Division of labor and specialization

Correll Corporation is considering a capital budgeting project that would require investing $264,000 in equipment with an expect

lapo4ka [179]

Answer:

Income Tax Expense in Year 2 = 32400 USD

Explanation:

The income tax expense can be calculated from the following given data:

First of all we need to find the incremental revenue:

Incremental Revenue = Incremental Sales - Incremental expenses

Incremental Sales = 630,000 USD

Incremental expenses = 456,000 USD

So, plug in the values:

Incremental Revenue = 630,000 USD - 456,000 USD

Incremental Revenue = 174000 USD

Now, we need to find the less annual depreciation:

Less Annual Depreciation = Investment/ Expected Life

Investment = 264,000 USD

Expected Life = 4 years

Less Annual Depreciation = 264,000/4

Less Annual Depreciation = 66000 USD

Now, the next step is to calculate the operating incremental income:

Operating incremental income = Incremental Revenue - Less Annual Depreciation

Incremental revenue = 174000 USD

Less Annual Depreciation = 66000 USD

Operating incremental income = 174000 USD - 66000 USD

Operating incremental income = 108000 USD

30% tax at the operating incremental income is the income tax expense in year 2.

Income Tax Expense in Year 2 = 108000 x 30%

Income Tax Expense in Year 2 = 32400 USD

6 0

3 years ago

The differences between the various 'Money Supplies' (M1, M2, …) are base on A) The volume of the economy they make up C) Whethe

postnew [5]

Answer:

The correct option here is B) the degree of liquidity in each element.

Explanation:

Money supply can be described as total amount of money , which is present in an economy at a point of time.

Money supply can be classified as M0,M1,M2 etc , where these different money supply's reflects different type of liquidity that each type of money has in the economy. M0, M1 actually consists of narrow money and contain coins and notes, which are in circulation in the economy and these are easily convertible in to cash and they are most liquid elements and same way M2 would be less liquid than M1, and so on.

8 0

4 years ago

The new york stock exchange, where financial investors buy and sell existing stock, is an example of _______.

storchak [24]

The new york stock exchange, where financial investors buy and sell existing stock, is an example of the secondary market.

A market is a composition of structures, institutions, approaches, social family members or infrastructures whereby parties interact in trade. at the same time as events can also alternate goods and offerings by way of barter, most markets depend upon dealers imparting their goods or offerings to shoppers in exchange for money.

A marketplace is an area wherein consumers and sellers can meet to facilitate the alternate or transaction of goods and offerings. Markets may be bodily like a retail outlet, or virtual like an e-store. other examples include illegal markets, public sale markets, and financial markets.

Learn more about market here:brainly.com/question/25754149
#SPJ4

8 0

2 years ago

You are a member of Congress and your aide reports that unemployment continues to rise. You are due to report to the floor to vo

kvv77 [185]

Answer:

a) increase spending on grants for small businesses.

Explanation:

Government spending which is an expansionary fiscal policy will stimulate the supply side of the economy and by extension create more jobs.

When government spending is targeted at small businesses which is the engine of growth, it will in no small measure generate more activities in goods produced by the small businesses thereby reducing unemployment.

7 0

3 years ago

During 2019 the Barker Company had a net income of $75,000. Below is information taken from Barker’s last two balance sheets: 20

Kitty [74]

Answer:

cash provided by operating activities 84,000

Explanation:

net income 75,000

Adjustment (A)

gain on land (500)

depreciation 1,500

Adjusted net income 76,000

Change in working capital

↑account receivable (3,000) (B)

↓long term AR 10,000 (C)

↑Account payable 1,000 (D)

Net changes 8,000

cash provided by operating activities 84,000

<u>Notes:</u>

(A)

The net income may have non-monetary term, we need to remove those to get and adjusted net income on a cash basis

the gain on land is not a monetary term. We will record the proceeds in cash for the sale under investment activities, not operating as the business is not selling land every year.

depreciation is an accounting metric, is not an actual expense, it doesn't involve cash.

(B)

the increasein the Ar means more sales were not collected therefore, less cash collected.

(C)

the decrease in the long term AR represent the collection, so it increases the cash

(D)

the increase in account payable represent the delay of payment, so company has more cash available.

7 0

3 years ago