Exercise 16–1 Requirement 1 Since taxable income is less than pretax accounting income‚ a future taxable amount will occur when the temporary difference reverses. This means a deferred tax liability should be recorded to reflect the future tax consequences of the temporary difference. Income tax expense (to balance) 140‚000 Deferred tax liability ([$400‚000 – 250‚000] x 35%) 52‚500 Income tax payable ($250‚000 x 35%) 87‚500 As a result‚ net income is $260‚000: Pretax accounting
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Exercises 1. Synergy Valuation a. Cost and revenue synergies Managers of an acquiring company anticipate cost savings pretax of $50 million in the first year of the deal and $100 million the next and that thereafter the savings would grow @ inflation‚ 2%. Marginal tax rate is 30%. The firm must invest $1 billion to achieve these savings and starting in the third year must spend 5% of the pre-tax savings to sustain the rate of savings. As part of rationalization of operations‚ some assets will be
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Jaynet spends $30‚000 per year on painting supplies and storage space. She recently received two job offers from a famous marketing firm- one offer was for $110‚000 per year‚ and the other was for $80‚000. However‚ she turned both jobs down to continue a painting career. If Jaynet sells 25 paintings per year at a price of $8‚000 each: a. What are her accounting profits? Accounting profits are equal to the total amount of money taken in sales‚ income or/ and revenues minus the dollar cost of production
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C) Sales would decrease from 11450 to 9650 which is about a 30% reduction 9) Quarter 1 winter / 8.267 mill Quarter 2 spring / 12.456 mill Quarter 3 summer / 14.521 mill Quarter 4 fall / 10.987 mill Chapter 6: Problems 2‚ 7‚ 9‚ and 10 2.) One step that they could take is calculating how much the average dollar is worth compared to how much their product/services cost this will give them an estimate of how much they will profit or how much they loose. They could also make future investments
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Proteins are the building blocks of our cells. The proteins that are in our body and ingested are broken down into amino acids and used throughout the body. Our bodies need protein to provide fuel to do the basic of functions. Protein helps to give energy and helps with muscles‚ bones‚ and cells growth. There are two different types of proteins. Complete protein provides all the amino acids that are needed within the body. Incomplete proteins provide some but not all of the necessary amino
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Challenge: One Week Without Television In today’s society we find it difficult to pry ourselves away from technology. Everywhere we go we find our selves immerse within our cell phones and tablets. Even more so we rely on our television to provide us with instant entertainment. So naturally taking on a challenge that required me to remove Television from my life completely for one week would prove to be difficult. At first I thought it nothing and decided to take this challenge over thanksgiving
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AC501: Financial Accounting and Reporting Unit 3 Assignment Chapter 7 E7-5 (Recognition of profit for long-Term Contracts) Andre Agassi Construction Company began operations January 1‚ 2008. During the year‚ Andre Agassi Construction entered into a contract with Lindsey Davenport Corp. to construct a manufacturing facility. At that time‚ Agassi estimated that it would take 5 years to complete the facility at a total cost of $ 4‚ 5000‚000. The total contract price for construction of
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Week One Health Care Financial Terms WorksheetHCS/405 Version 5 | 1 | University of Phoenix Material Week One Health Care Financial Terms Worksheet Understanding health care financial terms is a prerequisite for both academic and professional success. This assignment is intended to ensure you understand some of the basic terms used in this course. Complete the worksheet below according to the following guidelines: · In the space provided‚ write each term’s definition
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Systems and Diseases Complete the table below for the required systems listed. You are required to list four to six of the main organs of each body system‚ one or two sentences explaining the function of the system itself in your own words‚ and a short list of five to six major diseases that afflict each system. This assignment is due in Week One. System Organs in the System Function of the System Major Diseases Afflicting the System Example: Immune System Thymus Lymph Nodes Skin Tonsils Bone Marrow
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Can Exercise Truly Make One Smarter TV shows‚ movies‚ have all used the theme of “brains versus brawn.” As a result many people believe that they are exclusive to one or the other. Many believe that to become strong you work out and to become smart you study. They are always separate activities and the ways in which a person builds up either are very different and exclusive to what they would like to become. This leads to the belief that when one exercises their body the only thing bulking up is
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