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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

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Art [367]

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Step Two: A wax and stain are applied and the slats are passed under a cutting wheel.

Step Three: The grooves in the slat are filled with a special elastic glue for the lead.

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3 years ago
Drying times for newly painted microwave oven cabinets are normally distributed with a mean of 2.5 minutes and a standard deviat
Marina86 [1]

Answer: 3.22

Explanation:

Given that;

mean = 2.5 min

standard deviation = 0.25 min

now to get the value of X required, we say

z = (x - u) / a

where z is the distance from the mean measured in the standard deviation units, x is the value we are interested in, u is the mean distribution, a is the standard deviation of the distribution.

the time delay should be just enough to allow 99.8% of the cabinets to dry completely = 99.8/100 = 0.9980

first we determine an appropriate z value.

Using the standardized normal tables,

value of z for approximately 0.9980 is 2.88

so using our initial equation z = (x - u) / a

we substitute the value

z = (x - u) / a

2.88 = ( x - 2.5) / 0.25

2.88 * 0.25 = x - 2.5

0.72 = x - 2.5

x = 0.72 + 2.5

x = 3.22

5 0
2 years ago
Your healthy 63-year-old neighbor is about to retire and comes to you for advice. From talking with her, you find out she was pl
pashok25 [27]

Answer:

Both mutual funds and money market funds are similar in the sense that they pool money from several investors in a variety of instruments. The difference is that money market funds pool the money in very liquid, short-term securities, while mutual funds do the same but in less liquid, longer-term securities.

The 63-year-old neighbor should therefore split the money around 60/40, 60% of the funds for mutual funds, in order to have long-term security, and 40% in the money market funds, in order to have quick cash available when needed.

5 0
2 years ago
A well diversified portfolio needs about 3 to 5 stocks from different categories.
Oduvanchick [21]

Answer:

This is false.

Explanation:

Diversification is An investment strategy that includes a mixture of a wide variety of investments from different categories within a portfolio.

A well diversified portfolio does not need 3 to 5 stocks from different categories instead A well-diversified portfolio needs about 20-25 stocks from various categories.

3 0
3 years ago
Adjusting entries affect
jeka57 [31]

I don't have enough data later

4 0
3 years ago
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