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irga5000 [103]
3 years ago
14

Pocus, Inc., reports warranty expense when related products are sold. For tax purposes, the warranty costs are deductible as inc

urred. At the end of the current year, Pocus has a warranty liability of $180,000 and taxable income of $16,000,000. At the end of the previous year, Pocus reported a deferred tax asset of $76,000 related to the difference in reporting warranty expense, its only temporary difference. The enacted tax rate is 25% each year. Required: Prepare the appropriate journal entry for Pocus to record the income tax provision for the current year.
Business
1 answer:
bixtya [17]3 years ago
6 0

Answer and Explanation:

The appropriate journal entry to record the income tax provision is shown below;

Income tax expense $4,031,000

         To Deferred tax asset $31,000 ($76,000 - ($180,000 × $0.25)

        To Income tax payable ($16,000,000 × 0.25) $4,000,000

(Being income tax expense is recorded)

Here the income tax expense is debited as it increased the expense, credited the deferred tax asset as it decreased the asset and credited the income tax payable as it increased the liabilities

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Heather Hudson makes stuffed teddy bears. Recent information for her business follows: Selling price per bear $ 32.50 Total fixe
Neporo4naja [7]

Answer: 26.5% increase

Explanation:

Current profit = Sales - Variable costs - fixed costs

= ((32.50 - 16.50) * 360 bears) - 1,420

= $4,340

Sales increase by 20% = 360 * ( 1 + 20%) = 432 bears

New profit;

= ((32.50 - 16.50) * 432 bears) - 1,420

= $5,492

Effect of sales increase = ( 5,492 - 4,340) / 4,340

= 26.5% increase

8 0
3 years ago
4. Part of delivering an effective slide presentation is making sure you present your material in a logical order. Before you be
grandymaker [24]

Answer: Arranging them in an orderly manner, easy to understand by the audience and when presented

Explanation:

When arranging your slide for presentation, it's necessary that they are arranged in a logical manner, one of the things to have in mind is your objectives, when this is understood, you begin the arrangement of your presentation with your with table of contents, introduction, abstract, would be followed by the chapters, your conclusion and references, all tailored in an orderly manner driving your point home to your audience.

5 0
3 years ago
Commerce Corporation has a high probability of operating at 40,000 activity hours during the upcoming period, and lower probabil
Zepler [3.9K]

Answer:

Total cost= $877,500

Explanation:

<u> First, we need to calculate the unitary variable cost:</u>

Unitary variable cost= 135,000 / 30,000= $4.5

Unitary variable cost= 180,000 / 40,000= $4.5

Unitary variable cost= 225,000 / 50,000= $4.5

<u>Now, the total cost for 35,000 hours:</u>

Total cost= Unitary variable cost*total number of hours + fixed costs

Total cost= 4.5*35,000 + 720,000

Total cost= $877,500

4 0
2 years ago
In the for-profit business world, decisions to spend money must pass a "cost versus benefit" test, but for nonprofit arts organi
Zinaida [17]

The cost versus benefit test will not act as a good factor to measure tangible achievement.      

Explanation:

Most of the Non-profit organization has a focus on welfare activities. The benefits can be influenced only by the subjective fulfillment of benefits. Executive members of all trusts are not able to calculate the benefits attained through welfare operations. Such a parameter system of identifying the beneficiaries' prospects of end-users is known as Intangible achievement.

The tangible achievement always lies in the status of invisible movements of each welfare operations. But each step of inducing the effects of cost versus benefit test does not suit to provide the effective to identify the tangible achievements.  

3 0
3 years ago
UP Forklifts sells two products, large forklifts and small forklifts. A large forklift sells for $80,000 per unit with variable
Pepsi [2]

Answer:

The break-even point in total units is 70

Explanation:

Particulars                          Large Fork Lift        Small Fork Lift        Total

Selling price Per Unit              $80,000                  $60,000

Less: Variable Cost Per Unit $24,000                   $11,000  

Contribution per unit               $56,000                  $49,000

Sales Mix                                       1                                 4

Total Contribution per            $56,000                 $196,000    $252,000

sales mix  

Contribution per unit of sales mix ($252000/5)                         $50,400

Fixed Costs                                                                                    $3,528,000

Break-even point in total units ($3,528,000 / 50,400)                      70

6 0
3 years ago
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