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Elodia [21]
3 years ago
6

During 2021, its first year of operations, Baginski Steel Corporation reported a net operating loss of $388,000 for financial re

porting and tax purposes. The enacted tax rate is 25%. Required:
1. Prepare the journal entry to recognize the income tax benefit of the net operating loss. Assume the weight of available evidence suggests that future taxable income will be sufficient to benefit from future deductible amounts arising from the net operating loss carryforward.
2. Show the lower portion of the 2021 income statement that reports the income tax benefit of the net operating loss.
Business
1 answer:
kipiarov [429]3 years ago
3 0

Explanation:

The journal entry is as follows:

1. Deferred tax assets  A/c Dr

           To Income tax benefit - Operating loss  A/c

(Being the income tax benefit is recorded)

The computation is shown below:

= Net operating loss × enacted tax rate

= $388,000 × 25%

= $97,000

2. Now the lower portion of the 2021 income statement is presented below:

Net operating loss before income tax     $388,000

Less:  Income tax benefit - Operating loss  -$97,000

Net loss                                                          $291,000

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Andrew is the prom committee chairman. He is at the prom and realizes that the meal delivered to the attendees was steak and not
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Answer:

monitoring and controlling

Explanation:

The five stages in the project management process are:

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3 years ago
Market Value Ratios You are considering an investment in Roxie’s Bed &amp; Breakfast Corp. During the last year the firm’s incom
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Answer:

Book value per share is $3.5, Earnings per share is $0.48, Market-to-book ratio is 2.0x; P/E ratio = 18.75

Explanation:

1. In order to calculate the book value of the shares we divide the total value of the shares by the number of shares which is $35,000,000/10,000,000 shares = $3.5

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3. Market to book ratio is derived by dividing the market value of the outstanding shares by its book value. Therefore ($9*10,000,000 shares)/$35,000,000 = 2.0 (written as 2.0x, implying that the market value of the shares of Roxie's Bed & Breakfast Corp. can cover its net assets (or equity) twice.)

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The answer is letter D.

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