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3 years ago

Why is it important to understand that the amount cash paid for taxes is different than the amount of income tax expense?

1 answer:

6 0

Answer: To know the amount of tax the business should pay from reported profit which is different from it's actual tax bill

Explanation:

Income tax expense could be described as what is calculated that the company owes in taxes according to accounting rules. They are reported on the income statement.

While Income tax payable is described as the actual amount the company owes in taxes based on the rules of tax code. They appear on the balance sheet of the company accounting documents until the bills are cleared off or paid.

The reason for understanding the difference is to know the amount of tax the business should pay from reported profit which is different from it's actual tax bill

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A developer purchased three oceanfront lots, each measuring 75 by 110 feet, for $20 per square foot. The developer later sold th

AleksAgata [21]

Answer: 21%

Explanation: The developer purchased 3 properties and he can buy each property for $20 per square foot.

Therefore: 75 × 110 =8250 square feet.

8250 × $20 = $165 000 per lot.

Each lot was sold for $200 000. Which means the developer made profits of:

$200 000 - $165 000 = $35 000 per lot.

The percentage of profit on each lot is:

Percentage of profit on cost amount:

= $\frac{35 000}{165 000}$

= 0.2121212 recurring × 100

= 21,21%

Percentage of profit on sale amount:

= $\frac{35000}{200000}$

= 0.175 × 100

= 17,5%

3 0

3 years ago

Lusk company produces and sells 15,900 units of product a each month. the selling price of product a is $29 per unit, and variab

Shkiper50 [21]

<span>Decrease by $57,400 per month. Looks look at the cash flow for continuing to produce product a and discontinuing product a. Continuing to produce Income = 15900 * $29 = $461,100 Variable Expenses = 15900 * 23 = $365,700 Fixed overhead = $109,000 Total cash flow = $461,100 - $365,700 - $109,000 = -$13,600 So the Lusk company is losing $13,600 per month while producing product a. Let's see what happens if they stop producing it. Income = $0 Variable Expenses = $0 Fixed overhead = $71,000 Total cash flow = $0 - $71,000 = -$71,000 So if they stop producing it, their fixed overhead decreases, but is still at $71,000 per month, for a total loss per month of $71,000. The conclusion is to either lose $13,600 per month, or $71,000 per month. So if they stop production of product a, their loss per month will increase by $57,400.</span>

6 0

3 years ago

What does the cio in a company do

Mars2501 [29]

<span>Manage the technological areas of the company</span>

8 0

3 years ago

What was the earliest franchise of indoor cycling classes called?.

FinnZ [79.3K]

The earliest franchise of indoor cycling classes called Spinning

<h3>Spinning</h3>

Spinning is a brand of indoor bicycles and indoor cycling instruction classes distributed and licensed by the American health and fitness company Mad Dogg Athletics.

In conclusion, we can conclude that the correct answer is spinning.

learn more about spinning from here: brainly.com/question/339581

5 0

2 years ago

The balance sheet of ABC reports total assets of $400,000 and $450,000 at the beginning and end of the year, respectively. The r

zimovet [89]

Answer:

ABC net income for the year is $42,500

Explanation:

Beginning total assets = $400,000

Ending total assets = $450,000

Average total assets = Beginning total assets + Ending total assets ÷ 2

= ($400,000 + $450,000) ÷ 2

= $425,000

Return on assets = 10%

Therefore,

Net income ÷ Average total assets = Return on assets

Net income = Return on assets × Average total assets

Net income = 0.1 × Average total assets

= $425,000 × 0.1

= $42,500

7 0

3 years ago