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Olenka [21]
3 years ago
12

in 2020, Mathis Co. at the first year of operations, has financial income of $1,200,000. It has an litigation expense of $3,000,

000, and installment sales of $2,4000,000. The estimated litigation expense of $3,000,000 will be deductible in 2022 when it is expected to be paid. The installment sales will be realized in the amount of $1,200,000 in each of the next two years. The income tax rate is 20% for all years. what is tax payable for 2020
Business
1 answer:
Ronch [10]3 years ago
5 0

Answer:

Mathis Co.

The Tax payable for 2020 is:

= $1,320,000

Explanation:

a) Data and Calculations:

2020 Financial income =   $1,200,000

add Litigation expense       3,000,000

add installment sales          2,400,000

Adjusted taxable income $6,600,000

Income tax rate = 20%

Tax payable for 2020 = $1,320,000

b) The litigation expense was deducted from the financial income.  This is added back to the income.  Installment sales were not included in the revenue for the financial income of 2020.  This is also added to the financial income.  The net result is the figure for taxable income.  This forms the basis for the application of the income tax rate of 20%.

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Wolverine, Inc. began operations on January 1 of the current year with a $12,400 cash balance. 45% of sales are collected in the
steposvetlana [31]

Answer:

$7,700 increase

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We can determine the change in Wolverine's cash balance by deducting the cash disbursement and operating expenses from the cash receipts.\

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Change in cash balance = $48,000 - $33,800 -$6,500

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WORKING:

<u>Cash Receipts</u>

Sales

February ( 59,000 x 45%)            $26,550

January ( 39,000 x 55%)              $21,450  

Total                                               $48,000

<u>Cash disbursement</u>

Purchases

February ( 44,000 x 15%)            $6,600

January ( 32,000 x 85%)             $27,200  

Total                                              $33,800

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Incurred                                        $9,400

Depreciation                                ($2,900)

Net                                                 $6,500

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Pham can work as many or as few hours as she wants at the college bookstore for $9 per hour. But due to her hectic schedule, she
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Answer:

The correct answer is "she should work 16 hours per week at daycare center to earn $136.00"

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