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Aleonysh [2.5K]
3 years ago
11

North Inc. is a calendar-year C corporation, accrual-basis taxpayer. At the end of year 1, North accrued and deducted the follow

ing bonuses for certain employees for financial accounting purposes. $7,500 for Lisa Tanaka, a 30 percent shareholder. $10,000 for Jared Zabaski, a 35 percent shareholder. $12,500 for Helen Talanian, a 20 percent shareholder. $5,000 for Steve Nielson, a 0 percent shareholder. Unless stated otherwise, assume these shareholders are unrelated. How much of the accrued bonuses can North Inc. deduct in year 1 under the following alternative scenarios? (Leave no answer blank. Enter zero if applicable. Input all amounts as positive values.) a. North paid the bonuses to the employees on March 1 of year 2.
Business
1 answer:
victus00 [196]3 years ago
3 0

Answer:

North can deduct $35,000 for the accrued bonuses ($7,500 + $10,000 + $12,500 + $5,000)

Explanation:

The corporation has until the middle of March to deduct any bonuses handed out that correspond to past performance. After this 2¹/₂ month period is over, the bonuses must be deducted during the next accounting period.

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The 2016 income statements of Leggett & Platt, Inc. report net sales of $3,749.9 million. The balance sheet reports accounts
sergejj [24]

Answer:

option (A) 49 days

Explanation:

Data provided:

Net sales = $3,749.9 million

Accounts receivable on December 31, 2016 = $486.6 million

Accounts receivable on December 31, 2015 = $520.2 million

Now,

The duration from December 31, 2015 to December 31, 2016 = 365 days

Days sales outstanding = \frac{\textup{Average accounts receivable}}{\textup{Credit sales}}\times Number of days

or

Days sales outstanding = \frac{\frac{\$486.6 + \$520.2}{2}\textup{million}}{\$\textup{3,749.9 million}}\times365

or

Days sales outstanding = \frac{\$\textup{503.4 million}}{\$\textup{3,749.9 million}}\times365

or

Days sales outstanding = 48.99 ≈ 49 days

Hence,

The correct answer is option (A) 49 days

5 0
3 years ago
If GDP is expected to increase at a steady rate of 3% per year, how many years would it take for living standards to double
Troyanec [42]

Answer:

24 years

Explanation:

In a situation where a country GDP which is fully known as GROSS DOMESTIC PRODUCT was been expected to increase or grow at a rate of 3% per year or per annual which means that it will actually takes up to 24 years for a country economy living standard to double .

Therefore the numbers of years it would take for a country living standards to double will be 23 years.

5 0
3 years ago
When a woman died, a deed was found in her desk drawer. the deed had been signed, dated, and acknowledged but not recorded. the
kow [346]
The house will most likely go to her Nephew.
5 0
3 years ago
American​ Exploration, Inc., a natural gas​ producer, is trying to decide whether to revise its target capital structure. Curren
Marat540 [252]

Answer:

a) 9.00 %

b) 7.80 %

c) yes the weight of the debt increases here is more risk in the investment as the debt payment are mandatory and failing to do so result in bankruptcy while the stock can wait to receive dividends if the income statement are good enough

d) 9.00  %

e) The increase in debt may lñead to an increase in return of the stockholders if they consider the stock riskier than before and will raise their return until the WACC equalize at the initial point beforethe trade-off occurs

Explanation:

a)

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

Ke 0.12

Equity weight 0.5

Kd(1-t) = after tax cost of debt = 0.06

Debt Weight = 0.5

WACC = 0.12(0.5) + 0.06(0.5)

WACC 9.00000%

c)

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

Ke 0.12

Equity weight 0.3

Kd(1-t) = after tax cost of debt = 0.06

Debt Weight 0.7

WACC = 0.12(0.3) + 0.06(0.7)

WACC 7.80000%

d)

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

<em>Ke 0.16</em>

Equity weight 0.3

Kd(1-t) = after tax cost of debt = 0.06

Debt Weight 0.7

WACC = 0.16(0.3) + 0.06(0.7)

WACC 9.00000%

3 0
3 years ago
Mr. and Mrs. Pitt filed a joint tax return in 2017. The couple divorced in 2018. The IRS audited their 2017 return and determine
AURORKA [14]

Answer:

C. Because the couple is divorced, the IRS must apportion the deficiency between Mr. and Mrs. Pitt based on their relative contribution to their 2015 taxable income.

Explanation:

Because Mr and Mrs Pitt filed for a joint tax return in 2017 and got divorced in 2018 and IRS audited their tax return and found that they both underpaid their tax, the IRS must apportion the deficiency 50-50 between both of them based on their separate returns.

3 0
3 years ago
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