Question 3 - Chapter 14 Homework - Connect part 3
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Explanation
a.
Statutory marginal rate 32%; average rate 21.9% ($42,856 ÷ $195,700).
b.
Statutory marginal rate 32%; average rate 21.13% ($41,356 ÷ $195,700).
c.
Statutory marginal rate 24%; average rate 17.7% ($34,639 ÷ $195,700).
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Submitted
Brandon, an unmarried individual, has $195,700 taxable income. Assume the taxable year is 2022. Use
Individual Tax Rate Schedules
.
Required:
a.
Identify Brandon’s statutory marginal rate and compute average tax rate assuming Brandon is a single taxpayer.
b.
Identify Brandon’s statutory marginal rate and compute average tax rate assuming Brandon is a head of household.
c.
Identify Brandon’s statutory marginal rate and compute average tax rate assuming Brandon is a surviving spouse.
Required B
Required C
Complete this question by entering your answers in the tabs below.
Identify Brandon’s statutory marginal rate and compute average tax rate assuming Brandon is a surviving spouse.
Note: Round your "Average rate" answer to 2 decimal places (for example XX.XX%).
Required A
Required B
Required C
+/-0.01
Marginal rate
24 %
Average rate
17.70
%
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Page Company makes 30% of its sales for cash and70% on account 60% of the credit sales are collected in the month of sale, 20% in the
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556.200
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The Pizza Merchandise Company has budgeted $45,000 in sales for the month of December. The company's cost of goods sold is 30% of
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$9,500 increase.
$8,500 decrease.
$22,000 decrease.
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Entries for notes payable
Bennett Enterprises issues a $660,000, 45-day, 9%, note to Spectrum Industries for merchandise inventory.
Assume a 360-day year. If required, round your answers to the nearest dollar.If an amount box does not require an entry, leave it blank.
a. Journalize Bennett Enterprises' entries to record:
1. the issuance of the note.
2. the payment of the note at maturity.
2
b. Journalize Spectrum Industries' entries to record:
1. the receipt of the note.
2. the receipt of the payment of the note at maturity.
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Products X, Y, and Z are produced from the same process at a cost of $5,880. Five thousand pounds of raw material yields 2,600 X, 3,600 Y,
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Multiple Choice
$24.87.
$34.40.
$43.20.
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[The following information applies to the questions displayed below.]
The accounting records of Nettle Distribution show the following assets and liabilities as of December 31 for Year 1 and
Year 2.
December 31
Cash
Accounts receivable
Office supplies
Office equipment
Trucks
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Land
Accounts payable
Note payable
Equity, December 31, Year 1
Add: Owner's investment
Less: Dividends
Equity, December 31, Year 2
Year 1
$ 52,692
28,602
F2
4,512
138,498
54, 196
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75,195
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2. Compute net income for Year 2 by comparing total equity amounts for these two years and using the following information: During
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cash dividend.
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Your company is considering a new project that will require $2,000,000 of new equipment at the start of the project. The equipment will have a depreciable life of 10 years and
will be depreciated to a book value of $250,000 using straight-line depreciation. The cost of capital is 12 percent, and the firm's tax rate is 21 percent Estimate the present
value of the tax benefits from depreciation.
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$68,250
$207,646
$175,000
S988.789
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As part of its commitment to quality, the J. J. Borden manufacturing company is proposing to introduce just-in-time (JIT) production
methods. Managers of the company have an intuitive feel regarding the financial benefits associated with a change to JIT, but they
would like to have some data to inform their decision making in this regard. You are provided with the following data:
Item
Manufacturing costs as percentage of sales:
Product-level support
Variable manufacturing overhead
Direct materials
Direct manufacturing labor
Other Financial Data:
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Inventory of WIP
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Exercise 7-16 (Algo) Record amortization expense (LO7-5)
On January 1, 2024, Weaver Corporation purchased a patent for $255,000. The remaining legal life is 20 years, but the company
mates the patent will be useful for only six more years. In January 2026, the company incurred legal fees of $75,000 in
successfully defending a patent infringement suit. The successful defense did not change the company's estimate of useful life.
Weaver Corporation's year-end is December 31.
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2. What is the balance in the Patent account at the end of 2026?
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Principal Interest Rate
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Entries for notes payable
Obj. 1 A business issued a 120-day,5% note for $60,000 to a creditor on
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Presented here are the components in Bradley Company's income statement. Determine the missing amounts.
Net
Operating
Expenses
Cost of
Gross
Sales
Income
Goods Sold
Profit
Revenue
2$
$17,000
$35,000
$75,000
$86,000
$59,000
$48.000
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