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
3241004551 [841]
3 years ago
10

Warren Company has taken a position in its tax return to claim a tax credit of $30 million (direct reduction in taxes payable) a

nd has determined that its sustainability is "more likely than not," based on its technical merits. The tax credit would be a direct reduction in current taxes payable. Warren believes the likelihood that a $30 million, $18 million, or $6 million tax benefit will be sustained is 25%, 30%, and 45%, respectively. Warren’s taxable income is $255 million for the year. Its effective tax rate is 40%. Warren’s income tax expense for the year is?
Business
1 answer:
shutvik [7]3 years ago
5 0

Answer:

The correct answer is $84 million.

Explanation:

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

Taxable income = $255 million

Tax rate = 40%

Tax credit = $30 million

So, Current tax payable = $255 million × 40% = $102 million

So, Net current tax payable = Current tax payable - Tax credit

= $102 million - $30 million

= $72 million

So, we can calculate the total income tax expense by using following formula:

Total income tax expense = net current tax payable + Additional projected liability

= $72 million + ( $30 million - $18 million)

= $72 million + $12 million

= $84 million

You might be interested in
You've never had a job so decided that it's time to start applying. When filling out
EastWind [94]

Answer:

I would say NA its better than saying nothing or not saying anything

Explanation:

3 0
3 years ago
ABC has the following information for the current year: Budgeted indirect costs are $4,000, the budgeted allocation base is 2,00
Marrrta [24]

Answer:

$2 per hour

Explanation:

<u>Given</u>: Budgeted indirect cost $4000

           Budgeted allocation base ; 2000 hours

           Actual indirect costs incurred: $4200

           Actual allocation base : 2050 hours

Standard rate for allocation of indirect cost = Budgeted indirect cost/Budgeted allocation base

= $4000/2000 hrs

= $2 per hour

Budgeted or standard indirect cost rate refers to the estimated indirect cost rate which is arrived at by dividing budgeted expenses by budgeted allocation base i.e budgeted hours here.

8 0
3 years ago
Some americans argue that _____ should be used to keep domestic wages high and unemployment low.
Lady_Fox [76]
The answer is "tariffs".

If we define tariff in simple words, then we can say that tariff is a tax and it adds to the cost of imported merchandise and is one of a few exchange arrangements that a nation can authorize. 
Tariffs are regularly made to ensure newborn child ventures and creating economies but at the same time are utilized by further developed economies with created enterprises.
3 0
3 years ago
he country Grupindor recently experienced a drastic increase in inflation. This led to the depreciation in the value of its curr
GaryK [48]

Answer:

The correct answer is economy of the nation.

Explanation:

Inflation has a consequence in companies, but we can say that it can cause an initial increase in benefits since wages and other costs are modified based on price variations, that is, they are altered once prices They have varied.

This results in increases in dividend payments, interest and capital investment. In addition, many people can increase their spending with the feeling that buying later can be more expensive. But this is the first initial action in some cases.

In this way, inflation at the national level can lead to an improvement in the trade balance if the same amount of goods can be sold but at higher prices. Even in spite of this, it is a value that distorts normal economic activity, since on the other hand it reduces the purchasing power of people and can lead to a reduction in consumption since you can not buy more.

4 0
3 years ago
Which of the following is a false statement?
astraxan [27]

D) All states have a flat state tax.

8 0
2 years ago
Other questions:
  • Theuniversityadministrationassuresamathematicianthathehasonly1chancein 10,000 of being trapped in a much-maligned elevator in th
    11·1 answer
  • The indirect and direct methods:
    11·2 answers
  • Daniel wants to find out if he can notice the difference in light intensity when he adds some lit candles to a set of lit candle
    11·1 answer
  • g "9. (a) Explain how financial ratio analysis of a firm’s projected cash flow budget could be efficiently used by its managers
    13·1 answer
  • If the price of chocolate-covered peanuts decreases from $1.10 to $0.90 and the quantity demanded increases from 190 bags to 210
    6·2 answers
  • Consider the market for loanable funds. Suppose that savers make deposits in savings accounts at banks. Initially, the interest
    11·1 answer
  • What is CUSTOMER VALUE? How it can be created? Discuss.
    13·1 answer
  • Imagine that a country produces only three goods: apples, bananas, and carrots. The quantities produced and the prices of the th
    8·1 answer
  • A fabric company can produce 11,000 yards of fabric per year currently. The company's goal is to increase the amount of fabric i
    12·1 answer
  • Bryan invested in bryco stock when the firm was financed solely with equity. the firm now has a debt-equity ratio of .3. to main
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!