The amount of deferred tax liability that Warren Company reports at the end of Year 1 is $20,000.
<h3>What is deferred tax liability?</h3>
Deferred tax liabilities arise from <u>taxes to be paid in the future</u> when future taxable amounts become <u>taxable</u> or when the temporary differences <u>reverse</u>.
<h3>Data and Calculations:</h3>
Installment sales included in income statement = $50,000
Collection of installment sales:
Year 2 = $25,000
Year 3 = $25,000
Tax rate = 40%
Deferred tax liability based on installment sales = $20,000 ($50,000 x 40%)
Thus, the amount of deferred tax liability that Warren Company reports at the end of Year 1 is $20,000.
Learn more about deferred tax liability at brainly.com/question/16102904
Answer:
a.Cash - $133 Net Income $ 0
b.Cash $0 Net Income -$133
c.Cash $0 Net Income $1,297
d.Cash $865 Net Income $0
e.Cash -$2,528 Net Income $0
f.Cash $ 0 Net Income - $610
Explanation:
Item b. The Supplies Expenses will be recognized out of supplies account and this will reduce the Net Income
Item c. Sales made on Account does not Affect cash but increases Net Income.
Item d. Receipts from Customers only affects Cash and no effect on Net Income.
Item e. Purchase of Equipment is a Capital Expenditure that only affects cash.
Item d. The depreciation expenses only affects Net Income.
The relationship between stockholders and management can best be described as a(n) <u>Agency </u>relationship.
<h3>What is an agency relationship?</h3>
An agency relationship is a type of business relationship where someone is hired to act in the best interest of the other. The person who is hired is the agent and the other person is the principal.
In a stockholder and management relationship, the stockholder is the principal who has hired management as an agent to safe guard their interests.
Find out more on Agency relationships at brainly.com/question/26253714
#SPJ1
Answer:
hush puppies and u a who dis yah
Answer: $80,830
Explanation:
A. 3 months of this insurance should have been for the year:
= 3/12 * 16,800
= $4,200
This should be treated as an expense.
B. The services have not yet being performed so this should not be recognized as revenue but rather as Unearned revenue. It has to be deducted from Net income.
C. These supplies should have been treated as assets but they were treated as expenses. They need to be added back to the net income to correct it.
D. The interest for the 4 months of the year from September to December should have been recorded.
= 58,000* 4/12 * 12%
= $2,320
This should be treated as an expense.
Adjusted Net income = 88,000 - 4,200 - 2,800 - 2,320 + 2,150
= $80,830