(a) Complete the following income statements for the year ended December 31, 2010, by calculating the missing...
Question:
(b) Assuming there are no adjustments from the income statements to the tax return, calculate the income tax rate for each company.
(c) Provide a reason why company D has a negative income tax expense.
Transcribed Image Text:
A Company B Company CCompany DCompany E Company 500,000 Sales Cost of goods sold Gross profit Expenses: Selling expenses Administrative expenses Depreciation expense Total expenses EBIT Interest expense EBT Income tax expense Net income 850,000 7,000,000 00,000300,000 125,000 3,500,000 350,000 225,000 85,000 125,000 45,000 475,000 150,000 50,000 80,000 40,000 70,000 60,000 60,000 1,500,000 800,000 - 400,000 30,000 20,000 800,000 100,000 10,000 50,000 50,000 4,000 0,000_ (6,000) 51,000 420,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (10 reviews)
a A Company B Company C Company D Company E Company Sales 850000 775000 500000 350000 7000000 Cost of goods sold 500000 300000 300000 125000 3500000 Gross profit 350000 475000 200000 225000 3500000 Expenses Selling expenses 85000 150000 50000 70000 ...View the full answer
Answered By
Somshukla Chakraborty
I have a teaching experience of more than 4 years by now in diverse subjects like History,Geography,Political Science,Sociology,Business Enterprise,Economics,Environmental Management etc.I teach students from classes 9-12 and undergraduate students.I boards I handle are IB,IGCSE, state boards,ICSE, CBSE.I am passionate about teaching.Full satisfaction of the students is my main goal.
I have completed my graduation and master's in history from Jadavpur University Kolkata,India in 2012 and I have completed my B.Ed from the same University in 2013. I have taught in a reputed school of Kolkata (subjects-History,Geography,Civics,Political Science) from 2014-2016.I worked as a guest lecturer of history in a college of Kolkata for 2 years teaching students of 1st ,2nd and 3rd year. I taught Ancient and Modern Indian history there.I have taught in another school in Mohali,Punjab teaching students from classes 9-12.Presently I am working as an online tutor with concept tutors,Bangalore,India(Carve Niche Pvt.Ltd.) for the last 1year and also have been appointed as an online history tutor by Course Hero(California,U.S) and Vidyalai.com(Chennai,India).
4.00+
2+ Reviews
10+ Question Solved
Related Book For
Financial Management for Decision Makers
ISBN: 978-0138011604
2nd Canadian edition
Authors: Peter Atrill, Paul Hurley
Question Posted:
Students also viewed these Finance questions
-
Yost Company began its operations in the current year. It manufactures and sells only one product. During the year, Yost produced 210,000 units and sold 170,000 units at $425 each. At the beginning...
-
Complete the following income statement and vertical analysis? Marten's Family Store Income Statement For Year Ending December 31, 2013 Percent of net sales Revenue: Gross sales Sales returns and...
-
Complete the following income statement and vertical analysis. Express percents to the nearest tenth of a percent? Serpa's Gifts Income Statement For Year Ending December 31, 2012 Percent of net...
-
Ethanol reacts with sodium and forms two products which are Options: 1) Sodium ethanoate and hydrogen 2) Sodium ethanoate and oxygen 3) Sodium ethoxide and hydrogen 4) Sodium ethoxide and oxygen
-
On January 1, 2010, the Osborne Company reported the following alphabetical list of stockholders equity items: Additional paid-in capital on common stock ......... $170,000 Additional paid-in capital...
-
In Exercises explain why the Mean Value Theorem does not apply to the function on the interval [0, 6]. f(x) = |x - 3|
-
The influence of temperature on chemical equilibrium is substantiated by the (a) Arrhenius equation (b) Le Chatelier's principle (c) Van't Hoff equation (d) None of these.
-
Beta coefficients and the capital asset pricing model Katherine Wilson is wondering how much risk she must undertake to generate an acceptable return on her portfolio. The risk-free return currently...
-
Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming...
-
Vacant land has been zoned for either one 10,000square-foot five-unit condominium or two single-family homes, each with 3,000 square feet. The cost of constructing the single-family homes is $100 per...
-
The president of Fallen Down Gold Mines stated, "The company does not have sufficient cash to pay its $2 million dividend in 2010." During his speech, he said that cash inflows from operations are...
-
Jazz Inc. has the following statements of retained earnings for the years ended December 31, 2008 to December 31, 2010. Jazz Inc. has the following condensed balance sheets as at December 31 from...
-
Evaluate the integrals in Problems 15-17. \(\int_{0}^{2}\left(x-3 x^{2}ight) d x\)
-
Simplify: ww15 Provide your answer below:
-
Find the volume of the given pyramid. The base is a rectangle. The volume is (Type an integer or a decimal.) h 10 in. 13 in 15 in.
-
Problem 1: Consider the following Huffman coding table. Huffman Code 00 11 010 0110 0111 1000 Character A E T CL SR 1011 10010 10011 1 101000 N 101001 F 101010 H D 2 x 5 10 points 101011 Based on...
-
Compute hit ratio for paging in memory management?
-
A break point A) occurs when we get so frustrated trying to solve a programming problem we just quit B) when a number is to large to fit in its declared data type C) a marker to tell the debugger to...
-
Why would countries with far larger oil reserves and current outputs be less likely to cheat on OPEC and more likely to be pricing moderates than smaller members with more limited reserves?
-
Prepare a stock card using the following information A company is registered for GST which it pays quarterly, assume GST was last paid on the 30th of June 2019. It uses weighted average cost...
-
In estimating the costs of products, manufacturers usually identify direct material, direct labour and manufacturing overhead costs. What modifications may be made to these classifications in...
-
Which is the opposite of incurring an expense? a. Incurring an opportunity cost b. Incurring a fixed cost c. Incurring a mixed cost d. Incurring a step cost
-
Amsterdam Ltd and Berlin Ltd are both engaged in retailing, but they seem to take a different approach to it according to the following information: Required: Describe what this information indicates...
-
When owning and operating any business, whether it's a caf or a pool cleaning business, it's very important that you know exactly what your income and expenditure is. Is your business making money or...
-
Resources Unlimited Corporation was formed in 1985 through the merger of two natural pipeline companies. The result was the largest gas distribution network in the United States, with 38,000 miles of...
-
Toyota was the world's first automobile manufacturer to produce more than 10 million vehicles per year, which it has done since 2012, when it also reported the production of its 200-millionth...
Study smarter with the SolutionInn App