Farmer Inc. began business on January 1, 2019. Its pretax financial income for the first 2 years was as follows:
2019 $340,000
2020 760,000
The following items caused the only differences between pretax financial income and taxable income.
1. In 2019, the company collected $420,000 of rent; of this amount, $140,000 was earned in 2019; the other $280,000 will be earned equally over the 2020–2021 periods. The full $420,000 was included in taxable income in 2019.
2. The company pays $20,000 a year for life insurance on officers.
3. In 2020, the company terminated a top executive and agreed to $90,000 of severance pay. The amount will be paid $30,000 per year for 2020–2022. The 2020 payment was made. The $90,000 was expensed in 2020 for financial reporting purposes. For tax purposes, the severance pay is deductible as it is paid.
4. The company purchased a large asset in 2019 for $60,000. The depreciation will be computed using a five-year life. For tax purposes, the company will be able to deduct half of the cost in 2019 and in 2020.
The enacted tax rates existing on December 31, 2019, are:
2019 30% 2021 40%
2020 35% 2022 40%
Instructions:
(a) Determine taxable income for2019 and 2020.
(b) Determine the deferred income taxes at the end of 2019, and prepare the journal entry to record income taxes for 2019.
(c) Prepare a schedule of future taxable and (deductible) amounts at the end of2020.
(d) Prepare a schedule of the deferred tax (asset) and liability at the end of2020.
(e) Compute the net deferred tax expense (benefit) for2020.
(f) Prepare the journal entry to record income taxes for 2020.
In: Accounting
Groupon
1) Is there a dominant technology with the firm Groupon? If so, what are the characteristics?
2) Do all firms have access to similar technology? If not, are some firms dominant due to their preferential access to the dominant technology?
3) Does the firm Groupon invest in R&D?
4) How elastic is the industry demand of Groupon?
5) How do consumers gain product information from Groupon? Explain their Advertising Content and Intensity?
6) What are the buyer characteristics of Groupon? Explain size and frequency of orders and the corresponding selling practices adopted by firms
7) What is the extent of regulation with the firm Groupon? What are the costs of compliance, if any?
In: Economics
Let n1equals100, Upper X 1equals50, n2equals100, and Upper X 2equals30. Complete parts (a) and (b) below. a. At the 0.01 level of significance, is there evidence of a significant difference between the two population proportions?
a) Calculate the test statistic, Upper Z Subscript STAT, based on the difference p1minusp2. The test statistic, Upper Z Subscript STAT.
b) While either a standardized normal distribution table or technology may be used to calculate the p-value, for this exercise, use technology. Identify the value of the p-value from your technology output.
c. Construct a 95% confidence interval estimate of the difference between the two population proportions.
In: Math
For this discussion, consider the ways in which technology and informatics are used to support evidence-based practice. Please address each of the following questions in your discussion response for this week: Choose a specific evidence-based practice (examples: CAUTI reduction, sepsis protocol, SCIP protocol, bedside shift report, etc.). Describe how technology and informatics are used to support the interventions used in practice? Describe how employing evidence-based practice guidelines improves patient outcomes? What benefits and challenges have you experienced with (the integration of) information technology in your practice? What strategies did you, or could you, use to overcome these challenges?
In: Nursing
The following events occurred during 2018 for various audit clients of your firm. Consider each event to be independent and the effect of each event to be material.
A manufacturing company recognized a loss on the sale of investments.
An automobile manufacturer sold all of the assets related to its financing component. The operations of the financing business is considered a component of the entity.
A company changed its depreciation method from the double-declining-balance method to the straight-line method.
Due to obsolescence, a company engaged in the manufacture of high-technology products incurred a loss on the write-down of inventory.
One of your clients discovered that 2017’s depreciation expense was overstated. The error occurred because of a miscalculation of depreciation for the office building.
A cosmetics company decided to discontinue the manufacture of a line of women’s lipstick. Other cosmetic lines will be continued. A loss was incurred on the sale of assets related to the lipstick product line. The operations of the discontinued line is not considered a component of the entity.
Required:
Discuss the 2018 financial statement presentation of each of the above events. Do not consider earnings per share disclosures
In: Accounting
The average retail price of regular gasoline used by motor vehicles decreased from $3.85 per gallon in March 2012 to $1.76 per gallon in February 2016. The following may or may not be a reason for this decline. Using demand and supply analysis, explain why or why not.
(1) Use of a new technology called “fracking” to extract oil from the ground
(2) The economies in most of Europe were deteriorating and heading toward a recession
(3) OPEC, the cartel of oil producers, decided to keep production of oil at record levels
(4) Increasing use of hybrid/electric cars in the US
(5) Lower profits for Exxon, Shell and other producers of gasoline.
The significant drop in price in gasoline used by automobiles may or may not have had the following effects. Explain why or why not.
(1) Shut down of some oil refineries producing gasoline
(2) Decrease in sale of hybrid/electric vehicles
(3) Increase in sale of gas guzzler cars, such as SUVs
(4) Increase in number of vacations taken by automobile
(5) Higher price of cross country trips by bus
In: Economics
Company X has the following information:
Inventory at end-of-year prices of $1,300,000 (2018 – base year), $1,450,000 (2019), and $1,350,000 (2020)
The price index is 105 in 2019 and 107 in 2020
Use the dollar-value LIFO method to calculate ending inventory for 2019 and 2020.
In: Accounting
On January 1, 2020, the merchandise inventory of Ivanhoe, Inc. was $1700000. During 2020 Ivanhoe purchased $3398000 of merchandise and recorded sales of $4200000. The gross profit rate on these sales was 20%. What is the merchandise inventory of Ivanhoe at December 31,
2020? $1738000. $3360000. $840000. $802000.
In: Accounting
Suppose GDP is $800 billion, taxes are $150 billion, private saving is $50 billion, and public saving is $20 billion. Assuming this economy is closed, calculate consumption, government purchases, national saving, and investment.
In: Economics
Using the method of recursion, compute y[n] for n = 0 to 20, when x[n]=u[n] and y[-1]=2:
?[? + 1] − 0.8?[?] = ?[?]
Find a closed-form expression for your result.
In: Advanced Math