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PSYCHO15rus [73]
3 years ago
12

Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid to satisfy warranties on its

product sales. For tax purposes, the expense is deducted when the warranty work is completed. At December 31, 2021, Lance has a warranty liability of $2 million and taxable income of $75 million. At December 31, 2020, Lance reported a deferred tax asset of $435,000 related to this difference in reporting warranties, its only temporary difference. The enacted tax rate is 25% each year.
Required:
Prepare the appropriate journal entry to record Lance.
Business
1 answer:
seropon [69]3 years ago
3 0

Answer:

Dr. Income Tax Expense $18,815,000

Cr. Deferred Tax Asset $65,000

Cr. Income Tax Payable $18,750,000

Explanation:

Preparation of appropriate journal entry to record Lance.

Dr. Income Tax Expense $18,815,000

($18,750,000+$65,000)

Cr. Deferred Tax Asset $65,000

[($2 million*25%)-435,000]

Cr. Income Tax Payable $18,750,000

($75,000,000*0.25)

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Marie is a small-business owner who loves to take risks. She also enjoys going out and meeting customers and potential clients—t
DerKrebs [107]

Answer:

Conceptual

Explanation:

Conceptual decision making is based on creative thinking and the leader is not afraid to take risks and take the visionary approach to solve his/her problems. In the given scenario, Marie is a risk taker and consider her alternatives taking into account the broader perspective and future possibilities. She is more achievement oriented than finding immediate short term solutions.

7 0
3 years ago
Makeria bought an investment for $300. Two years later she sold it for $360, what was her total ROI as a percentage?
SVEN [57.7K]

Answer:

20%

Explanation:

300÷360×100 =20%. hence 300×100=30000÷100=20%

7 0
2 years ago
The mean cost of a meal for two in a mid-range restaurant in Tokyo is $40 (Numbeo website, December 14, 2014). How do prices for
natali 33 [55]

Answer:

a. 2.13. b. (30.53, 34.79). c. The mean prices for two in mid-range restaurants in Hong Kong are relatively less than those in Tokyo restaurants.

Explanation:

The size of the sample is 42 and the mean of the sample is ∑x_{i}n = 32.66 and the standard deviation of the sample (σ) is √[∑(x_{i}-μ)^2 - 1] = √46.6092 = 6.8271

a. α = 1 - (95/100) = 0.05; α/2 = 0.025; the degree of freedom = n-1 = 42-1 = 41; tα/2 = t0.025 = 2.02. Thus, the error margin = (tα/2)*(σ/√n) = 2.02*(6.83/√42) = 2.1279

b. Lower level limit = 32.66 - 2.1279 = 30.5321; Upper level limit = 32.66+2.1279 = 34.7879. The interval estimate = (mean± margin of error) = (30.53, 34.79).

c. The mean prices for two in mid-range restaurants in Hong Kong are relatively less than those in Tokyo restaurants.

3 0
3 years ago
International organizations prefer to rely on Blank______ for measuring the value produced in an economy.
Ilia_Sergeevich [38]

Answer:

I thinks it's gross national income

Explanation:

I am guessing

3 0
2 years ago
The following events took place at a manufacturing company for the current year:(1) Purchased $95,000 in direct materials.(2) In
Rom4ik [11]

Answer:

D $88410

Explanation:

Work in progress includes all the raw materials, direct labour and conversion costs incurred so far excluding cost of goods sold .

WIP= Intial WIP +Manufacturing costs incurred- Cost of goods sold.

The WIP inventory at the begining of the period is given as nil.

WIP during the period = (95000*80%)+56000+13600+107000

=252600(but it was given that 65% of the Process was completedi.e., finished goodswhich are not the part of the WIP inventory ; hence the remaining 35% is the Work in process inventory)

=$ 88410.

Further the remaining raw material 20% = 95000*20% shall not comprise a part of the WIP as it has not been brought into process itself , it shall lie in raw materials inventory itself.It shall be counted into the WIP once it is brought into the manufacturing assembly line.

3 0
3 years ago
Read 2 more answers
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