Answer? ? General Accounting Phoenix Tech failed to record unrealized losses of $45 million on its available-for-sale security investments. The company's effective tax rate is 40%. How would thiserror impact comprehensive income? (Round to 2 decimal places)A. Overstated by $45.00 millionB. Overstated by $27.00 millionC. Understated by $45.00 millionD. Unaffected

Step 1: Define Comprehensive Income ImpactComprehensive income includes net income and other…

Answered: Phoenix Tech failed to record…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 3P

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A company failed to record unrealized gains of $28 million on its available for sale debt security investments. Its tax rate is 25%. As a result of this error, comprehensive income would be:
Bramble Inc. has an investment in available-for-sale securities of $ 68000. This investment experienced an unrealized loss of $ 5800 during the current year. Assuming a 30% tax rate, the effect of this loss on comprehensive income will be a.no effect. b. $ 20400 decrease. c. $ 68000 increase. d. $ 4060 decrease.
Assume that The Bell Company operates in an industry for which NOL carryback is allowed. The Bell Company had the following operating results: Year Income (loss) Tax rate Income tax 2018 40,000 25 % 10,000 2019 40,000 25 % 10,000 2020 50,000 30 % 15,000 2021 (130,000 ) 30 % 0 What is the Deferred tax Asset in 2021?
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12. Arreaga Corp. has a tax rate of 40 percent and income before non-operating items of €262,000. It also has the following items (gross amounts). € 37,000 101,000 Unusual loss Discontinued operations loss Gain on disposal of equipment Change in accounting principle increasing prior year's income 8,000 53,000 What is the amount of income tax expense Arreaga would report on its income statement? а. €104,800 b. €93,200 c. €111,200 d. €74,000
Nicholas Health Systems recently reported an EBITDA of $25.0 million and net income of $15.8 million. It had $2.0 million of interest expense, and its federal tax rate was 21% (ignore any possible state corporate taxes). What was its charge for depreciation and amortization?
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Problem related to financial accounting: Meric Mining Inc. recently reported $16,300 of sales, $7,900 in operating costs other than depreciation, and $1,600 in depreciation. The company had no amortization charges, it had outstanding $6,550 of bonds that carry a 6.50% interest rate, and its federal-plus-state income tax rate was 40%. How much was the firm's net income after taxes? Meric uses the same depreciation expense for tax and stockholder reporting purposes. Answer this question
What was it's charges for depression and amortization

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