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barxatty [35]
3 years ago
7

Sunland Inc., a real estate developing company, was accounting for its long-term contracts using the completed contract method p

rior to 2021. In 2021, it changed to the percentage-of-completion method. The company decided to use the same for income tax purposes. The tax rate enacted is 40%. Income before taxes under both the methods for the past three years appears below.
2019 2020 2021
Completed contract $480000 $318000 $156000
Percentage-of-completion 780000 399000 300000
Which of the following will be included in the journal entry made by Sunland to record the income effect?
a. A debit to Retained Earnings for $239400.
b. A credit to Retained Earnings for $228600.
c. A credit to Retained Earnings for $158400.
d. A debit to Retained Earnings for $158400.
Business
1 answer:
Elodia [21]3 years ago
8 0

From the computation done, there'll be a debit to retained earnings for 239400.

The retained earnings will be:

= percentage of completion (1 - Tax rate)

Based on the values we've, this will be:

Retained Earnings = 399000 (1 - 40%)

Retained Earnings = = 399000 × 0.6

Retained Earnings = 239400

Therefore, there'll be a debit to retained earnings for 239400.

Learn more about retained earnings on:

brainly.com/question/25631040

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You have purchased 1 million shares in a restaurant chain venture. At this zero-stage investment, your company’s assets are $110
Drupady [299]

Answer:

(a) 1,370,000 shares

(b) 42.19%

Explanation:

Given that,

Shares in a restaurant chain venture = 1,000,000 shares

Price of each share = $1.00

(a) To raise the additional $1,370,000:

Shares will you need to sell:

= Additional amount ÷ Price of each share

= $1,370,000 ÷ $1.00

= 1,370,000 shares

(b) No. of Shares After investment:

= Shares need to sell + Shares in a restaurant chain venture

= 1,370,000 + 1,000,000

= 2,370,000 shares

Therefore, the fraction of the firm will you own after the VC investment:

= (Shares in a restaurant chain venture ÷ No. of Shares After investment) × 100

= (1,000,000 ÷ 2,370,000) × 100

= 0.4219 × 100

= 42.19%

3 0
3 years ago
Slotkin Products purchased a machine for $65,000 on July 1, 2017. The company intends to depreciate it over 8 years using the do
frez [133]

Answer:

A) $8,125

Explanation:

Note Slotkin Products uses the double-declining balance method. Under the double-declining balance method depreciation expense is calculated as :

Annual depreciation expense = 2 x SLDP x BVSLDP

where,

SLDP = 100 ÷ Useful life

         = 12.5 %

and

BVSLDP = Cost in first year or Book Value for other succeeding years =

therefore,

Annual Depreciation expense = 2 x 12.50 % x $65,000 = $16,250

thus,

Partial depreciation from July 1, 2017 to Dec 31, 2017 - 6 months will be :

Depreciation expense = $16,250 x 6/12 = $8,125

Conclusion :

Depreciation for 2017 is $8,125

7 0
3 years ago
In the economy of​ Cycladia, the total unemployment rate is equal to 11.0 ​percent, the structural unemployment rate is 2.42.4 ​
damaskus [11]

Answer:

The cyclical unemployment rate is 4.2%

Explanation:

There is a natural unemployment rate which contains every unemployment rate which is cyclical unemployment plus structural unemployment plus frictional unemployment, so then in order to get cyclical unemployment we will use the below formula:

natural unemployment = Frictional unemployment + Cyclical unemployment +structural unemployment

therefore we are given the natural unemployment rate of 11%

Frictional Unemployment Rate of 4.4%

Structural unemployment rate of 2.4%

then we substitute on the above mentioned formula and solve for cyclical unemployment

11% =4.4% + Cyclical Unemployment Rate+ 2.4% then we transpose and solve for cyclical unemployment rate

11% - 4.4% -2.4% = Cyclical Unemployment Rate

4.2 % = Cyclical unemployment rate

this unemployment rate goes with the business cycle of any business in which if there is a recession in an economy it is accounted for even if there is economic growth it is accounted for.

4 0
4 years ago
Unlike traditional manufacturing, flexible manufacturing: a. decreases efficiency. b. lowers unit costs. c. allows the productio
loris [4]

Answer:

The correct answer is letter "B": lowers unit costs.

Explanation:

Traditional manufacturing is the production process by which companies produce goods part to be delivered for sale and part to have them stored in case of shortages which could increase inventory costs.  

Flexible manufacturing concentrates on using technology for mass-production of products characterized to be subject to rapid market changes. <em>Flexible manufacturing saves money in labor costs, thus, lowers the unitary costs of the output.</em>

4 0
4 years ago
Which of the following statements accurately describes the economic policy of mercantilism?
labwork [276]

The best answer is letter a.<span> It downplayed the role of government in stimulating economic growth.</span>

>>The main goal of mercantilism was to increase a nation's wealth by imposing government regulation concerning all of the nation's commercial interests.
 It sticks to the belief that the national strength can be maximized by limiting imports<span> via </span>tariffs<span> and maximizing </span>exports.<span>

</span><span>

</span>
5 0
3 years ago
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