Answer:
a) equilibrium price to rise, fall, or stay the same and equilibrium quantity to rise.
Explanation:
Substitute goods are goods that can be used in place of each other.
If the price of rice rises, consumers shift to the consumption of potatoes. Price and quantity demanded of potatoes increases
The bumper harvest increases supply of potatoes. Price falls and quantity increases.
The effect on equilibrium quantity of potatoes would be indeterminate but equilibrium quantity would rise.
I hope my answer helps you
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: $15,614.68
Explanation:
Sales are projected to grow by 4.8% the next year.
= 387,000 * ( 1 + 4.8%)
= $405,576
The Projected addition to Retained Earnings = Expected Sales * Profit Margin * Retention ratio ( amount that is not paid as Dividend)
= 405,576 * 0.055 * ( 1 - 0.3)
= $15,614.68
Answer:
Lundholm, Inc
Journal Entries
Date Account Titles Debit Credit
May 1, 18 Cash $500,000
Bonds payable $500,000
(To record the bond issuance)
31 Oct, 18 Interest Expenses $22,500
(500000*9%*6/12)
Cash $22,500
(To record payment of the first semiannual period’s interest)
Nov 1, 19 Bonds payable $300,000
Loss on Bonds $3,000
Cash $303,000
(To record retirement the bonds at 101 on November 1, 2019)
