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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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3 years ago
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26. Currently, Bruner Inc.'s bonds sell for $1,250. They pay a $120 annual coupon, have a 15-year maturity, and a $1,000 par val
maksim [4K]

Answer:

2.11%

Explanation:

From the information given; we use the Excel spreadsheet to compute the  difference between this bond's YTM(Yield to maturity) and its YTC(Yield to call).

From the diagram; we will see that the

YTM(Yield to maturity) = 8.91%

YTC(Yield to call).= 6.81%

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7 0
3 years ago
Read the following except from a warranty. What time period is this warranty for? "This warranty is given by XYZ motors. The Zoo
ArbitrLikvidat [17]

Answer:

The warranty period is for three years.

Explanation:

A warranty is a promise a buyer receives from the seller that the latter will repair or replace the product should it develop defects within a stated period. Warranties are granted with specific conditions. The universal condition is that the defects in the product are a result of the manufacturing process and not the buyers' misuse. The defect must occur within a stated period.

In the case of XYZ, the stated period is three years. However, the seller has introduced another condition of "or 30,000 miles whichever comes first." For business reasons, and from market experience, the seller expects that XYZ will use the vehicle at an average rate of 10,000 miles per year. At this rate, the warranty will last for three years. Should the buyer use the vehicle at a faster rate than this, the 30,000 miles will be exhausted earlier, which will bring the warranty to an end. If XYZ uses the vehicle at a slower or the expected rate, the warranty will last for three years.

7 0
3 years ago
The following information is available for the first month of operations of Lane Inc., a manufacturer of mechanical pencils:
aniked [119]

Answer:

a. Cost of goods sold = Sales - Gross profit

= $416,720 - $242,950

= $173,770

b. Direct materials cost = Materials purchased -Indirect materials - Materials inventory, end of period

= $128,350 - $45,220 - $17,090

= $66,060

c. Direct labor cost =Total manufacturing costs for the period - Direct materials cost - Factory overhead

= $239,610 - $66,060 - ($90,430 + $45,220 + $13,750)

= $239,610 - $66,060 - $149,380

=$239,610 - $215,440

=$24,170

7 0
3 years ago
Stockholders’ equity totaled $94,000 at the beginning of the year. During the year, net income was $24,000, dividends of $9,000
Scilla [17]

Answer:

$131,000

Explanation:

Given that,

Stockholders’ equity at the beginning = $94,000

net income = $24,000

Dividends paid = $9,000

Common stock issued = $22,000

Stockholders' equity at the end:

= Stockholders Equity at the beginning + Net Income - Dividend + Common stock issued

= $94,000 + $24,000 - $9,000 + $22,000

= $131,000

Therefore, the total stockholders' equity at the end of the year is $131,000.

7 0
3 years ago
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