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3 years ago

When a firm uses the LIFO inventory cost flow assumption: ____________

Business

1 answer:

o-na [289]3 years ago

5 0

Answer:

Answer is D. better matching of revenue and expense is achieved than under FIFO.

Explanation:

The inventory cost flow assumption describes the flow of product cost: from the inventory and to cost of goods sold. When a firm uses the LIFO inventory cost flow assumption: better matching of revenue and expense is achieved than under FIFO.

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Sweet Company reports a pretax financial income of $72,600 for 2020. The following items cause taxable income to be different th

liq [111]

Answer:

A) taxable income = $91500,income tax payable = $27450

d) effective income tax = 28.86%

Explanation:

A) i) taxable income

= pretax financial income + excess rent collected +nondeductible fines -excess depreciation per tax return

= $72600 + $21700 + $11700 - $14500 = $106000 - $14500 = $91500

ii) income taxes payable for 2020

= 30% of taxable income = 30% * 91500 = $27450

B) journal entry for income tax expense, deferred income taxes and income taxes payable for 2020

Income tax expense = debit ( income tax payable - deferred ) $20950

deferred income taxes = debit ( 30% of excess rent collected ) 30% of 21700 = $6500

Income taxes payable = credit ( $27450 )

deferred tax liability = credit ( 30% of excess depreciation per tax return ) 30% of $14500 = $4350

C) Income tax expense section of the income statement for 2020

income statement (partial)

income before taxes = $72600

income tax expense current= $27450

income tax expense - differed = $27450 - $6500 = $20950

net income = income before taxes +( income tax expense - differed)

= $93550

D) effective income tax

= (income tax expense -differed)/ income before taxes = $20950/72600 = 28.86%

3 0

4 years ago

Cairns owns 80 percent of the voting stock of Hamilton, Inc. The parent’s interest was acquired several years ago on the date th

tensa zangetsu [6.8K]

Answer:

hello your question has a missing journal entry table attached below is the entry journal table completely filled

Explanation:

Amount of bonds acquired = 40% of original bond

i) Bonds payable = 40% * 1,300,000

= $520000

purchase price of bonds = $520000 * 96% ( FACE VALUE )

= $499200

hence the annual amortization

(bonds payable - purchase price of bonds ) / 10 years - 2 years

(520000 - 499200 ) / 8 = $20800/8 = $2600

ii) premium on bonds payable

$20800 - $2600 = $18200

cash amount = $520000 * 8% = $41600

intra entity expense and income table is attached below

from the table

iii) intra-entity interest expense = $39000 and the

iv) intra-entity interest income = $44200

v) investment in bonds

purchase price of bonds + annual amortization

= $499200 + $2600 = $501800

the book value on bonds as at 1st January 2011

=$1300000 * 105% = $1365000

Premium on bonds as at January 1st 2011

= $1365000 - $1300000 = $65000

amortization of premium as at January 1st 2011

=( ($65000) / 10 years ) * 2 years

= $13000

hence the controlling interest in bonds payable = $540800

vi) gains on retirement bonds

= $540800 - $499200 = $41600

attached below is the journal entry on 31st December 2013

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3 years ago

Why did government spending increase in the 1930s? (Business Cycles)

worty [1.4K]

Answer:

The government spent money to lift the economy out of the great depression

Explanation:

Depression is an extended period of economic downturn. It starts as a recession where the economy experiences declining growth. The GDP value decreases and turns. The economy remains in a subdued state for some years. Depression is associated with massive job losses, closure of businesses, reduced prices, low production, and reduced incomes.

To get the economy out of the economic depression, the government had to apply expansionary fiscal policies to stimulate economic growth and recovery. Increasing government spending is one way of stimulating growth. The government engages in capital intensive projects such as the construction of roads, schools, hospitals, and other public amenities. This creates jobs and demand for materials, resulting in higher GDP.

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3 years ago

High-pressure systems typically form over the atlantic ocean during the summer. if such systems did not form as often, _______ w

Degger [83]

The answer to this question is: <span> South Carolina; drier
</span> Circulation of surface wind and ocean water is run against clock direction in the Northern Hemisphere and the <span>Surface currents generally move outward from system's center
</span><span>This will reduce the air masses in the southern hemisphere and make that region become drier.</span>

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4 years ago

This level of relationship marketing seeks to build _______ bonds with customers. The firm keeps in touch with customers, finds

sertanlavr [38]

This level of relationship marketing seeks to build social bonds with customers.

<h3>What is marketing?</h3>

Marketing involves creating awareness about products offered by a company. It involves all activities, aimed at drawing the attention of potential customers to a product.

It is the process of getting people interested in a company's product or service.

Learn more about marketing here: brainly.com/question/6988222

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2 years ago