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padilas [110]
3 years ago
15

At December 31, 2017 Raymond Corporation reported a deferred tax liability of $240,000 which was attributable to a taxable tempo

rary difference of $800,000. The temporary difference is scheduled to reverse in 2021. During 2018, a new tax law increased the corporate tax rate from 30% to 40%. Raymond should record this change by debiting
A) Retained Earnings for $80,000.
B) Retained Earnings for $24,000.
C) Income Tax Expense for $24,000.
D) Income Tax Expense for $80,000.
Business
1 answer:
Oduvanchick [21]3 years ago
3 0

Answer:

D) Income Tax Expense for $80,000.

Explanation:

The computation is shown below:

Since the corporate tax rate is increased from 30% to 40% and the taxable temporary difference is of $800,000 so the change would be

= $800,0000 × difference in tax rate

= $800,000 × 10%

= $80,000

This amount i.e $80,000 would be debited and shown as an income tax expense

Moreover, the deferred tax liability is ignored

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The following transactions occur for the Hamilton Manufacturers.
Radda [10]

Answer:

The answer is stated below:

Explanation:

The accounting equation is as follows:

Assets = Liabilities + Stockholders' Equity

Analyzing the transactions:

1. The service is provided to customer on account, which result in increase in assets and the stockholders' equity

So,

Assets        =   Liabilities        +  Stockholders' equity

+ $4,000    = $0                     +  +$4,000

2. The equipment is purchased by signing a note, which result in increase in liability and also increase in the assets.

So,

Assets        =   Liabilities        +  Stockholders' equity

+ $10,500  =   +$10,500         + $0

3. Paid for the advertising, which result in decrease in cash as well as decrease in the equity of the company.

So,

Assets        =   Liabilities        +  Stockholders' equity

- $1,200    = $0                        +  -$1,200

7 0
3 years ago
Next, imagine that you are a manager of a start-up company with limited cash and resources. In your initial post, describe the t
marysya [2.9K]

Answer: I want employees who are like-minded with the values and best practices in my company .

Explanation: Having a candidate attraction strategy that speaks to your company culture will increase the likeliness of attracting and engaging talent who will thrive and stay with you longer.Hiring talent that doesn’t align with your company culture creates personal conflict within the employee that will no doubt impact their work and those they work with It’s your responsibility as an employer to set your employees up for success, and making sure their values and work ethic is in line with your culture before extending an offer is the very first thing you can do for them and the rest of your workforce.Company culture expresses what the organization’s expectations, values and beliefs are and how the organization interacts with both its own employees and the people in the communities in which they do business .

8 0
3 years ago
An increase in the demand for peanut butter could be caused by a(n)
Serggg [28]
I’d say D because its being demanded more of
8 0
3 years ago
it is possible for a hospitality operations at a profit during any given month but simultaneosly have insufficient cash flow dur
belka [17]

Answer:

True

Explanation:

Cash flow is a measure of the available cash and cash equivalent for operation in a business year.It has to be positive to generate value for investors and also to remain in business.

Profit is defined as the excess of income over expenses.

We need to know that profit are calculated on accrual basis, which means that income are recorded when earned and expenses recorded when incurred. In a situation where most sales are on account , i.e no instant cash payment and most expenses are on cash basis, this could cause a deficit in the cash flow volume. The level of inventory held could also lead to a negative cash flow despite a profitable operation if it is too high.

6 0
3 years ago
A first step when considering a career is to________.
Dafna1 [17]
The first step when considering a career is to assess yourself.
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3 years ago
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