The Peak & Vale Accountants provides or offers
other firms and institutions with accounting services. Questions of what is ethical
involve the extent to which the Peak & Vale has an ethical duty beyond
those duties mandated by the law.
Answer:
Defining current and deferred tax first;
Current Tax - Current tax is the amount of Income Tax determined to be payable in respect of taxable income for a period.
Deferred Tax - Deferred tax is the tax effect of the timing difference. The difference between the tax expenses (which is calculated on an accrual basis) and current tax liability to be paid for a particular period as per Federal Income Tax Law is called deferred tax (asset/liability). That is why Tax Expenses + Current Tax + Deferred Tax
on the basis of the above explanations the question has been solved below:-
Particulars Amount
Current Year Income as per financial accounting $ 48,000
Current Year Taxable Income as Income Tax Laws $ 38,000
Current Year Tax Payable on Income Taxable under Federal Income Tax Laws $ 5,600
Current Year Tax Payable on Income as per financial accounting $ 7,600
Deferred Tax Asset to be recorded in Books of Accounts $ 2,000
Tax Rate to be used to record Deferred Tax Asset in Books = 20%
Answer:
news items
Explanation:
Public relations refers to the communication that the company's have with the public through media outlets, which is why they are perceived as news items. This being the case, the public sees this news item and pays attention to this alone, as opposed to other promotional communication methods such as newspapers and articles where various information is cluttered together making it difficult to focus on one thing alone.
Answer:
600 shares
Explanation:
If a 3-for-2 stock split will take place, for every 2 stocks that an investor has, he will receive three stocks. So this specific investors who owns 400 stocks will receive:
(400 / 2) x 3 = 200 x 3 = 600 stocks.
After the 3-for-2 stock split, the company will have 50% more stocks outstanding and the price of each stock should be reduced by one third. So the investor shouldn't earn any profit from this split since the market value of the investment should remain about the same (stock prices change daily whether the split takes place or not).
Answer:
vertical integration strategy
Explanation:
In supply chain management, vertical integration refers to expanding the company's operations to either include some of its vendors, distributors and retailers, or both. This way, the company will be able to control the upstream of the supply chain management (vendors) and/or the downstream (distributors and retailers).
In this case, Beatrice is advocating for a vertical integration strategy in order for the company to expand into dairy farms. This way they company will control the supply of raw milk.
