At the end of December 2013, Rosenfeld Co. had $10,000 of Deferred Tax Assets related to its Allowance for Doubtful Accounts. In response to low public approval ratings (and after a particularly boisterous holiday party), the US Congress passed a law to reduce the Federal Statutory Tax Rate from 35% to 20% on December 31, 2013. As a US company, Rosenfeld had to immediately adjust the balance of its DTAs based on the new law. Which of the following items would be decreased by the entry to adjust the balance in Deferred Tax Assets?
a. Income Tax Payable.b. Income Tax Expense.c. Net Income.d. Deferred Tax Assets.e. Cash from Operating Activities.

Answers

Answer 1

Answer:

Rosenfeld Co.

The item decreased by the entry to adjust the balance in Deferred Tax Assets is:

d. Deferred Tax Assets.

Explanation:

Deferred Tax Assets on December 31 = $10,000

Federal Statutory Tax Rate = 35%

New Federal Statutory Tax Rate = 20%

The balance in the Deferred Tax Assets  will be reduced to $5,714 ($10,000/35% * 20%)

This means that the Deferred tax assets will be decreased by $4,286 while the net income will be increased by $4,286.


Related Questions

Total quality management focuses on ______. Group of answer choices kaizen instant rework continuous inspection frequent inspection

Answers

Answer: Kaizen

Explanation:

Kaizen is simply a term in Japanese which means continuous improvement. The philosophy states that the operations of a company should be continually improved.

Total quality management focuses on Kaizen. It continually seeks for improvement in the company's operations while involving the workers in the company.

If no page number or paragraph number is available when directly quoting from an electronic source, then the heading or section name along with the number of the paragraph within that section should be included.

a. True
b. False

Answers

Answer:

a. True

Explanation:

Plagiarism can be defined as the act of representing or using an author's work, ideas, thoughts, language, or expressions without their consent, acknowledgement or authorization.

This ultimately implies that, plagiarism is an illegal act of presenting another author's intellectual work or copyrighted items by using their ideas, thoughts, language or expressions, word for word without authorization or permission from the original author.

The four (4) common types of plagiarism are;

1. Copy and paste: this typically involves copying another author's work word for word and pasting it as yours without proper citation or reference with quotation marks.

2. Improper citation : this involves an author failing to provide an in-text reference or citation of the original author appropriately.

3. Find and replace: this typically involves an author finding some words to change (replace) in the original literary work.

4. Fabrication: this occur when an author makes up unverified or false data to use in his or her literary work.

Attribution can be defined as a process which typically involves the citation (reference) of an original source of information such as a quote, paraphrase or summary, using the author's full name and job title or position as the case may be.

Furthermore, if there is no page number or paragraph number when directly quoting from an electronic source, then one is permitted to use the heading or section name along with the number of the paragraph within that section.

Fiscal policy is Question 20 options: the money supply policy that the Fed pursues to achieve particular economic goals. the spending and tax policy that the government pursues to achieve particular macroeconomic goals. the investment policy that businesses pursue to achieve particular macroeconomic goals. the spending and saving policy that consumers pursue to achieve particular macroeconomic goals. none of the above

Answers

Answer:

the spending and tax policy that the government pursues to achieve particular macroeconomic goals.

Explanation:

Fiscal policy in economics refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.

A fiscal policy affects combined demand through changes in government policies, spending and taxation which eventually impacts employment and standard of living plus consumer spending and investment.

Fiscal policy typically includes the spending and tax policy that a government pursues in order to achieve particular macroeconomic goals such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.

According to the Keynesian theory, government spending or expenditures should be increased and taxes should be lowered when faced with a recession, in order to create employment and boost the buying power of consumers.

Generally, an economy will return to its original level of output (production) and price level when the short-run aggregate supply curve falls (decreases) and no changes in monetary and fiscal policies are implemented.

Mimi is granted a license to sell her unique Spirit Pins at local high school lacrosse games. When Mimi prices her pins at $10, she sells 20 pins per game. When she lowers her price to $8, she sells 40 pins. The additional money she earns from dropping her price is known as the __________.

a. Output effect
b. Price effect
c. Marginal revenue
d. Opportunity cost

Answers

Answer:

c

Explanation:

Marginal revenue is the change revenue when quantity sold increases by one unit

Marginal revenue = change in  total revenue /change in quantity sold

Mimi's marginal revenue = $10 - $8 = $2

Assume you decide you should invest at least part of your money in large-capitalization stocks of companies based in the United States. What are the advantages and disadvantages of choosing the Bledsoe Large-Company Stock Fund compared to the Bledsoe S

Answers

It can go wrong and you won’t make your money

The Bronco Corporation exchanged land for equipment. The land had a book value of $125,000 and a fair value of $160,000. Bronco received $15,000 from the owner of the equipment to complete the exchange which has commercial substance. Required: 1. What is the fair value of the equipment

Answers

Answer:

The Bronco Corporation

The fair value of the equipment is:

= $145,000.

Explanation:

a) Data and Calculations:

Book value of land = $125,000

Fair value of the land = $160,000

Amount received from the equipment owner in exchange = $15,000

Fair value of the equipment = $145,000 ($160,000 - $15,000)

b) This simply means that the equipment is worth less than the land which is exchanged between Bronco and the equipment owner.

Destaque las ventajas y desventajas que tiene un mercado libre.​

Answers

answer:

ventaja —

libertad para innovarlos clientes impulsan las elecciones

desventaja —

gamas de productos limitadaspeligros del afán de lucro

explanation:

la falta de control gubernamental permite a las economías de libre mercado una amplia gama de libertades, pero estas también tienen algunos inconvenientes distintos

Blue Spruce Company is considering two new projects, each requiring an equipment investment of $101,800. Each project will last for three years and produce the following cash flows:

Year Cool Hot
1 $40,400 $44,400
2 45,400 44,400
3 50,400 44,400
136,200 $133,200

The equipment will have no salvage value at the end of its three-year life. Blue Spruce Company uses straight-line depreciation and requires a minimum rate of return of 12%.

Present value data are as follows:
Period 12%
1 0.89286
2 0.79719
3 0.71178

Present Value of an Annuity of 1
Period 12%
1 0.89286
2 1.69005
3 2.40183

Required:
Compute the net present value of each project.

Answers

Answer:

50,400 44,400

0.79719

1.69005

Answer:

1.00.87.3

Explanation: i dont know

A pharmaceutical company with headquarters in India sells fluconazole, the generic version of Pfizer's anti-fungal drug Diflucan internationally for significantly less money than many U.S. generic drug manufacturers. The generic drugs industry in this country needs to rethink its

Answers

Answer:

Pricing strategy to stay competitive

Explanation:

Pricing strategy is the process by which a company sets prices of goods and services offered to a consumer.

In setting up a price strategy the management.of a business need to put into consideration the competitive reaction, pricing position, pricing segment, and pricing capability.

The generic drugs companies in the US are selling fluconazole for a higher price than pharmaceutical company with headquarters in India in the international market.

In order for them to stay competitive they will need to review their price downward or customers will switch to the cheaper option

Explain the statement “The entrepreneur is the pivot of development.”

Answers

Answer:

Entrepreneurship is a continuous phase of development and movement while being focused on goal

Explanation:

An entrepreneur has an undeniable trait of being flexible along with being focused and pivoted to move in the right direction at the right time. If the circumstances require, he/she can also pivot in the other direction while being flexible at the same time.

Thus, entrepreneurship is a continuous phase of development and movement while being focused on goal.

For 2020, Vaughn Manufacturing reports beginning of the year total assets of $904000, end of the year total assets of $1130000, net sales of $1050000, and net income of $199000. The rate of return on assets for Vaughn in 2020 is 15.6%. 22.0%. 17.6%. 19.6%.

Answers

I think it’s 19.6%... I think

Suppose the price of a BMW falls. Explain the law of demand based on the income and substitution effects.

Answers

Answer:

According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

It is expected that when the price of a BMW falls, the quantity of cars demanded increases.

there are two effect in place that affect the demand for BMW.

They are :

the substitution effect the income effect

The substitution effect looks at the change in price of a good relative to other goods. When the price of a BMW falls, it becomes cheaper relative to other goods. As a result, consumers buy more of BMWs and less of other goods. This leads to a movement down along the demand curve for that good.

The income effect looks at how a change in price affects real disposable income. When the price the BMW decreases, real disposable income increases. As a result, consumers can afford to buy more BMW cars as the consumers purchasing power has increased, holding money income constant.

These two effects lead to an increase in the quantity of BMW demanded

Explanation:

answer the following about break even analysis. New city day care center operates from Monday to friday. it has fixed expenses of $5,000 per week and charges each child who attends the program $15 per day. It costs the center $5 per day for supplies and snacks fro each child. How many children must come ot the center each day for it to break even

Answers

Answer:

500 children

Explanation:

Break even point is the level at which a firm makes neither a profit nor a loss. In other words the point where Profit = $ 0.

Break even (units) = Fixed Costs ÷ Contribution per unit

Therefore,

Break even (children) = $5,000  ÷ ($15 - $5)

                                    = 500

500 children must come to the center each day for it to break even.

January 2, 2018, Cullumber, Inc. purchased a patent for a new consumer product for $810000. At the time of purchase, the patent was valid for 15 years; however, the patent’s useful life was estimated to be only 10 years due to the competitive nature of the product. On December 31, 2021, the product was permanently withdrawn from the market under governmental order because of a potential health hazard in the product. What amount should Cullumber charge against income during 2021, assuming amortization is recorded at the end of each year?

Answers

Answer:

Cullumber, Inc.

The amount that Cullumber should charge against income during 2021 is:

= $567,000.

Explanation:

a) Data and Calculations:

Cost of a purchased patent = $810,000

Estimated useful life = 10 years

Annual amortization expense = $81,000

Accumulated amortization for 3 years = $243,000 ($81,000 * 3)

Book value of patent on December 31, 2021 = $567,000 ($810,000 - $243,000)

The remaining book value should be charged against income in 2021 because of the withdrawal of the product.

Identify whether each of the following would be reported as an operating, investing, or financing activity on the statement of cash flows: a. Purchase of investments b. Disposal of equipment c. Payment for selling expenses d. Collection of accounts receivable e. Cash sales f. Issuance of bonds payable

Answers

Answer:

a. Investing Activities

b. Investing Activities

c. Operating Activities

d. Operating Activities

e. Operating Activities

f. Financing Activities  

Explanation:

Operating Activities includes activities in daily operation of the business as in buying and selling with customers and suppliers.

Investing Activities includes the purchase and sell of assets and investments.

Financing Activities includes the raising of capital and debt and repayments to holders.

A city starts a solid waste landfill that it expects to fill to capacity gradually over a 20-year period. At the end of the first year, it is 11 percent filled. At the end of the second year, it is 25 percent filled. Currently, the cost of closure and postclosure is estimated at $1 million. None of this amount will be paid until the landfill has reached its capacity.
Which of the following is true for the Year 2 government-wide financial statements?
A. Expense will be $130,000 and liability will be $260,000.
B. Expense will be $140,000 and liability will be $250,000.
If this landfill is judged to be a proprietary fund, what liability will be reported at the end of the second year on fund financial statements?
a. $140,000
b. $0
c. $ 260,000
d. $ 250,000
If this landfill is judged to be a governmental fund, what liability will be reported at the end of the second year on fund financial statements?
a. $0
b. $140,000
c. $260,000
d. $250,000

Answers

Answer:

1- B. Expense will be $140,000 and liability will be $250,000

2- d. $250,000

3- d. $250,000

Explanation:

The expense will be $140,000 which is calculated by year 1 and year 2 percent filled. The calculation is as follows:

Year 2 liability : $1,000,000 * 25% = $250,000

Year 1 liability : $1,000,000 * 11% = $110,000

Year 2 expense = $140,000.

Santos Co. is preparing a cash budget for February. The company has $20,000 cash at the beginning of February and anticipates $75,000 in cash receipts and $100,250 in cash payments during February. What amount, if any, must the company borrow during February to maintain a $5,000 cash balance

Answers

Answer:

$10,250

Explanation:

The Cash Budget for February can be summarized as :

Receipts                                    $75,000

Less Payments                       ($100,250)

Cash movement                      ($25,250)

Beginning Balance                   $20,000

Ending Balance                         ($5,250)

Desired Balance                        $5,000

Amount to be Borrowed          $10,250

The company must borrow $10,250 ($5,000 + $5,250) during February to maintain a $5,000 cash balance.

Suppose the cross-price elasticity of demand between goods X and Y is -5. How much would the price of good Y have to change in order to change the consumption of good X by 50 percent

Answers

Answer:

-2.5%

Explanation:

The computation is given below:

We know that

Cross price elasticity of demand = Percentage change in the price of y ÷ percentage change in the price of x

And, the same is given i.e. -5

So here the percentage of change in the price of y is

= -5 × 50%

= -2.5%

BrandCo currently has 65.6 million shares outstanding. If BrandCo's shares are traing at $57 per share, what is the company's market capitalization (i.e., value of equity)

Answers

Answer:

$3,739.20 million

Explanation:

Calculating the company's market capitalization

- 65.6 million shares outstanding

- If BrandCo's shares are trading at $57 per share

Company's market capitalization = Shares outstanding * Current price

Company's market capitalization = 65.6 million shares * $57

Company's market capitalization = $3,739.20 million

On December 31, the balance in the office supplies account is $1,300. A physical count shows $510 worth of supplies on hand. Required: Prepare the adjusting entry for supplies. Refer to the Chart of Accounts for exact wording of account titles.

Answers

Answer:

Date                    Account title                                               Debit          Credit

December 1        Office Supplies Expense                           $790

                            Office Supplies                                                             $790

Explanation:

Office supplies is an asset but when it is used it should be debited to the office supplies expense account because it becomes an expense that should be catered for in the Income statement.

The office expense that is used for the year is:

= Book balance - Physical inventory

= 1,300 - 510

= $790

The private equity firm Clarence Partners is looking at a leveraged buyout
opportunity on the Longo Trattoria restaurant chain. Longo today (Year O) has a
capital structure of 75% equity, 25% debt. Its free cash flow last year (FCFO) was
$1 Million and it is expected to grow at constant rate of 8% per year. All its assets
are operating assets. Its WACC equals 14%. If Clarence invests in the deal (it
would acquire 100% of the company), it plans to exit at the end of Year 5, at
which point Longo's capital structure will be 90% equity and only 10% debt, and
its enterprise value (EV) will be estimated at 20 times its FCF in Year 5 (FCF5). All
interim cash flows will be used to pay down debt. Clarence has a minimum 35%
IRR hurdle rate.
1. What is Longo's value of equity today?
2. What will be Longo's value of equity at the end of Year 5?
3. How much equity should Clarence invest today if it is to meet exactly its
hurdle rate?
4. How much debt should Clarence contract, in addition to its equity
investment, in order to close the deal with Longo today?

Answers

Answer:

I dont know

Explanation:

Just want the points

Clay and Maryanna own a house together, which they decide to sell for $200,000. The two decide to split the proceeds according to the ratio of money that each invested in the property. Clay put in the most money at a ratio of 5:3. How much money should Maryanna get from the sale

Answers

Answer:

The answer is "[tex]\$75,000[/tex]"

Explanation:

Convert the ratio to several fractions first. Its first half of such a ratio is measured by multiplying two sides (Clays 5 + Maryanne's 3 pieces = 8 total parts) combined, to determine the numerator, and the very first part of the ratio is maintained as a numberer of the factions (5 parts, Clay contribution). Therefore Clay made a significant donation of [tex]\frac{ 5}{8}[/tex], which's also [tex]\frac{3}{8}[/tex] of Maryanna[tex](\frac{8}{8}-\frac{5}{8}=\frac{3}{8})[/tex] donated.

[tex]\to \$75,000 \times \frac{3}{8}\\\\\to \$200,000[/tex]

When reviewing the performance appraisals for the marketing department, the HR manager found what appeared to be leniency errors, as most employees received similar ratings that were above average. Going forward, raters are going to be required to use a forced distribution, as this will reduce the chance of leniency or strictness errors.
a. True
b. False

Answers

True Is the Answer dear....

It is true that raters are going to be required to use a forced distribution when reviewing the performance appraisals of marketing department by HR manager.

What is performance appraisal?

This is a process of evaluating how well an employee has performed in an organization and in line with the employee's key performance indicator.

The aim of perfomace apprailsal for the organization to know whether or not an employee abide with the indicators set by the company.

Hence, It is true that raters are going to be required to use a forced distribution when reviewing the performance appraisals of marketing department by HR manager.

Learn more about performance appraisal here: https://brainly.com/question/1532968

Explain the potential issues that can arise by not keeping a balanced checkbook.

Answers

Answer:

Explanation:

You might not catch bank errors.

You might make an error in calculating your bank balance which could cause you to overdraft.

You might not see valid charges made by the bank.

You might forget to list automatic drafts from your checking account.

You might not catch errors you make such as double postings, etc.

you might not post automatic deposits to customer accounts, causing errors in your subsidiary ledgers.

you could double pay a bill by accident, also causing errors in subsidiary ledgers.

The relationships between inventory and throughput, and inventory and operating expense are defined as follows: As everyone is slowed down, the gap between the first and last hiker expands. As the gap expands, inventory drops. Operational expense is decreasing every time we hurry up because we are expending additional energy just to catch up. Group of answer choices True False

Answers

Answer:

False

Explanation:

Operational expense will instead increase when we hurry up because of the additional energy spent to catch up.  The relationship between inventory and throughput is determined by time because throughput is the rate of change in inventory and is a product of Inventory divided by Time.  This agrees with the inventory formula that states that throughput multiplied by time is equal to inventory.

Sunland Co. uses the retail inventory method. The following information is available for the current year. Cost Retail Beginning inventory $ 318000 $494000 Purchases 1240000 1720000 Freight-in 23000 — Employee discounts — 8500 Net markups — 66000 Net markdowns — 86000 Sales revenue — 1620000 If the ending inventory is to be valued at approximately lower of average cost or market, the calculation of the cost ratio should be based on cost and retail of

Answers

Answer:

Sunland Co.

The calculation of the cost ratio should be based on cost and retail of $1,581,000 and $2,288,500 respectively.

Explanation:

a) Data and Calculations:

                                                 Cost            Retail      Cost to Retail Ratio

Beginning inventory           $ 318,000      $494,000

Purchases                           1,240,000      1,720,000

Freight-in                                23,000             —

Employee discounts                     —               8,500

Net markups                                 —             66,000

Goods available for sale $1,581,000    $2,288,500      69.08%

Less:

Net markdowns                           —              86,000

Sales revenue                              —         1,620,000

Estimated ending Inventory at retail      $582,500

Estimated ending Inventory

at cost                              $402,391 ($582,500 * 69.08%)

Calculation of the cost ratio = $1,581,000/$2,288,500 * 100 = 69.08%

Excellent Company has provided the following operating information for one of its divisions: Sales $100,000 Variable expenses $55,000 Contribution margin $45,000 Direct fixed expenses $35,000 Common fixed expenses allocated in proportion to sales amounts to $16,000. Based on the provided information, calculate the division's segment margin.

Answers

Answer:

See below

Explanation:

Given the above information, segment margin is computed as shown below.

Segment margin = Net sales - Cost of sales - Fixed cost

Given that;

Net sales = $100,000

Cost of sales = $55,000

Fixed cost = $35,000

Then,

Segment margin = $100,000 - $55,000 - $35,000

Segment margin = $10,000

Therefore, the division's segment margin is $10,000

If a bank holds $450,000 in required reserves, and $1.8 million in total deposits, then the deposit expansion multiplier is:______.
a. 0.25
b. 2
c. 4
d. 5
e. 10

Answers

Answer:

4

Explanation:

A bank holds 450,000 in required reserves

The bank also hold 1,800,000 in total deposits

Therefore the deposits expansion multiplier can be calculated as follows

= 1,800,000/450,000

= 4

Hence the deposits expansion multiplier is 4

Recall that since stocks have really long lives, in the video we first imagined owning a stock for only one period. In this simple, yet powerful scenario, today's stock price is the PV of next year's dividend and next year's stock price.) The stock of Alydar Oil, an all-equity firm, is currently trading at $30 per share, after just having paid a $2.60 per share dividend. The market expects a dividend of $3.30 per share to be paid one year from today. If the equity cost of capital (same as discount rate for equity) is 13% for this firm, the expected ex-dividend price (the stock price after the dividend is paid next year) in one year (t = 1) should be closest to:_______.a) $32.77b) $30.60c) $33.90d) $31.30

Answers

Answer:

Option b ($30.6) is the correct option.

Explanation:

Given:

Current price,

= $30

Required rate,

= 13%

Expected dividend,

= 3.30

Now,

The expected ex-dividend will be:

= [tex]Current \ price\times (1+ Required \ rate) - Expected \ dividend[/tex]

On putting the values, we get

= [tex]30\times (1+13 \ percent)-3.30[/tex]

= [tex]30\times 1.13-3.30[/tex]

= [tex]33.9-3.30[/tex]

= [tex]30.6[/tex] ($)

The seaport town of New Monopoly has become extremely popular with shipping companies due to its superior location. The port has become so congested that ships must wait hours every day just to dock. The mayor of New Monopoly realizes that the congestion at the port costs the shipping companies and his town money. This is an example of marginal analysis. a private good. market failure. a recession.

Answers

Answer:

Market failure.

Explanation:

In this scenario, the port became so congested such that ships now have to wait hours queing every day just to dock. The mayor of New Monopoly realizes that the congestion at the port costs the shipping companies and his town money. This is an example of market failure.

A market failure can be defined as a situation in which the market fails to produce an efficient level of productivity or output that is required to meet demand.

This ultimately implies that, a market failure arises when there is inefficiency in the distribution or allocation of goods and services in a free market. Thus, the demand of the consumer of these goods and services are not being met with the level of supply (output) required i.e the forces of demand and supply are not efficient in producing the level of output required by the economy.

Some of the causes of market failure are imperfect information, monopoly, oligopoly, externalities etc.

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