Answer:
The amount of $2000 (loss on sale) would be added to the reported profit under the operating section of the statement of cash flow
Explanation:
<em>With the sale of an asset, the reported profit would have been increased or decreased by the amount of gains or losses realized on the sale of the equipment</em>
Gain/loss on sale = sales value - Carrying amount
Carrying amount = cost - accumulated deprecation
= $15,000 - $10,000
= $5,000
Loss on depreciation = 3,000 -5,000
= ($2000)
The amount of $2000 would be added to the reported profit under the operating section of the statement of cash flow
Answer: $150,000
Explanation:
Seeing as the litigation expense will only be paid in 2018, it should be added back to income for 2015.
= 900,000 + 100,000
= $1,000,000
As the depreciation will reverse evenly over the next three years and with future income probable, it should be removed from income.;
= 1,000,000 - 300,000
= $700,000
Municipal Bonds have the advantage of being Tax-exempt so their interest income should be removed to calculate how much tax should be paid.
= 700,000 - 200,000
= $500,000
2015 Income Tax Payable = 500,000 * 30%
= $150,000
Answer:
$15,200 favorable
Explanation:
The formula to compute the variable overhead efficiency variance is shown below:
= (Actual direct labor hours - standard direct labor hours) × variable overhead per hour
where,
Actual direct labor hours is 3,800 hours
And, the standard direct labor hours equal to
= 800 units × 3.5
= 2,800 hours
Standard variable overhead rate $ 15.20 per hour
Now put these values to the above formula
So, the value would equal to
= (3,800 hours - 2,800 hours) × $15.20
= $15,200 favorable
Investors use income statements to determine the profitability of a company over time. You can also look for trends in company spending and earnings because the statement breaks down individual revenue and expenses.
Hope it helps u..........!