Answer:
No, It will not be same for Used vehicles.
Auto market is cyclical in nature, that reflects that it acts according to change in market. When there is economic expansion, the market grows as people have high tendency to spend, and during recession people do not have high tendency to spend, therefore, during recession people pay for repairs or even if it is not possible to repair vehicles, they tend to buy a used vehicle.
Because used vehicle will cost less as compare to a new vehicle.
Therefore, generally it will have complete opposite relation with market scenarios.
Answer:
a. Particulars Amount
Pre-tax income for 2015 $683,500
Less: Income tax expenses <u>$205,050</u> ($683,500*30%)
Net Income for 2015 <u>$478,450</u>
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b. Deferred tax liability = Temporary difference * Tax rate
= $165,500*30%
= $49,650
Income tax expense = Construction in process - Deferred tax liability
= $165,500 - $49,650
= $115,850
Date Account titles and Explanation Debit Credit
2015 Construction in progress $165,500
Deferred tax liability $49,650
Retained earnings $115,850
(To record deferred tax liability and retained earnings for 2015)
Answer:
Credit
Explanation:
The Common Stock Account is a also known as the stockholder's equity account.
Equity accounts maintain Credit balances with the corresponding Debit entries going to the Cash Received Account when the payment is made for the issued shares.
In the case of Rush Inc's issue of 10 shares at the Market Price of $10, the first entry in the Common Stock account is a Credit entry. Once, the corresponding debit entry will go the Cash Account.
The firm's market capitalization after the Initial Public Offering (IPO) with an outstanding shares of 5 million and current market price of $12 is $60 million.
<h3>What is market capitalization?</h3>
Market capitalization is the value of a firm's outstanding shares based on the current market price.
For this firm, the market capitalization is calculated as $60 million ($12x 5million).
Thus, the firm's market capitalization is $60 million.
Learn more about market capitalization at brainly.com/question/25300299
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