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Kruka [31]
3 years ago
11

At the end of the year, Sheffield Co. has pretax financial income of $616,000. Included in the $616,000 is $78,400 interest inco

me on municipal bonds, $28,000 fine for dumping hazardous waste, and depreciation of $67,200. Depreciation for tax purposes is $50,400. Compute income taxes payable, assuming the tax rate is 30% for all periods.
Business
1 answer:
SVEN [57.7K]3 years ago
3 0

Answer:

$173,820

Explanation:

pretax financial income $616,000

- interest income on municipal bonds ($78,400)

+ depreciation ($67,200 - $50,400) = $16,800

+ fine for dumping hazardous materials $25,000

taxable income = $579,400

income taxes payable = $579,400 x 30% = $173,820

Fines are not tax deductible, and since depreciation for tax purposes is lower than accounting depreciation, you must add them. But since municipal bonds are not taxable, they must be subtracted.

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Publishers face the economy’s choices in products they want/need and on how the ways of selling it and where to sell it
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If Jenny spends $80 of her own money to make bracelets, and sells between 3-6 of them for $26 each, in either case, is Jenny get
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If she sells 3 she's not getting her money back
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7 0
3 years ago
Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provide
trasher [3.6K]

Answer:

Delph Company

a) Plantwide predetermined overhead rate = $17.68

b) The total manufacturing cost assigned to:

                                                  Job D-70     Job C-200

Direct materials cost              $ 699,000     $ 500,000

Direct labor cost                        400,000        340,000

Manufacturing overhead           720,789         582,811

Total manufacturing cost    $ 1,819,789   $ 1,422,811

c) Bid Prices:

                                                           Job D-70        Job C-200

150% of total manufacturing cost  $2,729,683.50  $2,134,216.50

d) Cost of goods sold:

Job D-70           $ 1,819,789

Job C-200          $ 1,422,811

Total                 $3,242,600

Explanation:

a) Data and Calculations:

                                                                 Molding     Fabrication     Total

Machine-hours                                          23,000        33,000        56,000

Fixed manufacturing overhead costs $790,000   $200,000    $990,000

Variable overhead cost per machine-hour $5.60       $5.60

                                                                 Molding     Fabrication     Total

Job D-70

Direct materials cost                           $ 371,000  $ 328,000   $ 699,000

Direct labor cost                                $ 240,000   $ 160,000   $ 400,000

Machine-hours                                         16,000          7,000        23,000

Job C-200

Direct materials cost                       $ 290,000    $ 210,000  $ 500,000

Direct labor cost                              $ 100,000    $ 240,000  $ 340,000

Machine-hours                                       7,000          26,000       33,000

Plantwide predetermined overhead rate based on machine-hours:

= $990,000/56,000

= $17.68

Manufacturing overhead costs:

                                                                 Molding     Fabrication     Total

Fixed manufacturing overhead costs $790,000   $200,000     $990,000

Variable manufacturing overhead         128,800       184,800        313,600

Total manufacturing overhead costs  $918,800    $384,800  $1,303,600

Overhead rate

Molding = $39.9478 ($918,800/23,000)

Fabrication = $11.6606  ($384,800/33,000)

Assignment of manufacturing overhead:

                      Job D-70     Job C-200

Molding       $639,165        $279,635

Fabrication      81,624            303,176

Total           $720,789          $582,811    

3 0
3 years ago
Mouse Inc. received a $2,500 prepayment of rent from one of its tenants and immediately credited the Rent revenue account. By th
marusya05 [52]

Answer:

Debit Rent revenue   $500

Credit Unearned rent account  $500

Being entries to recognize revenue yet to be earned as at the end of the period.

Explanation:

For Cash collected in advance, we post a debit in cash account and a credit to Unearned Rent Revenue.

To recognized revenue when it is earned from rent, the entries required are credit Rent revenue and debit Unearned Rent Revenue with the amount earned.

However, in this instance, when cash was collected in advance, the entries posted were

Debit Cash account $2,500

Credit Rent revenue account  $2,500

The amount posted to rent revenue should have been posted to the Unearned or deferred revenue account.

If that the end of the period, $500 had not been earned, we would defer this amount by posting the following entries

Debit Rent revenue   $500

Credit Unearned rent account  $500

Being entries to recognize revenue yet to be earned

8 0
3 years ago
Which function of money describes its ability to enable trade between
aliina [53]

Answer:

D. Medium of exchange

Explanation:

A medium of exchange is any physical object used as a measure of value to facilitate the transfer of goods and services between sellers and buyers. A medium of exchange acts as a go-between in transactions. In modern trade, money is the most widely accepted medium of exchange.

Today, goods and services are given a monetary value. Trade becomes relatively easy as buyers and sellers know how much money is needed to complete a transaction.

3 0
3 years ago
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