1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
tresset_1 [31]
3 years ago
11

On December 31, 2015, Howells, Inc. appropriately changed its inventory valuation method to FIFO cost from weighted-average cost

for financial statement and income tax purposes. The change will result in a $2,000,000 increase in the beginning inventory at January 1, 2015. Assume a 30% income tax rate. The cumulative effect of this accounting change on beginning retained earnings is Group of answer choices $0. $1,400,000. $1,750,000. $2,500,000.
Business
1 answer:
il63 [147K]3 years ago
5 0

Answer:

$1,400,000

Explanation:

According to the scenario, computation of the given data are as follows,

Increase in beginning inventory = $2,000,000

Income tax rate = 30%

So, we can calculate the effect on beginning retained earning by using following formula,

Cumulative effect = Increase beginning inventory × (1 -  tax rate)

= $2,000,000 × ( 1 - 30%)

= $2,000,000 × 70%

= $1,400,000

You might be interested in
A. A plan for mass casualty incidents should include protective actions to reduce vulnerabilities, response actions to minimize
DedPeter [7]

Answer: When an organization is planning for mass casualty incidents, an effective approach is to request law enforcement personnel to develop a separate plan for mass casualty incidents for the organization

Explanation:

A Mass Casualty Incident refers to an overwhelming event, which leads to more patients at a time than what the available resources can easily manage such that it requires additional assistance.

A plan for mass casualty incidents should include protective actions that will be used to reduce vulnerabilities, response actions to minimize negative consequences, and post incident actions to promote community recovery.

A partnership approach to planning for mass casualty incidents is important as it helps in ensuring that the plans for your organization are compatible with those of the agencies that would respond if an incident occurred.

It's also vital to customize your emergency plan to reflect the risks, realities, and resources that characterize the local area and your own organization.

The false statement is "When an organization is planning for mass casualty incidents, an effective approach is to request law enforcement personnel to develop a separate plan for mass casualty incidents for the organization". This isn't true.

5 0
3 years ago
Bryant Co. has $2.7 million of debt, $1 million of preferred stock, and $2.1 million of common equity. What would be its weight
Lelu [443]

Answer:

0.172

Explanation:

The computation of the weight on the preferred stock is shown below:

Weight on preferred stock is

= Preferred stock ÷(Debt + preferred stock + common equity)

= $1 million ÷ ($2.7 million + $1 million + $2.1 million)

= $1 million ÷ $5.8 million

= 0.172

By applying the above formula we can easily determine the weight on preferred stock

6 0
3 years ago
Okie help help buissness help help
sergejj [24]

Answer:

B

Explanation:

LRAS can do both

5 0
3 years ago
The table shows the utility that jason receives from dvds and spy novels. when jason is maximizing his total utility he spends a
Xelga [282]
<span>The answer is to equalizes the marginal utility per dollar for all goods. Marginal utility is the additional satisfaction a consumer gains from consuming one more unit of a good or service.</span>
3 0
4 years ago
Merv is a bulldozer operator. He was hired by Carla to fill in a swampland on her property and they signed a contract for him to
alina1380 [7]

If Merv calls Carla telling her the deal is off and Carla threatens to sue for breach of contract, the result is:

  • The contrails void, Carla loses

<h3>What is a Contract? </h3>

This refers to the legally binding agreement between two or more people about a particular request or work.

With this in mind, we can see that because Merv is hired by Carla to fill a swampland and he is later informed that the land is in protected wetlands, this makes the contract void and Carla loses because it is not of the doing of Merv.

Read more about contractual agreements here:

brainly.com/question/5746834

6 0
2 years ago
Other questions:
  • Ignoring any related tax implications, what is the effect on a company's balance sheet when depreciation expense is recognized?
    6·1 answer
  • The Woods Co. and the Mickelson Co. have both announced IPOs at $56 per share. One of these is undervalued by $8, and the other
    10·1 answer
  • What do you expect the level of implied demand uncertainty to be for jasmine rice produced by Thailand at a supermarket? Explain
    5·1 answer
  • Using the year-end information for each of the following six separate companies ($ thousands):
    13·1 answer
  • Pls help ASAP!!!
    13·2 answers
  • Every motor vehicle registered in a foreign jurisdiction and every motorcycle registered in this state must be equipped with a m
    9·1 answer
  • Determine which market model best describes the scenario:
    10·1 answer
  • When firms are faced with making strategic choices to maximize profit, economists typically use a. the theory of monopoly to mod
    14·1 answer
  • What is the Code Letter range in
    8·1 answer
  • The shape of a melody allows the piece to begin on the same note. What is this shape called?
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!