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nika2105 [10]
3 years ago
12

Fox Co. reported a retained earnings balance of $800,000 at December 31, 20x1. In August 20x2, Fox determined that insurance pre

miums of $120,000 for the three-year period beginning January 1, 20x1, had been paid and fully expensed in 20x1. Fox has a 30% income tax rate. What amount should Fox report as adjusted beginning retained earnings in its 20x2 statement of retained earnings? a $840,000 b $880,000 c $836,000 d $884,000
Business
1 answer:
adell [148]3 years ago
8 0

Answer: None of the above, the answer is $856,000

Explanation:

The retained earnings of 2001 is arrived at after deducting the tax rate of 30% .

Prior to deduction of tax, operating income is

100/70* 800,000

= 1,142,857.14

The insurance premium that is related to year 2001 is one year which is $40,000 therefore ($120,000-$40,000) which is $80,000 will be added back to the operating income of $1,142,857.14.

This gives $1,222,857.14 the tax rate of 30% is now deducted to give a balance of 70/100*1,222,857.14

this gives the retained earnings of

approximately $856,000 to be carried forward to 2002.

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Answer:

$2,297.50

Explanation:

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EXCESS CAPACITY Williamson Industries has $7 billion in sales and $1.944 billion in fixed assets. Currently, the company’s fixed
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a. <u>Calculation of level of sales</u>

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interest group

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Answer:

Please find the complete question in the attached file.

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In order to study the impact on five forces and thereby decipher an offensive or defense strategy to stay competitive and maintained, management must employ a prototyping approach as Porters 5 Headed framework. Samsung, for example, should adopt a great combination because of its subsequent globalization.

Providers' bargaining power — In this industry, several companies offer low-cost services, which indicates the suppliers have much less bargaining energy.

Consumers' trading strength - Since Hyundai either works in a totally competitive environment or an oligopolistic marketplace across the globe.

The threat of new entries – The risk is significantly greater because new entries from low-cost China carriers can eat Samsung share since they are tax- and licensing-friendly.

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