Answer:
$40,000
Explanation:
Given that,
EBIT = $538,000
Interest expense = $63,000
Net income = $435,000
EBT = EBIT - Interest expense
= $538,000 - $63,000
= $475,000
Tax reported in Income statement:
= EBT - Net income
= $475,000 - $435,000
= $40,000
Therefore, the 2018 taxes reported on the income statement is $40,000.
Answer:
d. $42,000
Explanation:
Calculation for what was the estate's distributable net income (DNI)
ESTATE'S DISTRIBUTED NET INCOME
GROSS INCOME:
Taxable interest $65,000
ESTATE DISBURSEMENTS:
Less Administrative expenses ($14,000)
Less Charitable contributions from gross income ($9,000)
DISTRIBUTED NET INCOME (DNI) $42,000
($65,000-$14,000-$9,000)
Therefore the estate's distributable net income (DNI) will be $42,000
Answer:
a. $22,500
Explanation:
The computation of the depreciation expense using the straight line method is shown below:
= (Original cost - salvage value) ÷ (useful life)
= ($750,000 - $75,000) ÷ (10 years)
= ($675,000) ÷ (10 years)
= $67,500
In this method, the depreciation is same for all the rest of the useful life
Now for 4 months, it would be
= $67,500 × 4 months ÷ 12 months
= $22,500
The four months is calculated from January 1 to May 1
Answer: Pioneering advertising
Explanation: Pioneering advertising refers to the advertising of a product or service, the concept of which is fresh and none of such products had been to any market before. This kind of advertising is done for establishing a new market.
In the given case, the company wants to aware the dog lovers to know about the patio which is a new concept to the world.
Hence the correct option is E.