Dividing tasks among the most well-trained employees is called *

Indigo Corporation had the following tax information.

Andrei [34K]

Answer:

Explanation:

Given that:

Indigo Corporation had the following tax information.

Year Taxable Income Tax Rate Taxes Paid

2015 $294,000 35% $102,900

2016 332,000 30% 99,600

2017 399,000 30% 119,700

In 2018, Indigo suffered a net operating loss of $487,000, which it elected to carry back. The 2018 enacted tax rate is 26%.

The objective is to prepare the Indigo's entry to record the effect of the loss carryback.

The Income Tax Refund Receivable = Taxable income(2018) × Tax rate(2018) + ( net operating loss - Taxable income(2018) ) × Tax rate(2018)

(332000 × 30%)+(476000-332000) × 30%

The Income Tax Refund Receivable = (332000 × 0.30)+(476000-332000) × 0.30

The Income Tax Refund Receivable = 99600 + 144000× 0.30

The Income Tax Refund Receivable = 99600 + 43200

The Income Tax Refund Receivable = 142800

Therefore, Indigo Corporation ENtry can be prepared as follows:

Account titles Debit Credit

Income Tax Refund Receivable 142800

Benefit Due to Loss Carryback 142800

To record the effect of the loss carryback

8 0

3 years ago

Kingery Corporation began the calendar (and ﬁscal) year with a simple structure consisting of 38,000 shares of common stock outs

Lunna [17]

Answer:

a. EPS = $4.78 per share

b. Basic EPS = $4.41 per share

Explanation:

a. Compute the earnings per share (EPS) of common stock

Number of shares outstanding = 38,000 + 10,000 + 1,000 = 49,000

EPS = Net income ÷ Number of common shares outstanding = $234,000 ÷ 49,000 = $4.78 per share

b. Compute the basic earnings per share of common stock

Preferred dividend = 6,000 × $50 × 6% = $18,000

Basic EPS = (Net income - Preferred dividend) ÷ Number of common shares outstanding = ($234,000 - $18,000) ÷ 49,000 = $4.41 per share

6 0

4 years ago

In recording business transactions, evidence that an accounting transaction has taken place is obtained from

hram777 [196]

In recording business transactions, evidence that an accounting transaction has taken place is obtained from source documents. A source document is the first and origional way that transactions are entered for an accounting system. Everything in the source documents then gets transferred into a companies accounting system and stored for later use. The first and original documents are the source documents because they are the source of where the first transactions were recorded.

6 0

3 years ago

Accompanying a bank statement for Borden Company is a credit memo for $21,200 representing the principal ($20,000) and interest

Wittaler [7]

Answer:

The journal entry to record this note collection carried out by the bank should be:

Dr Cash 21,200

Cr Notes receivable 20,000

Cr Interest revenue 1,200

Explanation:

Notes receivable is an asset account and it probably represented a sale made on credit by the company, so when it was collected, the amount should decrease and that is done by crediting it.

On the other hand, since only $20,000 belonged to the note, the rest ($1,200) must be recorded as interest revenue. Revenues are always credited.

4 0

3 years ago

What is it called when a producer is unable to meet the demand of a certain product?

Andreyy89

It's called a shortage

4 0

3 years ago