BUSINESS COLLEGE

Lyons Company deducts insurance expense of $210,000 for tax purposes in 2018, but the expense is not yet recognized for accounting purposes. In 2019, 2020, and 2021, no insurance expense will be deducted for tax purposes, but $70,000 of insurance expense will be reported for accounting purposes in each of these years. Lyons Company has a tax rate of 40% and income taxes payable of $180,000 at the end of 2018. There were no deferred taxes at the beginning of 2018. Reference: Ref 19-5 What is the amount of income tax expense for 2018? A. $180,000 B. $210,000 C. $264,000 D. $252,000

Answers

Answer 1
Answer:

Answer:

The total income tax expense for 2019 =152.000. Is not available in the options given by the exercise.

Explanation:

  • Tax on insurance expense deductible for accounting purposes in 2019= 70000*40%=28.000

  • Income tax expense for 2019 = 180.000-28.000=152.000

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LO 6.3How are costs allocated in an ABC system?

Answers

Answer:

Step 1: Identify the activities that generate costs

Step 2: Now we will find cost pools and their relevant cost drivers

Step 3: Assign the cost of each activity (cost pool) on a fair basis which is cost drivers

cost assigned to total products of A = (cost pool/total units of relevant cost driver consumed) *units of cost driver consumed by total # of Products A

Step 4:  Divide the Answer from the step 3 by total units of product A produced to calculate unit cost

Step 5: Add prime cost per unit to it to calculate total unit cost of the product A

Explanation:

The costs in the ABC system are allocated to unit product on more fair basis than the tradition absorption costing which only assume one fair basis for allocation of overhead costs. ABC critisises traditional costing technique for using only one basis for absortion of Overheads.

Suppose both Mr. A and Mr. B drank 5 glasses of juices. Each glass of juice costs $4. According to the Traditional absorption costing technique each individual must pay:

(5 Juices/2)*$4=$10

But ABC says its unfair, use a more appropriate basis for cost allocation. So upon investigating we came to know that Mr. A drank 3 glasses of juice and Mr. B drank 2 glasses of juice. So Mr. A must pay $12(3*$4) and Mr. B must pay $8(2*$4). This is more appropriate or fair basis of absorbing the overhead cost to each individual and is Activity Based Costing.

Find the account balance at the end of the second period for $3,000.00 invested at 9% compounded quarterly.

Answers

Answer:

A = $3136.51875

Explanation:

Given that :

The principal = $3,000.00

Rate = 9%

Time = 6 months

Since the amount is compounded quarterly;

r = 9/4 = 2.25 %

t = 6 months = 2 quarter

Using the formula:

A = P(1+r/100)^t

A = 3000.00(1+ 2.25/100)^2

A = 3000.00( 1+ 0.0225)^2

A = 3000.00 (1.0225)^2

A = 3000.00 (1.04550625)

A = $3136.51875

During 2018, Colorado Company stock was sold for $9,400. The fair value of the stock on December 31, 2018, was Clemson Corp. stock—$19,100; Buffaloes Co. stock—$20,500. None of the equity investments result in significant influence. (a) Prepare the adjusting journal entry needed on December 31, 2017. (b) Prepare the journal entry to record the sale of the Colorado Co. stock during 2018. (c) Prepare the adjusting journal entry needed on December 31, 2018.

Answers

Explanation:

The journal entries are as follows

a. Unrealized Holding Gain or Loss Dr $1,310

                      To Fair value Adjustment  $1,310

(Being the unrealized gain or loss is recorded)

2. Cash $9,410

   Loss on Sale of Investment  $490     ($9,900 - $9,410)

                  To Equity Investment  $9,900

(Being the sale of the stock is recorded)

3. Fair value Adjustment  $1,020

             To  Unrealized Holding Gain or Loss  $1,020

(Being the fair value adjustment is recorded)

The computation is shown below:

Stock                              Cost                  Fair Value      Unrealized Gain(Loss)

Clemson Corp. Stock    $20,200           $19,410          -$790

Buffaloes Co. stock       $20,200           $20,700         $500

Net unrealized gain (loss)                                            -$290

2017                                                                                -$1,310

Fair value adjustment                                                   -$1,020

A company used straight-line depreciation for an item of equipment that cost $15,550, had a salvage value of $3,400 and a six-year useful life. After depreciating the asset for three complete years, the salvage value was reduced to $1,555 but its total useful life remained the same. Determine the amount of depreciation to be charged against the equipment during each of the remaining years of its useful life:A. $3,400.
B. $3,060.
C. $1,215.
D. $5,798.
E. $2,640.

Answers

The answer would be B

PA5. LO 6.3Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows:



It has also estimated the activities for each cost driver as follows:



How much is the overhead allocated to each unit of Generic and Label?

Answers

Answer:

The allocated overhead per unit to Generic is $1.34 and to Label is $1.25 per unit.

Explanation:

Please see attachment

Avon was known as the company that sold cosmetics door-to-door for a long time. In order to grow and reach new markets it began to sell jewelry through its door-to-door sales force. This involved marketing new products through existing channels of distribution. It also is now selling its products by mail order and has opened retail stores. Avon is an example of a company effectively using which strategy? A. product development strategy
B. diversification strategy
C. market penetration strategy

Answers

the answe is deffffffffff a

Final answer:

Avon is effectively using the diversification strategy by expanding its product offerings and distribution channels.

Explanation:

Avon is an example of a company effectively using the diversification strategy. Diversification involves entering new markets or offering new products to reach a broader range of customers. Avon expanded its product offerings from cosmetics to jewelry and adopted various distribution channels such as door-to-door sales, mail order, and retail stores to reach different customer segments.

Learn more about Diversification strategy here:

brainly.com/question/33565595

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