Answer:
Dorsett's net operating loss for Year 8 is $41,800.
Explanation:
From the question, we have:
Amount by which deductions exceeding gross income = $56,800
Net operating loss deduction (carryover from Year 7) = $15,000
Dividends received deduction = $6,800
In order to calculate Dorsett's net operating loss for Year 8, the dividends received deduction of $6,800 has to be fully allowed but the net operating loss deduction (carryover from Year 7) of $15,000 wouldn't be not allowed.
Therefore, we have:
Dorsett's net operating loss for Year 8 = Amount by which deductions exceeding gross income - Net operating loss deduction (carryover from Year 7) = $56,800 - $15,000 = $41,800
A. money value
A dollar is always worth more today than it would be worth tomorrow, according to the concept of the time value of money.
Answer:
$8,200
Explanation:
Missing word <em>"What is the ending normal balance of the Allowance account at year-end?"</em>
<em />
Particulars Amount
Opening balance $1,800
Add: Monthly provision $12,000 (2%*$600,000)
Less: Bad debt <u>$5,600</u>
Ending balance of allowance <u>$8,200</u>
Answer:
The correct answer is D.
Explanation:
Giving the following information:
Earnings before interest and taxes (EBIT) = $700 million.
Earnings before interest, taxes, depreciation and amortization (EBITDA) = $850 million.
Interest expense = $200 million.
The corporate tax rate is 40 percent.
First, we need to determine the depreciation expense.
Depreciation= EBITDA - EBIT= 850 - 700= 150million
Net cash flow= EBIT - Interest - Tax + Depreciation
EBIT= 700
Insterest= 200 million (-)
EBT= 500
Tax= 500*0.40= 200 (-)
Depreciation= 150 (+)
Net cash flow= 450 million
Answer:
a) 187,200 applied overhead
b( Overhead T-account
Overhead
<u> Debit Credit </u>
187,200
225,000
<u> 37,800 </u>
225,000 225,000
Balance: 0
c)
Cost of goods sold 37,800 debit
Factory overhead 37,800 credit
Explanation:
78,000 machine hours x 2.40 dollar per hour = 187,200 applied overhead
incurred overhead: 225,000
applied overhead 187,200
as the actual overhead is above the applied amount we underapplied we need to increase it by the difference:
225,000 - 187,200= 37,800