Answer:
Income tax payable 2018 = $43 x 40% = $17.2 million
deferred tax liability = temporary difference x change in income taxes = $33 million x (40% - 30%) = $3.3 million
income tax expense = income tax payable - deferred tax liability = $17.2 million - $3.3 million = $13.9 million
a. Determine the effect of the change and prepare the appropriate journal entry to record Bronson's income tax expense in 2016.
- Dr Income tax expense 13,900,000
- Dr Deferred tax liability 3,300,000
- Cr Income tax payable 17,200,000
b. What adjustment, if any, is needed to revise retained earnings as a result of the change?
- Deferred tax assets and liabilities affect the current retained earnings, but no adjusting entry is needed.
- Deferred tax assets and liabilities result in differences between US GAAP rules and the rules that the accounting rules used by the IRS (e.g. expensing asset purchases). Generally the greatest effects of deferred tax assets and liabilities are seen in the cash flow statements, not retained earnings.
Answer:
A new breakeven point will be determined.
Explanation:
The law of supply and demand suggests that price and quantity equilibrium are determined by the interaction between supply and demand. This breakeven point may vary as supply and demand change. When supply increases the price decreases and when the price decreases the demanded quantity increases. In this way, a new equilibrium price will be determined at a lower value than the previous price.
D -it's trying to get you to call so it's a call to action
It might be product market
Answer:
The correct answer is Option B.
Explanation:
Stockholders' equity comprises retained earnings, common stock and premium on common stock. Retained earnings are an accumulation of net income or loss over years. The effects of the transactions in Year 1 are as follows:
1) Acquired $1,050 cash from the issue of common stock - increase common stock and cash by $1,050
2) Borrowed $520 from a bank - this increases Cash and Liabilities by $520 - nil effect on stockholders' equity
3) Earned $750 of revenues - this increases net income/Retained Earnings by $750
4) Paid expenses of $270 - reduction in net income/Retained Earnings by $270
5) Paid a $70 dividend - reduces Retained Earnings by $70
Overall, stockholders' equity = $1,050 + $750 - $270 - $70 = $1,460