I think , the Government should add a free-education welfare to the people.
It's true that it's probably really expensive on the budget, but it will strengthen the overall skill of the people within the country. In the long run, it will bring a higher return for the Country
Answer:
Correct option is C ; the DTA - Deferred tax asset is $300,000
Explanation:
For losses of Year 2015 DTA should be created at 31/12/2015 as due to this loss future income will get reduced and consequently company's tax liability will get reduced.
DTA = 750,000 x 40% = 300,000
In year 2016 tax rate is 40% so DTA will be at this rate as after setting off the loss of year 2015 with income of 2016 the company will benefit by 750000 x 40%=300000 due to lesser income tax liability.
Hence the DTA - Deferred tax asset is $300,000
Answer:
1.
February 1 Cash $330000 Dr
Notes Payable $330000 Cr
2.
July 31 Interest expense $16500 Dr
Interest payable $16500 Cr
Aug 1 Notes Payable $330000 Dr
Interest Payable $16500 Dr
Cash $346500 Cr
Explanation:
1.
The issuance of note payable against cash will require the cash account to be debited and notes payable, which is a liability, to be credited.
2.
The interest on note payable for 6 months will become due and will be recorded on 31 July. The interest expense and interest payable accounts will be used.
The interest for 6 months is = 330000 * 0.1 * 6/12 = $16500
On 1 August, when the note and interest payable is paid, the cash will be credited by the sum of notes payable and interest payable accounts.
