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2 years ago

Taxable income of a corporation

Business

1 answer:

kobusy [5.1K]2 years ago

6 0

Answer:

Option b. Differs from accounting income due to differences in interperiod allocation and

permanent differences between the two methods of income determination.

Explanation:

Corporation examples are joint stock companies, joint accounts, associations, insurance companies e.t.c.

A Corporation taxable income is simply defined as a part of its profits generated by corporations that is collected by the Federal and State government as an income tax. It is known as a direct tax. It is placed on the net income or profit of a corporate organization. The tax rate for corporation uses the slab rate system or method of taxation that is based on the type of corporate entity and the different revenues gotten by them individually.

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3 years ago

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The following information is available for a company's cost of sales over the last five months. Month Units sold Cost of sales J

Mice21 [21]

TC Units

$64,500 (High) 2,470

} $30,700 } 2000

$33,800( Low) 470

VC per Unit = 30 700 ÷ 2000 = $15.35

when 470 units are sold,( substitute vc per unit = 15.35)

TC = FC + VC

33, 800 = FC + ( 15.35× 470)

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2 years ago

Suppose that the public holds 50% of the money supply in currency and the reserve requirement is 20%. Banks hold no excess reser

Mice21 [21]

Answer:

the required reserves will increase by 1,200 dollars

Explanation:

the required reserve ratio is 20%

for each dollar the bank receive in deposit it can loan up to 80% and must keep 20%

the multiplier will be: 1 / 0.2 = 5

each dollar of deposit will increase the money supply by 5

and each dollar withdraw will decrease money supply by 5

Therefore, for this deposit of 6,000 dollars the bank will kept:

$6,000 x 20% = $1,200

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2 years ago

More Parts Liquidators specializes in buying excess parts inventories for resale or to incorporate into other products. They rec

Alla [95]

Answer:

Sell the parts without any processing because the profit is higher ($20,000 vs $15,000)

Explanation:

they have two options:

option A, sell the parts as they are and make $20,000 in profits (= $120,000 - $100,000).
option B, further process the parts by spending $75,000 and sell them for $190,000, and make only $15,000 in profits (= $190,000 - $100,000 - $75,000).

The best option is A, to sell the parts without any processing because the profit is higher and they do not have to spend more money.

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2 years ago

Which of the following items is not a product cost?

sineoko [7]

Answer:

d. Transportation cost on goods delivered to customers.

Explanation:

Product cost is defined as the cost a business bears as a result of producing a product. This includes labor, cost of supplies, factory overhead costs, and cost of transporting supplies.

The cost of transporting product to the consumer is logistics cost.

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2 years ago