 * 5 cubic feet = 15 cubic feet

So there is insufficient soil to fill the planter boxes.

The difference is

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Difference = 1.875 cubic feet of soil is short

4 0
3 years ago
Diminishing returns to specialization suggests that it is worthwhile for companies to Blank______. Multiple choice question. spe
aev [14]

The diminishing returns to specialization suggests that it is worthwhile for companies to specialize until that point where the resulting gains from trade are outweighed by diminishing returns.

<h3>What is the diminishing returns to specialization?</h3>

This diminishing return happens when the resources can move freely from the production of one good to another within a country.

However, its suggests that it is worthwhile for companies to specialize until that point where the resulting gains from trade are outweighed by diminishing returns.

Therefore, the Option A is correct.

Read more about diminishing returns

<em>brainly.com/question/19070161</em>

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6 0
2 years ago
If city a is located 35° west of city b, the time at city a is ________ that at city<br> b.
kumpel [21]
<span>If city a is located 35° west of city b, the time at city a is earlier that at city b. This is because the earth usually rotates form west to east which is counterclockwise when observed from above. The rotation of the earth gives us course of the day.</span>
8 0
3 years ago
Read 2 more answers
Define ''limited in stock''
zepelin [54]

Answer:

Explanation:

it means that the product wont be around aymore since its limited to retailer?

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