Answer:
Deferred Tax Liability= $564,000
Explanation:
The question is to determine the deferred tax liability to recognize by Sunland Co. at the end of the year 2017.
Step 1 :
We determine what the Income tax expense is for the year
Income tax expense= Pretax financial income x Income Tax rate
Income tax expense= $1,410,000 x 0.30 = $423,000
Step 2:
Although we recognized receivables as well as instalmental sales for reporting purposes under the accrual method. However, these will be subject to tax when we decide to recognize it in the future.
As such Deferred tax liability = Future Tax Liability
Deferred Tax liability for Sunland Co= Instalmental Sales x Income tax expense
= $1,880,000 x 0.3= $564,000
Answer:
jul-01 Prepaid expenses 13.620
jul-01 Cash 13.620
dec-31 Insurance policy expense 2.270
dec-31 Prepaid expenses 2.270
Explanation:
Paid 1-jul 13620
Three Years 13.620 36 months
Monthly 378 month
Current Year 2.270 6 months
jul-01 Prepaid expenses 13.620
jul-01 Cash 13.620
dec-31 Insurance policy expense 2.270
dec-31 Prepaid expenses 2.270
Answer:
C) $4,000
Explanation:
To calculate economic profit we can use the following formula:
economic profit = total revenue - (accounting costs + implicit costs) = (total revenue - accounting cost) - implicit costs
where:
- accounting profit = total revenue - accounting cost = $50,000
- implicit costs: ($20,000 x 5%) + $45,000 = $1,000 + $45,000 = $46,000
economic profit = $50,000 - $46,000 = $4,000
Answer:
a. $9,338
b. 0.363
Explanation:
a. Contribution Margin = Sales - Variable Cost
Where Sales = $25,700
Variable Cost = Food & Packaging + Payroll + 40% x General, Selling and Administrative expenses
V.C. = 8,982 + 6,500 + 40% * 3,700
V.C = 8,982 + 6,500 + 1,480
= $16,362
Therefore, Contribution Margin = Sales - Variable Cost
= $25,700 - $16,362
=$9,338
b. McDonald's contribution margin ratio = Contribution Margin / Sales
= $9,338 / $25,700
= 0.363
Answer: $23,888
Explanation:
The cost today for a freshman at a public university is $19,500.
Inflation is at 7% a year and the period is 3 years from now. It is best to use a future value formula:
= Fees * ( 1 + rate) ^ number of years
= 19,500 * ( 1 + 7%)³
= 19,500 * 1.225043
= $23,888
