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Dahasolnce [82]
3 years ago
14

The Talley Corporation had taxable operating income of $455,000 (i.e., earnings from operating revenues minus all operating cost

s). Talley also had (1) interest charges of $70,000, (2) dividends received of $5,000, and (3) dividends paid of $10,000. Its federal tax rate was 21% (ignore any possible state corporate taxes). Recall that 50% of dividends received are tax exempt.
Required:
a. What is the firm’s taxable income?
b. What is the tax expense?
Business
1 answer:
guapka [62]3 years ago
4 0

Answer:

a. What is the firm’s taxable income?

387.500

b. What is the tax expense?

81.375

Explanation:

You first need to determine Talley's taxable income:

Income after operating costs: $455,000

Less: Interest Expense             -$70,000

Plus: Taxable Dividends Received 2,500

                               .

Taxable Income:                         387.500

Federal tax rate                21%      

Tax expense                                    81.375

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3 years ago
Kenneth Corporation expects to incur indirect overhead costs of $166,400 per month and direct manufacturing costs of $22 per uni
Eva8 [605]

Explanation:

The computation is shown below:

1.  For Predetermined overhead rate

Predetermined overhead rate = (Total estimated manufacturing overhead for 4 months) ÷ (Total number of units)

where,

Total estimated direct manufacturing cost is

= $166,400 × 4 months

= $665,600

And, the total number of units is

= 4,700 units + 8,700 units + 4,300 units + 7,900 units

= 25,600 units

So, the predetermined overhead rate is

= $665,600 ÷ 25,600 units

= $26 per unit

2. Now the allocated cost for each month is shown below:

For January

= 4,700 units × $26

= $122,200

For February

= 8,700 units × $26

= $226,200

For March

= 4,300 units × $26

= $111,800

For April

= 7,900 units × $26

= $205,400

c. Now the total cost per unit is

= $22 + $26

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5 0
3 years ago
The value of what businesses provide to other businesses is captured in the final products at the end of the __________ chain. s
Ira Lisetskai [31]
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Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data
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Answer:

a.$7.43 per machine hour

Explanation:

The computation of the single plant wide rate is shown below:

Single plant wide rate = Total overhead cost ÷ Machine hours

where,

Total overhead cost = $84,000 + $72,000 = $156,000

And, the machine hours is

= 1,000 units × 5 + 2,000 units × 8

= 5,000 + 16,000

= 21,000 machine hours

So, the single plant wide rate is

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4 0
3 years ago
Lantz Company has provided the following information: • Cash sales totaled $255,000. • Credit sales totaled $479,000. • Cash col
NNADVOKAT [17]

Answer:

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Explanation:

The computation of the operating revenue is shown below:

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