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klemol [59]
2 years ago
13

Mill Company began operations on January 1, 20X1, and recognized income from construction-type contracts under different methods

for tax purposes and financial reporting purposes. Information concerning income recognition under each method is as follows: Year Tax Purposes Book Purposes 20X1 $ 400,000 $ 0 20X2 625,000 375,000 20X3 750,000 850,000 Required: Assume the income tax rate is 21% in all years and that Mill has no other temporary differences. In its December 31, 20X3, balance sheet, what amount of deferred income taxes should Mill report
Business
1 answer:
Vinvika [58]2 years ago
5 0

Answer:

Deferred tax asset balance on  December 31, 20X3 =   $115,500

Explanation:

The computation of the amount of deferred income taxes should Mill report is shown below:

<u>Year   Tax purpose   Book purpose   Difference   Deferred tax book </u>

20X1     $400,000          $0                $400,000        $84,000

20X2    $625,000     $375,000         $250,000        $52,500

20X3     $750,000     $850,000        ($100,000)        ($21,000)

Deferred tax asset balance on  December 31, 20X3 =   $115,500

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Equinox Products Inc. Income Statement For the Year Ended December 31, 20Y8
Umnica [9.8K]

Answer and Explanation:

The preparation of the income statement is presented below:

                                     Equinox Products Inc.

                                        Income Statement

                     For the Year Ended December 31, 20Y8

Sales                                                                                    $5,313,000

Less: Cost of goods sold                                                   -3,700,000

Gross profit                                                                       $1,613,000

Less:

Operating expenses:

Selling expenses:

Sales salaries expense          $385,000

Sales commissions                 $185,000

Advertising expense               $150,000

Depreciation expense-

store buildings and equipment $100,000

Delivery expense $30,000

Store supplies expense $21,000

Miscellaneous selling expense $14,000

Total  -$885,000

Less:

Administrative expenses:

Office salaries expense $170,000

Office rent expense $50,000

Depreciation expense - office buildings and equipment $30,000

Office supplies expense $10,000

Miscellaneous administrative expense $7,500

Total $267,500

Total operating expenses                                                        $-1,152,500

Operating income                                                                       $460,500

Other revenue and expense:

Interest revenue $30,000

Less: Interest expense -$21,000

Income before income tax                                                           $469,500

Less: Income tax                                                                           -$140,500

Net income                                                                                      $329,000

We simply deduct the all expenses and add all revenues so that the net income could come

5 0
2 years ago
How much do you expect gas to cost in 2020?
mina [271]
Atleast 5 dollars because of how there is a limited supply of gasoline today
4 0
2 years ago
Read 2 more answers
Malone Imports stock should return 12 percent in a boom, 10 percent in a normal economy, and 2 percent in a recession. The proba
Rufina [12.5K]

Answer:

6.11%

Explanation:

For computing the variance, first we have to determine the expected return which is shown below:

= (Expected return of the boom × weightage of boom) + (expected return of the normal economy × weightage of normal economy)  + (expected return of the recession × weightage of recession)

= (12% × 5%) + (10% × 85%)  + (2% × 10%)  

= 0.6% + 8.5% + 0.2%

= 9.30%

Now the variance would equal to the

= Weightage × (Return - Expected Return) ^2

For boom:

= 5% × (12% - 9.3%) ^2

= 0.3645

For normal economy:

= 85% × (10% - 9.3%) ^2

= 0.4165

For recession:

= 10% × (2% - 9.3%) ^2

= 5.329

So, the total variance would be

= 0.3645 + 0.4165 + 5.329

= 6.11%

4 0
3 years ago
Art is a self-employed installer of home entertainment systems, and he drives his car frequently to installation locations. Art
kap26 [50]

Answer:

Explanation:

The expenses that Ryan can deduct for the business trips he had is calculated by summing up the expenses he had with regards to gasoline and the depreciation.

Cost of gasoline = (3,760 miles)($1,590/18,800 miles) = $318

Cost of depreciation = $4,800

Adding the costs will give us an answer of $5118.

Answer: $5,118

3 0
3 years ago
Garnett Co. shipped inventory on consignment to Hart Co. that originally cost $50,000. Hart paid $1,200 for advertising that was
Yuki888 [10]

Answer:

The answer is: Garnett Co.'s net income is $7,600

Explanation:

To determine the net income we must first calculate the cost of goods sold and the commissions paid:

  • COGS = $50,000 x 40% = $20,000
  • Commissions = $32,000 x 10% = $3,200

Now we can elaborate the following income statement for Garnett Co.

Total sales                     $32,000

COGS                             ($20,000)

Commissions                 ($3,200)

<u>Advertising expense     ($1,200)    </u>

Net income                    $7,600

8 0
2 years ago
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