Answer: $324,800
Explanation:
It is a general Principle that when calculating income tax expense, that the Extraordinary loss is treated separately because it is not a usual thing.
The income gained from changing the Accounting principle is not included as well.
The Taxable income to be recorded therefore is,
Taxable income = Income + Gain on disposal - Unusual loss (due to its infrequency)
Taxable income = 928,000 + 32,000 - 148,000
Taxable income = $812,000
Tax expense would therefore be,
= 812,000 * 40%
= $324,800
$324,800 is the amount of income tax expense Arreaga would report on its income statement.
Answer:
C- $3,400
Explanation:
The Karla Salons has leased equipment from Smith Co. in a finance lease. The Smith Co will record the interest receivable from the Karla Salons in its income statement. The Karla Salons will record lease obligations in its balance sheet. Under the new ASU, the interest revenue which Smith Co. will record in its income statement is $3,400 for the year 2016.
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Answer:
A) The issuance of bonds on December 31, 2016.
Dr Cash 104,031
Cr Bonds payable 96,000
Cr Premium on bonds payable 8,031
B) The first interest payment on June 30, 2017.
Dr Interest expense 3,517
Dr Premium on bonds payable 803
Cr Cash 4,320
C) The second interest payment on December 31, 2017.
Dr Interest expense 3,517
Dr Premium on bonds payable 803
Cr Cash 4,320
Answer:
$36
Explanation:
The contribution margin per unit is calculated by subtracting the variable cost per unit from the selling price.
Selling price is $60
Contribution margin per unit?
The total sales in dollar value are $15,000, The sales in units equal to
=$15,000 /60
=250 units
Total variable costs will include variable manufacturing cost plus variable selling and administrative costs
=$4000 + $2000
=$6000
variable cost per unit will be the total variable cost divide by units produced
=$6000/250
=$24
Contribution margin per unit = $60- $24
=$36
