In its Year 2 income statement, what amount should Shin report as total income tax expense? 3. (TCO B) Justification for the method of determining periodic deferred tax expense is based on the concept of: 4. (TCO B) In Year 2, Ajax, Inc. reported taxable income of $400,000 and pretax financial statement income of $300,000. The difference resulted from $60,000 of nondeductible premiums on Ajax's officers' life insurance and $40,000 of rental income received in advance.
A- What is the finance charge on this loan? $50 + $5 = $55 B- Dave borrowed $500 on January 1, 2006 & paid it all back at once on Dec 31, 2006. What was the APR? $55 on $500 or 11% APR C- If Dave paid the $500 in 12 equal monthly payments, what is the APR? 20.3% 4.
What is noninstallment credit? (0.5 points) a system of credit that is payable in one lump-sum amount by a specified date. 6. Name at least one section of a credit report. (0.5 points) Credit History Lesson 2 (3.0 points) 1.
Prior to the purchase, Little was involved in a patent infringement with Ideas, Inc. MegaCorp, Inc. agreed to pay $5 million in damages, and deduct it as necessary business expense. However, the IRS states that MegaCorp, Inc. must characterize the payment as capital expenditure. That is why MegaCorp, Inc. has come for help to determine if they are entitled to the deduction. ISSUE Can companies deduct payments as business expense if they incurred the liability through the purchase of another company? CONCLUSION MegaCorp, Inc. must capitalize the $5 million payment for the infringement liability as capital expenditure.
Problem 17-7 on Ex-dividend Price based on Chapter 17 Payout Policy Natsam Corporation has $250 million of excess cash. The firm has no debt and 500 million shares outstanding with a current market price of $15 per share. Natsam’s board has decided to payout this cash as a one-time dividend. a. What is the ex-dividend price of a share in a perfect capital market?
He must declare the sales proceeds. $1,000 gain on sale. Ken's stock sale proceeds | Amount | Sale Proceeds ($32 x 1,000 shares) | $32,000 | Less Selling Expenses | $0 | Amount Realized | $32,000 | Less Tax basis ($31 x 1,000 shares) | $31,000 | Gain on sale | $1,000 | c.) Ken received $25,000 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years for $210,000. Gain of $14,500 Ken's Annuity | Amount | Total investment into annuity | $210,000 | Number of payments | 20 | Return on capital for the payments | $10,500 | Ken's
Card Name | Interest Rate on Purchases | Cash Advance Rate | Annual Fee | Penalty APR | Grace Period | Late Payment Fee | Over Credit Limit Fee | Minimum Annual Income | Cash Back | Citi Platinum Select | 8.99% | 19.99% | No Fee | N/A | 20-Day | $15,$25 or $35 | $35 | $12,000 | No | Blue Cash from American Express | 0% first 6 months8.99-13.99% after 6 months | 18.99% | No Fee | 23.99% | If balance is paid in full each billing cycle | $15, $29 or $35 | $29 | Undisclosed minimum | Up to 5% | Collegiate Visa | 14.75% | 14.75% | $12 waived the first year | 18.75% | N/A | $20 | $20 | N/A | N/A | Discover Card for Students | 17.99% | 22.99% | No Fee | 19.99-24.99% | 25-Day | $15-$35 | $15-$35 | N/A | 1%or 2% | 3. Based upon the information, which credit card is the most appropriate for Sharese? Why? Based on the information, I believe the credit card most appropriate for Sharese is the Blue Cash from American Express. I believe that Sharese will benefit from this card because it has no annual fee, and offers cash back.
During 2010 they issued stock for $98,000, and paid dividends of $34,000. Net income for 2010 was $402,000. The retained earnings balance at the beginning of 2010 was: (Points : 3) $2,552,000 $1,816,000 $1,914,000 $2,454,000 Question 11. 11. (TCO D) Money collected from customers before the work is done is treated as (Points : 3) prepaid expenses.
First Round Capital proposed to invest $50,000 of equity capital into DLK, but on the condition that the investment firm be granted the right to elect five members to DLK’s board of directors. Discouraged by the “high cost” of external borrowing, Lacey decides to approach Kaylee and Doug. Lacey suggests to Kaylee and Doug that each of the three original investors contribute an additional $25,000 to DLK in exchange for five 20-year debentures. The debentures will be unsecured and subordinate to ACME’s debt. Annual interest on the debentures will accrue at a floating 5% premium over the prime rate.
Week 2 Practice Question Solutions EXERCISE 4-8 (15–20 minutes) (a) Net sales $ 540,000 Cost of goods sold (210,000) Administrative expenses (100,000) Selling expenses (80,000) Discontinued operations-loss (40,000) Income before income tax 110,000 Income tax ($110,000 X .30) 33,000 Net income $ 77,000 (b) Income from continuing operations before income tax $150,000* Income tax ($150,000 X .30) 45,000 Income from continuing operations 105,000 Discontinued operations, less applicable income tax of $12,000 (28,000) Net income $ 77,000 *$110,000 + $40,000 Earnings per share: Income from continuing operations