Answer:Sherrod, Inc. reported pretax accounting income of 76 million for 2011. The following information relates to differences between pretax accounting income and taxable income:
a. Income from installment sales of properties included in pretax accounting income in 2011 exceeded that reported for tax purposes by 3 million. The installment receivable account at year-end had a balance of 4 million (representing portions of 2010 and 2011 installment sales), expected to be collected equally in 2012 and 2013.
b. Sherrod was assessed a penalty of 2 million by the Environmental Protection Agency for violation of a federal law in 2011. The fine is to be paid in equal amounts in 2011 and 2012.
c. Sherrod rents its operating facilities but owns one asset acquired in 2010 at a cost of 80 million. Depreciation is reported by the straight-line method assuming a four-year useful life. On the tax return, deductions for depreciation will be more than straight-line depreciation the first two years but less than straight- line depreciation the next two years ($ in millions).
Income Statement Tax Returns Differences
2010 $20 $26 $(16)
2011 20 35 (15)
2012 20 12 8
2013 20 7 13
$80 $80 $0
Explanation:
Answer:
The trough is the bottom of the recession period, unemployment is at its highest, inflation is low. ... expansion (recovery) is when output is increasing, unemployment begins to fall and later inflation begins to rise.
Answer:
$88,000
Explanation:
Computation of the total amount to be reported as intangible assets on its balance sheet
Using this formula
Total amount to be reported as intangible assets = Trademarks + Excess of cost over fair value of net assets of acquired subsidiary
Let plug in the formula
Total amount to be reported as intangible assets = $12,700 + $75,300
Total amount to be reported as intangible assets = $88,000
Therefore the total amount to be reported as intangible assets on its balance sheet bat year end will be $88,000
Answer:
Service products cannot generally be produced in advance or stored.
Services are typically variable, and in almost every service offering, the service cannot start until the customer arrives and actively participates.
Explanation:
Services have distinguishing characteristics that differentiate them from goods.
To start with, services cannot be produced in advance as production and consumption happen at the same time.
Also,the customer must be present and actively contributes to the delivery of the service, for instance, haircut cannot happen except the customer comes to the salon and obeys the instructions of the barber as they go along.
Besides,there is no physical substance in service unlike purchase of goods.
Answer:
The answer is: B) The reduction in economic surplus resulting from a market not being in competitive equilibrium.
Explanation:
Deadweight loss is an economic cost to society as a whole when market inefficiencies occur preventing it from reaching its equilibrium point. Market inefficiencies are caused by incorrect allocation of resources.
For example if a price ceiling is established, suppliers will tend to lower the quantity supplied while the quantity demanded either increases or stays the same. That economic deficiency resulting from an unsatisfied demand is what we call deadweight loss.
Other causes for deadweight loss are price floors (reduction of the quantity demanded) and taxation (shifts on the demand or supply curves).
