Answer:
Answer for the question:
On January 1, 2018, Ameen Company purchased major pieces of manufacturing equipment for a total of $54 million. Ameen uses straight-line depreciation for financial statement reporting and deducted 100% of the equipment’s cost for income tax reporting in 2018. At December 31, 2020, the book value of the equipment was $48 million. At December 31, 2021, the book value of the equipment was $40 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2021 was $68 million. Required: 1. Prepare the appropriate journal entry to record Ameen’s 2021 income taxes. Assume an income tax rate of 25%. 2. What is Ameen’s 2021 net income?
Is given in the attachment.
Explanation:
Answer:
The total deductible amount of these expenditures is $450.
Explanation:
Half of any cost of meals and entertainment to which business discussion is associated and appropriate records kept is allowed to be deducted.
Since it is only tickets to the opera with a client following a business meeting that meet this condition, 50% of the total amount of $900 which is $450 is deductible.
Answer:it ignores cash flows following the payback period
Explanation:
The payback method of budgeting does not consider inflows of cash that occur beyond or following the payback period, thus ignoring the profitability of one project as compared to another in the sense that one project may be more valuable than another based on future cash flows.
Also, Many capital investments provide complexity of cash flows as a result of investment returns over a period of many years, which also does not align with Payback method , because of this limitation, many businesses have adjusted by using their discretion to override this rule.
Answer:
Stock out costs increase
Carrying costs decrease
Explanation:
Just in time (JIT) decreases total inventory and increases the number of deliveries made by the company's vendors.
Since the company is going to hold fewer materials and components, then the risk of an stock out increases, resulting in higher stock out costs.
The total inventory will decrease, therefore, the carrying costs will also decrease.
