Answer:
The advertising spend would reduce income taxes by $2.8 million
Explanation:
The advertising expense since it is allowable expense from profits made in the year would reduce income taxes next year by $2.8 million ($8 million *35%)
This means that because of its tax deductibility,it would make a business sense to incur the advertising cost of $8 million coupled with the fact the it has the potential to increase sales revenue over and above the current level of $280 million
Answer:
D) $0
Explanation:
Family loan of $100,000 or less, the amount of the imputed interest income is the lesser of the computed imputed interest
$75,000 × .05 = $3,750
or make use of Trey's net investment income of $940,However, since the net investment income $940 is less than $1,000, the imputed interest may be ignored; so, Chana will not include any amount as interest income as a result of this transaction.
Answer:
The correct answer is letter "D": Values may conflict with each other.
Explanation:
American psychologists Shalom H. Schwartz in his "<em>Theory of Basic Human Values</em>" proposes there are ten (10) values driving individuals' behaviors: s<em>timulation, self-direction, universalism, benevolence, power, achievement, hedonism, tradition, conformity, </em>and <em>security</em>.
<em>According to Schwartz, some values like benevolence and power conflict with each other but some others such as conformity and security are compatible.</em>
Answer and Explanation:
a. The computation of the earning per share is given below:
As we know that
Earning per share = (Net income - preference dividend) ÷ (average no of common shares oustanding)
For 20Y5
= ($1,508,000 - $60,000) ÷ 80,000 shares
= $18.1
For 20Y6
= ($2,676,000 - $60,000) ÷ 120,000 shares
= $21.8
b. Since the earning per share is increased from 20Y5 to 20Y6 so it is favorable
<u>Explanation:</u>
Payables control accounts helps to maintain each supplier account as a separate subsidiary ledger and reducing the amount of postings in the general ledger. Receivables control account is useful to maintain the credit sales through separate subsidiary ledger.
When there is a control account then the the trial balance of the firm can be easily prepared by seeing the general ledger.
Book keeping errors can also be identified by reconciling the balance on accounts payable and general ledger accounts.
