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natima [27]
2 years ago
12

Harvey Hotels has provided a defined benefit pension plan for its employees for several years. At the end of the most recent yea

r, the following information was available with regard to the plan: service cost: $6.4 million, expected return on plan assets: $1.4 million, actual return on plan assets: $1.2 million, interest cost: $1.6 million, payments to retired employees: $2.2 million, and amortization of prior service cost (created when the pension plan was amended causing a drop in the projected benefit obligation): $1.3 million. What amount should Harvey Hotels report as pension expense in its income statement for the year
Business
1 answer:
exis [7]2 years ago
4 0

Answer:

$7.9 million

Explanation:

Calculation to determine What amount should Harvey Hotels report as pension expense in its income statement for the year

Service cost $6.4 million

Interest cost $1.6million

Expected return on plan assets($1.4million)

Amortization of prior service cost $1.3million

Pension expense $7.9million

Therefore The amount that Harvey Hotels Should report as pension expense in its income statement for the year is $7.9million

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Sheridan Company sells merchandise on account for $6400 to Carla Vista Company with credit terms of 2/10, n/30. Block Company re
Aliun [14]

Answer: $4,508

Explanation:

Companies usually give discounts with credit terms to encourage Receivables to pay faster.

In this scenario, credit terms of 2/10, n/30 were offered which means that if Carla Vista Company pays within 10 days they get a discount of 2% but if they don't they should pay the full amount in 30 days.

They paid within the discount period meaning that they qualify for the discount of 2% but they however returned goods worth $1800.

So calculating for that would be,

= (6,400 - 1800) (1 - 0.02)

= $4,508

The amount of the check is $4,508

8 0
3 years ago
Read 2 more answers
The federal minimum wage law requires that most workers be paid at least $5.15 per hour. a governor of a small industrial state,
Art [367]
Age discrimination. .
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3 years ago
Sales tax is this type of tax because it represents a higher percentage of the income of lower income earners.
HACTEHA [7]
Answer is A. regressive tax
3 0
2 years ago
In the current year, Tanager Corporation (a calendar year C corporation) had operating income of $480,000 and operating expenses
alekssr [168]

Answer:

(a) Tanager Corporation taxable income is $9,000 and its tax for the year is $1,890.

(b) Tanager Corporation taxable income is still $9,000 and its tax for the year is still $1,890.

Explanation:

(a) Compute Tanager’s taxable income and tax for the year.

Step 1: Calculation of tax ordinary taxable income

Ordinary taxable income = Operating income - Operating expenses

                                          = $480,000 - $390,000

Ordinary taxable income = $9,000

The US Corporate tax rate is presently 21%. This is applied to the ordinary taxable income as follows:

Ordinary income tax = Ordinary taxable income × Corporate tax rate

                                  = $9,000 × 21%

Ordinary income tax = $1,890  

Step 1: Calculation of capital gain tax

In the US, capital loss from the short or long term capital is deductible to the extent of the available other capital gains either short or long term capital gains but cannot be deducted from ordinary income for the period. Therefore, tax on taxable capital gains is calculated as follows:

Taxable capital gains = long-term capital gain - short-term capital loss

                                     = $55,000 - $40,000

Taxable capital gains = $15,000

Since the capital gain falls between $0 and $39,375, Tanager Corporation will pay zero tax on taxable capital gains of $15,000.

Therefore, Tanager Corporation taxable income is $9,000 and its tax for the year is $1,890.

(b) Assume the same facts except that Tanager's long-term capital gain was  $15,000. Compute Tanager’s taxable income and tax for the year.

Since only Tanager's long-term capital gain of  $15,000 was different, we recompute the capital gain/loss and capital gain tax as follows:

Taxable capital gains/loss = long-term capital gain - short-term capital loss

                                     = $15,000 - $40,000

Capital loss = - $25,000

Since Tanager is a corporation, it is not allowed to deduct excess capital loss of $25,000 from the ordinary taxable income.

Therefore, Tanager Corporation taxable income is still $9,000 and its tax for the year is still $1,890.

4 0
3 years ago
Which of the following statements is true in relation to externalities I. property rights and low negotiation costs will allow t
erma4kov [3.2K]

Explanation:

costs will allow the private market system to operate at socially optimum level. II. government regulations limit activities with negative externalities III. taxes are placed on activities that have negative externalities

3 0
3 years ago
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