1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
stiks02 [169]
2 years ago
6

Hopkins Co. at the end of 2022, its first year of operations, prepared a reconciliation between pretax financial income and taxa

ble income as follows:
Pretax financial income $750,000
Estimated litigation expense $1,000,000
Extra depreciation for taxes (1,500,000)
Taxable income $250,000

The estimated litigation expense of $1,000,000 will be deductible in 2023 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $500,000 in each of the next three years. The income tax rate is 30% for all years.

Required:
Make a journal entry to record the income taxes at the end of 2021.
Business
1 answer:
seropon [69]2 years ago
3 0

Answer:

I don't know

Explanation:

Hopkins Co. at the end of 2022, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows:

Pretax financial income $750,000

Estimated litigation expense $1,000,000

Extra depreciation for taxes (1,500,000)

Taxable income $250,000

The estimated litigation expense of $1,000,000 will be deductible in 2023 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $500,000 in each of the next three years. The income tax rate is 30% for all years.

Required:

Make a journal entry to record the income taxes at the end of 2021

You might be interested in
Atâ year-end, Snowâ, Inc. has cash of $ 15,000â, current accounts receivable of $ 30,000â, merchandise inventory of $ 40,200â, a
Eva8 [605]

Answer:

0.75 times

Explanation:

The formula and the calculation of acid test ratio is presented below

Acid test ratio = Quick assets ÷ total current liabilities  

where,  

Quick assets = Cash + current accounts receivable

= $15,000 + $30,000

= $45,000

And, the current liabilities is $60,000

So, the acid test ratio would be

= $45,000 ÷ $60,000

= 0.75 times

3 0
2 years ago
S. Lamar performed legal services for E. Garr. Due to a cash shortage, an agreement was reached whereby E. Garr. would pay S. La
Likurg_2 [28]

Answer:

The correct entries would as follows:

Dr Organization/legal fees(3000*$4.5)     $13,500

Cr Common stock($1*3000)                                    $3,000

Cr paid in capital in excess of par($4.5-$1)*3000)) $10,500

Explanation:

The total cost incurred has increased to $13,500 since the stock needs to be recorded at its fair value on the date of the agreement and the approximate fair value is the market price.

As a result,legal fees expenses is debited with $13,500 while the common stock account is credited with par value of $1 per share and the excess over par value of $3.5 is credited to paid in capital in excess of par.

6 0
3 years ago
What is the definition of business
tester [92]

Answer:

See below

Explanation:

Business refers to the practice of producing or purchasing goods and services for sale to make a profit. It is the act of engaging in commercial activities of buying and selling products and services for profits.

Business entails individuals and companies' activities of supplying desired products and services to customers with profit motives. A businessperson identifies a need in the community. He or she sells to the community goods or services that satisfy that need a higher price to make a profit.

7 0
3 years ago
The percent change in quantity demanded of a good divided by the percent change in income, all other things unchanged, is the __
Stella [2.4K]
The percent change in quantity demanded of a good divided by the percent change in income, all other tings unchanged, is the price elasticity of demand.  This is the equation you will use when finding the price elasticity of demand. Price elasticity of demand is measuring the demand of a product or service when nothing changes besides the price. 
4 0
3 years ago
Several years ago, Black & Decker purchased General Electric's small appliances product line. Black & Decker purchased t
TEA [102]

Answer:

The correct answer is b. Cash Cow.

Explanation:

Multinationals look beyond their core business for additional sources of income to increase their income statement. Secondary income is those from products or services that differ from the main ones within a business. And despite their name, they can play a leading role in a brand's strategy and can give a vital boost to a company's revenue.

4 0
2 years ago
Other questions:
  • Consider the following balance sheet for the Wahoo Bank. Use it to answer the two questions that follow. Use a required reserve
    11·1 answer
  • Gladstone Co. has expected sales of $360,000 for the upcoming month and its monthly break even sales are $342,500. What is the m
    6·1 answer
  • Suppose that the reserve requirement for checking deposits is 12.5 percent and that banks do not hold any excess reserves.
    8·1 answer
  • Which of the following is not true about credit cards
    13·1 answer
  • The application was built with regard to the number of files that can be sent and not built according to the size of each file.
    15·1 answer
  • the income effect of a price change refers to the impact of a change in a) income on the price of a good b) demand when the inco
    5·1 answer
  • A small company heats its building and spends ​$8 comma 000 per year on natural gas for this purpose. Cost increases of natural
    6·1 answer
  • Ross has decided that he wants to build enough retirement wealth that, if invested at 6 percent per year, will provide him with
    10·1 answer
  • You discovered you can deduct medical expenses over 6% of your income. Your income is $42,000, and you had medical expenses of $
    8·1 answer
  • Chow Publications Inc. is a publicly traded media company focused on products for the home chef market. The company publishes a
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!