Answer:
Income tax expense of $14 million should report in the income statement
Explanation:
Southeast Airline should report the income on the basis of their earning in the year.
Earning Before Tax = $30 Million
Tax on Earning Before Tax = $30 Million x 40% = $12 million
Gain on disposal = $5 million
Tax on Gain on disposal = $5 million x 40% = 2 million
Total Income tax = $12 million + $2 million = $14 million
Another way
Total Income tax = ( $30 million + $5 million ) x 40% = $14 million
Answer: 1st to make a good business you have to start off small. For starters start doing a Lemonade Stand. If people like your Lemonade i'm sure they'll promote you by telling there friends. Then your business will get bigger and bigger until you have like a whole company.
Answer: e. repurchase shares
Explanation:
If the personal tax rates are lower than corporate tax rates then the company should engage in an activity that would put money into the pockets of shareholders such that they would take advantage of the lower personal tax rates.
The best way to do that would be a share repurchase. The company would probably buy at above market rates which would give shareholders capital gain and they wouldn't have to pay much taxes on it as personal rates are lower.
