Enter mia profit/loss for the 2 month

At December 31, 2014, Fell Corporation had a deferred tax liability of $680,000, resulting from future taxable amounts of $2,000

ANTONII [103]

Answer:

Dr Income Tax Expense 120,000

Cr Deferred Tax Liability 120,000

Explanation:

Deferred tax liability can be defined as the tax liability which has been due for the current period but has not yet been paid such as installment sales receivable.

Fell Corporation journal entry for to adjust the deferred tax liability

Dr Income Tax Expense 120,000

Cr Deferred Tax Liability 120,000

$2,000,000 x .4 = $800,000

$800,000- $680,000 = $120,000

4 0

3 years ago

the annual discount rate is 10% beginning in 2016, you will receive $10000 on the first day of every year. what is the resent va

-Dominant- [34]

Answer:

$100,000

Explanation:

Data provided

Perpetual cash flow = $10,000

Discount rate = 10%

According to the given situation, the computation of Present value of this inginite sequence of cash flow is shown below:-

Present value = Perpetual cash flow ÷ discount rate

= $10,000 ÷ 10%

= $10,000 ÷ 0.1

= $100,000

Therefore for computing the present value we simply applied the above formula.

7 0

4 years ago

Don, an office equipment sales representative, earns a weekly salary plus a commission on his sales. One week his total compens

Y_Kistochka [10]

Answer:

The answer is: Don's weekly salary is $460 and his sales' commission is 5%

Explanation:

We have to solve the following two equations:

Don's salary week 1 = b + $3,000c =$610

Don's salary week 2 = b + $4,000c =$660

Where:

b = Don's base weekly salary
c = sales' commission

Step 1:

b + $4,000c =$660

$1,000c = $50

Step 2:

c = $50 / $1,000 = 0.05 = 5%

Step 3:

b + ($3,000 x 5%) = $610

b + $150 = $610

Step 4.

b = $610 -$150 = $460

8 0

3 years ago

The Surf's Up issues 1,000 shares of 6%, $100 par value preferred stock at the beginning of 2020. All remaining shares are commo

motikmotik

Answer:

12,000 dividends for preferred stock

6,000 dividends for common stock

Explanation:

1000 shares $100 = $100,000 preferred stock

preferred dividend: 100,000 x 6% = 6,000

2020 no dividends preferred stock acumulates 6,000

2021 18,000 dividends delcared

-6,000 preferred stock dividend for 2021

<u> - 6,000 preferred stock dividend for 2020</u>

6,000 dividends for common stock

Total preferred 6,000 + 6,000 = 12,000

6 0

4 years ago

Consider a four-year project with the following information: initial fixed asset investment = $555,000; straight-line depreciati

3241004551 [841]

Answer:

for every 1% increase in the quantity sold, OCF increases by 1.24%

for every 1% decrease in the quantity sold, OCF decreases by 1.24%

Explanation:

Consider a four-year project with the following information: initial fixed asset investment = $555,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $37; variable costs = $25; fixed costs = $230,000; quantity sold = 79,000 units; tax rate = 24 percent. How sensitive is OCF to changes in quantity sold?

initial outlay = $555,000

depreciation expense per year = $555,000 / 4 = $138,750

contribution margin per unit = $37 - $25 = $12

quantity sold = 79,000 units

tax rate = 24%

fixed costs = $230,000

OCF = {[(79,000 x $12) - $230,000 - $138,750] x (1 - 24%)} + $138,750 = $578,980

if sales increase by 10%, OCF = {[(86,900 x $12) - $230,000 - $138,750] x (1 - 24%)} + $138,750 = $651,028 ⇒ 12.44% increase

if sales decrease by 10%, OCF = {[(71,100 x $12) - $230,000 - $138,750] x (1 - 24%)} + $138,750 = $506,932 ⇒ 12.44% decrease

4 0

3 years ago