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3 years ago

The information below pertains to Basselier, Inc.:

Business

1 answer:

wel3 years ago

4 0

Answer and Explanation:

The journal entry to record the tax provision is given below:

Income tax expenses $48,840,000

Deferred tax assets ($10,900,000 ×0.40) $4,360,000

To Deferred tax liability (($15,900,000 + $1,900,000)×0.40) $7,120,000

To Income tax payable ($129,000,000 ×0.40) $51,600,000

(To record income tax expenses)

Here the income tax expense and deferred tax asset should be debited as it increased the asset and expenses and credited the liability & tax payable as it increased the liability

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When Patey Pontoons issued 10% bonds on January 1, 2021, with a face amount of $640,000, the market yield for bonds of similar r

IRINA_888 [86]

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

1) Semiannually Rate of interest = 11% ÷ 2 = 5.50% = 0.055

Number of years (half yearly) = 4 × 2 = 8 years

PVIF Value = 1 ÷ (1 + Interest Rate)^Number of years

=1 ÷ (1 + 0.055)^8

= 1 ÷ 1.5347

= 0.65160

PVIFA Value = [1 -1 ÷ (1 + Interest Rate)^Number of years ÷ Interest Rate

= [1 - 1 ÷ (1 + 0.055)^8] ÷ 0.055

= [1 - 0.65160] ÷ 0.055

= 6.33457

Particular PV table value Multiply Amount ($) PV value

Principle value 0.65160 × 640,000 $417,024

Annually interest Value 6.33 × 32,000 $202,706

($640,000 × 6 ÷ 12 × 10%)

Present Bond’s Price $619,730

2).

Journal Entry

On Jan.1,2021

Cash A/c Dr. $619,730

Discounts on bond payable A/c Dr. $20,270

To Bond payable A/c $640,000

(Being bond issued at discount is recorded)

3. The amortizable schedule is presented on the attachment below

4).

Journal Entry

June 30,2021

Interest expense A/c Dr. $34,085

To Cash A/c $32,000

To Discount on bond payable A/c $2,085

(Being interest expenses is recorded)

5) On December 31,2021 Amount of bonds reported = $624,015

6). Interest expenses reported in income statement

= $34,085 + $34,200

= $68,285

7).

Journal Entry

On Dec. 31,2024

Interest expense A/c Dr. $35,032

To Cash A/c $32,000

To Discount on bond payable A/c $3,032

(Being interest expense is recorded)

On Dec.31,2024

Bond payable A/c Dr. $640,000

To Cash A/c $640,000

(Being interest expense is recorded)

5 0

3 years ago

Brief Exercise 12-06Flint Corporation owns a patent that has a carrying amount of $290,000. Flint expects future net cash flows

Morgarella [4.7K]

Answer:

Debit Impairment loss account $50,000

Credit Intangible asset account $50,000

Being entries to recognize impairment loss on patent.

Explanation:

According to IAS 36, an asset is impaired when the carrying amount of the asset is more than the recoverable amount. The recoverable amount is the higher of the fair value and the future net cash flow from the assets.

Given;

Carrying amount = $290,000

Expected future net cash flows from this patent = $240,000

Fair value of the patent = $133,000

The recoverable amount = $240,000 (as this is higher than the fair value)

Impairment is the difference between the carrying amount and the recoverable amount.

Impairment = $290,000 - $240,000

= $50,000

Entries required

Debit Impairment loss account $50,000

Credit Intangible asset account $50,000

Being entries to recognize impairment loss on patent.

7 0

3 years ago

A goal of performance reporting in a lean accounting system is Select one: A. to show which producing departments are using appr

IrinaK [193]

Answer: B. to provide information to managers for constant improvement in cost efficiency and quality.

Explanation: Lean accounting is the collection of principles and processes that provide numerical feedback for manufacturers implementing lean manufacturing and lean inventory practices.

The purpose of Lean Accounting is to provide vital operational and financial information in a way that motivates lean transformation and improvement.

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3 years ago

Which one of these equations applies to a bond that currently has a market price that exceeds par value? C) Market value = Face

seropon [69]

Answer:

E) Yield to maturity < Coupon rate

Explanation:

As we all know that:

Bond's Yield = Coupon Payments / Market Price

If the market price has exceeded from the par value then the yield of bond will eventually fall from the previous level. In other words, as market value of bond is directly proportional to the coupon payments so we can say that the coupon rate increases the value of the bond.

Hence

Coupon rate > Yield to maturity (If the market value is above par value)

If we change the sign, we have:

Yield to maturity < Coupon rate (Which is the option E)

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3 years ago

Sasha could recall the brand of toothpaste she used only when a marketing researcher mentioned the brand. This is known as Multi

nekit [7.7K]

Sasha recalling the brand of toothpaste she used only when a marketing researcher mentioned the brand is known as aided recall.

Aided recall is a marketing strategy that help to create products awareness through advertisement.

Based on the information given Sasha was able to recall or remember the toothpaste with the help of the marketing researcher .

Mentioning the toothpaste brand help to facilitate Shasha memory thereby enabling her recall the toothpaste.

Inconclusion Sasha recalling the brand of toothpaste she used only when a marketing researcher mentioned the brand is known as aided recall.

Learn more about aided recall here:brainly.com/question/14949641

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2 years ago