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MaRussiya [10]
2 years ago
9

In 2017, Kerry Corp's financial statement showed accrued losses on disposal of unused plant facilities of $3,600,000. The facili

ties were sold in December 2018 and a $3,600,000 loss was recognized for tax purposes then. Also in 2018, Kerry Corp's paid $150,000 for a two-year life insurance policy for their CEO Kerry, and the company was the beneficiary. Assuming that the enacted tax rate is 35% in both 2017 and 2018.
Question: the amount reported as net deferred income taxes on Kerry's balance sheet at December 31, 2017 should be an asset or liability?
Business
1 answer:
Margarita [4]2 years ago
8 0

Answer:

$1,260,000  Asset

Explanation:

The amount that Kerry Corp should report is as follows:

Amount to be reported = $3,600,000 * 35% = $1,260,000  asset.

Deferred tax arises because of temporary differences which results in future deductible amount. Future deductible amount leads to reduce taxable income and will provide future economic benefits of the company.

You might be interested in
Integrating management theories (Lead)
pantera1 [17]

Answer:

Identifying each Management Strategy with a Management Theory:

Management Strategies:                               Management Strategy

1. You measure sales over time and          4. Contingency Theory

realize that the months of July, August,

and September are particularly slow.

As a result, you ask two of your sales

clerks if they would be willing to work

part-time during those months.                    

2. You make sure that when you hire new  3. Management Science

people, you get input from each of the

existing team members. If they are happy

with the new hire, they are more likely to

make that person part of the team, and

the team will sell more.                                  

3. You notice that when customers have too    2. Humanistic

many choices, they are less likely to make            Management Theory

a decision about what to buy, so you tell all

of your employees to bring out only three

things at one time. In addition, you start to

pay your employees a commission for

every item that they sell.            

4. A customer survey shows that the men who    1. Classical Management

come into the store would prefer to be left alone    Theory

while they shop, but the women who come into

the store want to be asked if they need assistance.

You tell your employees to leave men alone  

and ask women if they want help.

Explanation:

Management Theories:

1. Classical Management Theory concentrates on specialization of labor, centralized leadership and decision-making, and profit maximization.

2. Humanistic Management Theory is a people-based management that seeks profits for human ends and not for the sake of profit as an end in itself.

3. Management Science concentrates on  problem solving and decision making in human organizations.

4. Contingency Theory is a situational management practice without set rules, but depends on the prevailing moment.

8 0
3 years ago
The following information is available for Quality Book Sales's sales on account and accounts receivable:
liberstina [14]

Answer:

Quality Book Sales

1) Uncollectible accounts expense for Year 2 = $890

2) Net realizable value of receivables at the end of Year 2 = $69,650

B) The reason why the uncollectible accounts expense amount is different from the amount that was written off as uncollectible is:

(2) Uncollectible accounts expense is the actual amount that was determined in the current accounting period to be uncollectible.

Explanation:

a) Data and Calculations:

Accounts Receivable Balance, January 1, Year 2 =  $78,500

Allowance for Doubtful Accounts, January 1, Year 2 = 4,710

Sales on Account, Year 2  = 550,000

Collections of Accounts Receivable, Year 2  = 556,000

Uncollectibles written off = $2,850

Allowance for Uncollectible accounts = 0.5% of Sales ($550,000 * 0.5%)

= $2,750

1) Uncollectible accounts expense for Year 2 = $890 ($2,850 + $2,750 - $4,710)

2) Net realizable value of receivables at the end of Year 2 = $69,650

B) The reason why the uncollectible accounts expense amount is different from the amount that was written off as uncollectible is:

(2) Uncollectible accounts expense is the actual amount that was determined in the current accounting period to be uncollectible.

Accounts Receivable Account

Account Titles                   Debit     Credit

Beginning balance           $78,500

Sales                                550,000

Cash                                              $556,000

Allowance for Uncollectibles              2,850

Ending balance                                 69,650

Allowance for Uncollectible Accounts

Account Titles                   Debit     Credit

Beginning balance                         $4,710

Accounts receivable      $2,850

Uncollectible Accounts Expense      890

Ending balance                2,750

8 0
2 years ago
When creating your résumé, you should
charle [14.2K]

Answer:

D

Explanation:

I cannot explain

8 0
3 years ago
Read 2 more answers
The December 31, 2009, balance sheet of Anna’s Tennis Shop, Inc., showed current assets of $2,584 and current liabilities of $1,
Igoryamba

Answer: ($203)

Explanation:

The company’s 2010 change in net working capital will be calculated thus:

Net working capital = current assets - current liabilities

For 2009, net working capital will be:

= $2,584 - $1,191

= $1393.

For 2010, net working capital will be:

= $2,644 - $1,048

= $1596

Change in net working capital will be:

= $1393 - $1596

= ($203)

6 0
3 years ago
Define ethics, and describe the role that it plays in discretionary decision making. Give an example.
Lerok [7]

Explanation:

Ethics can be defined as the study of the behaviors that guide human behavior, that is, society is developed through a set of moral behaviors that define its values ​​and its conception of which human behaviors and attitudes are positive or negative. Ethics then emerges as the standardization of these behaviors and moral values, it is a code of conduct for positive actions by man in society in all areas of life.

In discretionary decisions, in which there is a possibility of interpretation by the legislators, ethics appears as a normative instrument for the conduct of decisions, being a guide for the legislator to decide for what will have greater ethical value and benefits for society.

6 0
3 years ago
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