Accounting what is their tax liabilities Great news!! Our favorite pizza shop, Joe'shad a record year. They had $4,743,823 insales. For the year they had cash operatingexpenses of $523,854. They had COGS of$1,240,000. They had depreciation of$100,000 (not counted in cash operatingexpenses), They paid interest on their bondsof $114,000. They decided to pay $52,000 individends. They also received $27,000 individend income in a company they have a45% ownership stake in, what is their taxliability?

Step 1:- Corporate Income TaxA corporation's income will be taxed according to the laws of corporate…

Answered: Great news!! Our favorite pizza shop,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Help asap please! DGE purchased a cement truck for $120,000. It is expected to last N=4 years. The $120,000 was borrowed from the bank at 10% interest per year compounded annually and payments are paid annually from DGE to the bank. The loan will be fully repaid in 4 years. CCA rate is 35%. Tax Rate is 40%. Answer the following questions with regards to Income Statements and Cash Flow Statements. Develop the cash flow/ investment including as many details as possible. What is the net cash flow over 6 years, A. If there were working capital (WC) required for this project, which year or years does it show up in the statement(s)?
Blockbuster Co is building a new state of the art cineplex at a cost of $3,500,000.They received a capital investment of $1,500,000. The remainder of funds will haveto be borrowed so they decided to issue bonds. They have issued 10.5%, 5-yearbonds. These bonds were issued on January 1st, 2020, and pay semi-annual intereston July 1st and January 1st. The bonds yield 10%. The year end is December 31st
Blockbuster Co is building a new state of the art cineplex at a cost of $3,500,000.They received a capital investment of $1,500,000. The remainder of funds will haveto be borrowed so they decided to issue bonds. They have issued 10.5%, 5-yearbonds. These bonds were issued on January 1st, 2020, and pay semi-annual intereston July 1st and January 1st. The bonds yield 10%. The year end is December 31st Calculate the proceeds from the sale of the bond. Clearly show theamount of the premium or discount and state two reasons which supportthe premium or discount calculated
Blockbuster Co is building a new state of the art cineplex at a cost of $3,500,000.They received a capital investment of $1,500,000. The remainder of funds will haveto be borrowed so they decided to issue bonds. They have issued 10.5%, 5-yearbonds. These bonds were issued on January 1st, 2020, and pay semi-annual intereston July 1st and January 1st. The bonds yield 10%. The year end is December 31st Assume that on July 1 2023, Blockbuster Co. retires the bond at a cost of1,065,000 plus accrued interest, if applicable. Prepare the journal entryto record this retirement
A corporation decides to deposit a fixed payment per quarter into an account earning 4% interest per year in order to create a sinking fund so they will have $121,000 to replace some machinery in 7 years. How much interest does the account earn in the third quarter of the fourth year?
NOTE: PLEASE ANSWER THE LAST THREE ITEMS FROM 8-10 thank you!!
Blockbuster Co is building a new state of the art Cineplex at a cost of $3,500,000. They received a capital investment of $1,500,000. The remainder of funds will have to be borrowed so they decided to issue bonds. They have issued 10.5%, 5-year bonds. These bonds were issued on January 1st, 2020, and pay semi-annual interest on July 1st and January 1st. The bonds yield 10%. The year-end is December 31st. Requirements: (Show all workings) Calculate the proceeds from the sale of the bond. Clearly, show the amount of the premium or discount and state two reasons, which support the premium or discount calculated. Compute the Present Value of Interest Payments show all steps using the formula.
Blockbuster Co is building a new state of the art Cineplex at a cost of $3,500,000. They received a capital investment of $1,500,000. The remainder of funds will have to be borrowed so they decided to issue bonds. They have issued 10.5%, 5-year bonds. These bonds were issued on January 1st, 2020, and pay semi-annual interest on July 1st and January 1st. The bonds yield 10%. The year-end is December 31st. Requirements: (Show all workings) I. Calculate the proceeds from the sale of the bond. Clearly, show the II. III. IV. amount of the premium or discount and state two reasons, which support the premium or discount calculated. Prepare a bond amortization schedule for the bond's life. Prepare all the journal entries for 2020, 2023 & 2025. Assume that on July 1 2023, Blockbuster Co. retires the bond at a cost of 1,065,000 plus accrued interest, if applicable. Prepare the journal entry to record this retirement.
Two years ago, Lou Marshall, Inc. deposited $18,125 in an investment account for the purpose of buying new equipment four years from today. Last year, it added another $20,212 to this account. The company plans on making a final deposit of $17,503 to the account today. How much will be available when it is ready to buy the equipment, assuming the company earns 13.27% APR on its invested funds? Choose the closest amount. $118,681.22 $92,502.23 $91,918.47 $104,777.28 $72,097.87
A business purchases 3 new press machines for $150,000 each or a total of $450,000. It borrows $315,000 from its local bank. The interest rate on the loan is 6%, the loan term is 7 years. The loan is a closed end credit loan. Depreciation is $45,000 per year on the presses. What is the loan to value ratio for this loan? 60% 40% 50% 70%
A bank invested $50 million in a two-year asset paying 10 percent interest per year and simultaneously issued a $50 million, one-year liability paying 8 percent interest per year to pay for it. • Is the bank short funded or long funded? • What is the bank’s net interest income in year one? • What will be the bank’s net interest income in year two if at the end of the first year all interest rates have decreased by 1.5 percent (150 basis points)?
Calculate coe now?

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