Pennington Oil is in the 50% effective tax bracket. It had gross income of $470 million in
Fantastic news! We've Found the answer you've been seeking!
Question:
Pennington Oil is in the 50% effective tax bracket. It had gross income of $470 million in each of the last 2 years. In the first year, deductions were $160 million. In the second year, deductions were lower at $120 million. The difference in income taxes paid by the company in the 2 years was closest to:
(a) $10 million
(b) $20 million
(c) $50 million
(d ) $40 million
Expert Answer:
Answer rating: 100% (QA)
Correct answer is 20 million working For year 1 Gl is 470 million and ... View the full answer
Posted Date:
Students also viewed these finance questions
-
Sharon had gross income of $120,000 and nondiscretionary expenses of $32,000. She also had discretionary expenses of $10,000, and her capital expenditures on leisure items were $5,000. What is her...
-
In 2014, Pennington Corporation had net sales of $600,000 and cost of goods sold of $360,000. Operating expenses were $153,000, and interest expense was $7,500. The corporations tax rate is 30%. The...
-
In 2017, Pennington Corporation had net sales of $600,000 and cost of goods sold of $360,000. Operating expenses were $153,000, and interest expense was $7,500. The corporations tax rate is 30%. The...
-
Name the five levels of the Capability Maturity Model.
-
The idling speed of 14 gasoline-powered generators is measured with and without an oil additive that is designed to lower friction. With the additive installed, the mean change in speed was 123...
-
Assume that the client has an adequate access control plan and, based on your interviews, the access policies are operating as described. The control procedures identified by the auditor include...
-
What characteristics of the product or manufacturing process would lead a company to use a process costing system? Give two examples of companies that are likely to be using process costing. What...
-
The project manager for the project in Problem 1 has estimated the probabilities of not detecting the risks in time to react to them as follows, again on a seven-point scale: Threat 1: 4, Threat 2:...
-
3. As. Mr. Cartwright's financial advisor, would you urge him to go ahead with, or to reconsider, his anticipated expansion and his plans for additional debt financing? As the banker, would you...
-
Consider the data in Figure 5.25 for Deb?s Dance Studio: Adjustment Data 1. Insurance expired, $1,000. 2. Dance supplies on hand, $1,100. 3. Depreciation on dance equipment, $2,500. 4. Salaries...
-
Apply stream() and filter() as used in Prims to Dijkstra's algorithm. To the program below (Help me out) /* Uses AtomicInteger for in_count */ import java.util.List; import java.util.ArrayList;...
-
he ages of first graders on September 1 at Garden Elementary School are uniformly distributed from 5.8 to 7.4 years. a) Find the mean age of first graders at the school on September 1. b) Find the...
-
This week's discussion fits nicely with the past few chapters on GDP and Economic Growth. In your chapter homework you will be looking at GDP calculations, growth rates, per capital GDP, and...
-
Show Me How Print Item AC... C CengageNOWv2 | Online teac Missing amounts from balance sheet and income statement data One item is omitted in each of the following summaries of balance sheet and...
-
21. Horseradish Sauces Sally has a recipe that calls for horseradish sauce that is 45% pure horseradish. At the grocery store she finds one horseradish sauce that is 30% pure horseradish and ranother...
-
In the last few years, there have been talk and movement to shorten working hours per week, more specifically, a model of a four-day work week has emerged. This model allows employees to work less...
-
A mass m travels along a frictionless track and goes through a loop of radius R as shown. m w R m What is the minimum speed, v, the mass must have to remain in contact with the track at the top of...
-
You are standing on the top of a building and throw a ball vertically upward. After 2 seconds, the ball passes you on the way down, and 2 seconds after that, it hits the ground below. a. What is the...
-
Management is Ongoing process Social process Integrated process All the above
-
Which of the following approaches is used to study management? Art Process Science Profession
-
Which is the correct order for the process of management? Planning, organizing, staffing, directing, and controlling Planning, organizing, directing, staffing, and controlling Planning,...
Study smarter with the SolutionInn App