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Anika [276]
3 years ago
6

(L.O. 2) Nolan Company sells its product on an installment basis, earning a $450 pretax gross profit on each installment sale. F

or accounting purposes the entire $450 is recognized in the year of sale, but for income tax purposes the installment method of accounting is used. Assume Nolan makes one sale in 2019, another sale in 2020, and a third sale in 2021. In each case, one-third of the gross sales price is collected in the year of sale, one-third in the next year, and the final installment in the third year. If the tax rate is 50%, what amount of deferred tax liability should Nolan Company show on its December 31, 2021 balance sheet:
Business
1 answer:
Maksim231197 [3]3 years ago
5 0

Answer:

$225

Explanation:

Calculation to determine what amount of deferred tax liability should Nolan Company show on its December 31, 2021 balance sheet:

Deferred tax liability =[ ($450/ 3) *50%]+ [($450 / 3 * 2) * 50%]

Deferred tax liability=$75+$150

Deferred tax liability = $225

Therefore the amount of deferred tax liability should Nolan Company show on its December 31, 2021 balance sheet is $225

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Answer:

37,000 common stock outstanding

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since the preferred stocks are non-cumulative, if dividends are not paid during a certain they are "lost" and will not be recovered.

Case B The preferred stock is cumulative, the total amount of dividends is $24,600

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If the Federal Reserve tightens the money supply, other things held constant, short-term interest rates will be pushed upward, a
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The statement is true

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<h3>What is a Balance Sheet?</h3>

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Therefore, Balance Sheet and income statement account include supplies, amount payable for interest and salaries.

Learn more on balance sheet here,

brainly.com/question/25846533

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