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Vinil7 [7]
3 years ago
11

Ivanhoe Inc., in its first year of operations, has the following differences between the book basis and tax basis of its assets

and liabilities at the end of 2019.
Book Basis Tax Basis
Equipment (net) $431,000 $371,100
Estimated warranty liability $192,000$ -0-

It is estimated that the warranty liability will be settled in 2020. The difference in equipment (net) will result in taxable amounts of $19,100 in 2020, $30,600 in 2018, and $10,300 in 2019. The company has taxable income of $470,000 in 2018. As of the beginning of 2016, the enacted tax rate is 34% for 2018-2020, and 30% for 2019, Vaughn expects to report taxable income through 2019.

Required:
Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2018.
Business
1 answer:
Ostrovityanka [42]3 years ago
5 0

Answer:

Larkspur Inc.

Particulars                                     2018       2019      2019       Total  

Temporary difference giving    $30,600  $10,300  $19,100  

rise to future taxable amount

Enacted tax rate                            34%        30%        34%

Deferred tax liability                   $10,404  $3,090    $6,494   $19,988

Temporary diff. giving rise to    $192,000   $0           $0

future deductible amount

Deferred tax assets                    $65,280    $0           $0        $65,280

Journal Entries - Larkspur Inc.  

Income tax expense Dr $114,508

Deferred tax assets Dr $65,280

        To Income tax payable Cr. $159,800 ($470,000*34%)

        To Deferred tax liability Cr. $19,988

(To record income tax and deferred tax)

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Holding other factors constant, if bad weather destroys the annual crop for carrots, it causes the supply curve for carrots to
Iteru [2.4K]

Options:

<em>a. Shift to the left, causing the prices of carrots to rise</em>

<em>b. Shift to the left, causing the prices of carrots to fall</em>

<em>c. Stay the same</em>

<em>d. The supply curve does not shift. Only the demand curve shifts.</em>

<u>Answer:</u>

<u>a. Shift to the left, causing the prices of carrots to rise</u>

<u>Explanation:</u>

Indeed, going by the law of supply and holding all other factors constant, we would expect the supply curve to shift to the left, which implies that there would be an increase in the price of carrots.

What this means is that because there are now fewer carrots in the market as a result of the effects of the bad weather, there would be scarcity and so sellers would increase prices.

3 0
3 years ago
A stock is expected to pay the following dividends per share over the next four​ years, respectively: ​ $0.00, $2.30,​ 2.60, and
Snowcat [4.5K]

Answer:

present value of stoke combine equation is $82.43

Explanation:

Given data

no of period = 4

discount rate = 6% = 0.06

dividends = $0.00, $2.30,​ 2.60, and​ $2.90

to find out

current stoke price

solution

we know dividend is 0 for st year so present value for 1st year will be 0 .....1

now we calculate

present value 2nd year dividend is = 2.30 / (1+0.06)^2

present value 2nd year dividend is = $2.05   ............2

present value 3rd year dividend is = 2.60 / (1+0.06)^3

present value 3rd year dividend is = $2.18    ..............3

present value 4th year dividend is = 95.83 / (1+0.06)^4

present value 4th year dividend is = $75.91    ..............4

present value of stoke  combine equation 1 + 2 + 3 + 4

present value of stoke  combine equation = 2.05 + 2.18 + 2.30 + 75.91

present value of stoke combine equation is $82.43

3 0
3 years ago
On january 14, sheridan company purchased supplies of $420 on account. the entry to record the purchase will include:______.
devlian [24]

Entry to record the purchase will include <u>a debit to supplies and a credit to accounts payable</u>.

Accounts payable (AP) are amounts because of companies or providers for goods or services acquired that have not been paid for. The sum of all tremendous amounts owed to providers is shown as the money owed payable stability at the enterprise's stability sheet.

A debit will increase asset or fee debts and decreases legal responsibility, sales, or fairness debts. A credit is continually located at the proper aspect of access. It increases legal responsibility, revenue, or equity money owed and reduces asset or cost money owed.

Purchasing is the buying of goods or offerings. An item that has been bought is known as a purchase. the opposite of a purchase is a sale. In not unusual usage, the shorter word "purchase" is usually used whilst buying, instead of the phrase "buy".

Learn more about assets here brainly.com/question/25746199

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5 0
2 years ago
Max chose to operate his production studio as a sole proprietorship even though his attorney cautioned that he was:____________
sergij07 [2.7K]

Answer:

<u>c. exposing himself to unlimited personal liability.</u>

Explanation:

One major characteristic of sole proprietorship being the individual is sole recipient of profits and sole bearer of all risks and liabilities.

A sole proprietor bears unlimited liability in the sense that, in case of bankruptcy, the proprietor's personal assets can be taken away to repay debts owed by him.

Though a proprietor also remains the sole recipient of all gains, similarly the proprietor is also exposed to unlimited risk.

Thus, the correct option is, c. exposing himself to unlimited personal liability   .

8 0
3 years ago
Egan is very skilled at budgeting his money, he is very patient, he understands how to track his own financial records, and he k
pentagon [3]

Answer:

Business Finance Management

Explanation:

Business Finance Management is the best fit for this because of requires a lot of skill in planning and budgeting money.

3 0
3 years ago
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