Income taxes are a unique expense of the corporate form of business.

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Answer 1

Textbook Question

Chapter 21, Problem 1TF

Income taxes are a unique expense of the corporate form of business.

Expert Solution & Answer

To determine

Indicate whether the given statement is true or false.

Answer to Problem 1TF

The given statement is true.

Explanation of Solution

Corporation: The form of business entity ,which is incorporated by state law into a separate legal entity, owned by stockholders, and managed by board of directors elected by stockholders, is referred to as corporation.

Description: Corporate form of organizations incur income tax expense but the sole proprietorships and partnerships do not. Corporation has to pay tax because it is recognized as a separate taxable unit. Stockholders also pay the taxes on their share of earnings from the business. Proprietors or owners pay tax on the earnings from the sole proprietorship business. Similar to sole proprietors, partners pay tax on their share of partnership earnings. Hence, the statement is true.

Conclusion

Thus, the given statement is true, in stating that the income tax expense is unique for a corporate form of business organization.

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Coronado Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher. The home model is a high-volume (54,000 units), half-gallon cylinder that holds 2 1/2 pounds of multi- purpose dry chemical at 480 PSI. The commercial model is a low-volume (10,200 units), two-gallon cylinder that holds 10 pounds of multi-purpose dry chemical at 390 PSI. Both products require 1.5 hours of direct labor for completion. Therefore, total annual direct labor hours are 96,300 or [1.5 hours x (54,000+10,200)]. Estimated annual manufacturing overhead is $1,566,090. Thus, the predetermined overhead rate is $16.26 or ($1,566,090 ÷ 96,300) per direct labor hour. The direct materials cost per unit is $18.50 for the home model and $26.50 for the commercial model. The direct labor cost is $19 per unit for both the home and the commercial models. The company's managers identified six activity cost pools and related…

Coronado Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher. The home model is a high-volume (54,000 units), half-gallon cylinder that holds 2 1/2 pounds of multi- purpose dry chemical at 480 PSI. The commercial model is a low-volume (10,200 units), two-gallon cylinder that holds 10 pounds of multi-purpose dry chemical at 390 PSI. Both products require 1.5 hours of direct labor for completion. Therefore, total annual direct labor hours are 96,300 or [1.5 hours x (54,000+ 10,200)]. Estimated annual manufacturing overhead is $1,566,090. Thus, the predetermined overhead rate is $16.26 or ($1,566,090 ÷ 96,300) per direct labor hour. The direct materials cost per unit is $18.50 for the home model and $26.50 for the commercial model. The direct labor cost is $19 per unit for both the home and the commercial models. The company's managers identified six activity cost pools and related…

Answer 2

Textbook Question

Chapter 21, Problem 1TF

Income taxes are a unique expense of the corporate form of business.

Expert Solution & Answer

To determine

Indicate whether the given statement is true or false.

Answer to Problem 1TF

The given statement is true.

Explanation of Solution

Corporation: The form of business entity ,which is incorporated by state law into a separate legal entity, owned by stockholders, and managed by board of directors elected by stockholders, is referred to as corporation.

Description: Corporate form of organizations incur income tax expense but the sole proprietorships and partnerships do not. Corporation has to pay tax because it is recognized as a separate taxable unit. Stockholders also pay the taxes on their share of earnings from the business. Proprietors or owners pay tax on the earnings from the sole proprietorship business. Similar to sole proprietors, partners pay tax on their share of partnership earnings. Hence, the statement is true.

Conclusion

Thus, the given statement is true, in stating that the income tax expense is unique for a corporate form of business organization.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 21, Problem 1TF

Income taxes are a unique expense of the corporate form of business.

Expert Solution & Answer

To determine

Indicate whether the given statement is true or false.

Answer to Problem 1TF

The given statement is true.

Explanation of Solution

Corporation: The form of business entity ,which is incorporated by state law into a separate legal entity, owned by stockholders, and managed by board of directors elected by stockholders, is referred to as corporation.

Description: Corporate form of organizations incur income tax expense but the sole proprietorships and partnerships do not. Corporation has to pay tax because it is recognized as a separate taxable unit. Stockholders also pay the taxes on their share of earnings from the business. Proprietors or owners pay tax on the earnings from the sole proprietorship business. Similar to sole proprietors, partners pay tax on their share of partnership earnings. Hence, the statement is true.

Conclusion

Thus, the given statement is true, in stating that the income tax expense is unique for a corporate form of business organization.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 21, Problem 1TF

Income taxes are a unique expense of the corporate form of business.

Expert Solution & Answer

To determine

Indicate whether the given statement is true or false.

Answer to Problem 1TF

The given statement is true.

Explanation of Solution

Corporation: The form of business entity ,which is incorporated by state law into a separate legal entity, owned by stockholders, and managed by board of directors elected by stockholders, is referred to as corporation.

Description: Corporate form of organizations incur income tax expense but the sole proprietorships and partnerships do not. Corporation has to pay tax because it is recognized as a separate taxable unit. Stockholders also pay the taxes on their share of earnings from the business. Proprietors or owners pay tax on the earnings from the sole proprietorship business. Similar to sole proprietors, partners pay tax on their share of partnership earnings. Hence, the statement is true.

Conclusion

Thus, the given statement is true, in stating that the income tax expense is unique for a corporate form of business organization.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Indicate whether the given statement is true or false.

Answer to Problem 1TF

The given statement is true.

Explanation of Solution

Corporation: The form of business entity ,which is incorporated by state law into a separate legal entity, owned by stockholders, and managed by board of directors elected by stockholders, is referred to as corporation.

Description: Corporate form of organizations incur income tax expense but the sole proprietorships and partnerships do not. Corporation has to pay tax because it is recognized as a separate taxable unit. Stockholders also pay the taxes on their share of earnings from the business. Proprietors or owners pay tax on the earnings from the sole proprietorship business. Similar to sole proprietors, partners pay tax on their share of partnership earnings. Hence, the statement is true.

Conclusion

Thus, the given statement is true, in stating that the income tax expense is unique for a corporate form of business organization.

Answer 8

Expert Solution & Answer

To determine

Indicate whether the given statement is true or false.

Answer to Problem 1TF

The given statement is true.

Explanation of Solution

Corporation: The form of business entity ,which is incorporated by state law into a separate legal entity, owned by stockholders, and managed by board of directors elected by stockholders, is referred to as corporation.

Description: Corporate form of organizations incur income tax expense but the sole proprietorships and partnerships do not. Corporation has to pay tax because it is recognized as a separate taxable unit. Stockholders also pay the taxes on their share of earnings from the business. Proprietors or owners pay tax on the earnings from the sole proprietorship business. Similar to sole proprietors, partners pay tax on their share of partnership earnings. Hence, the statement is true.

Conclusion

Thus, the given statement is true, in stating that the income tax expense is unique for a corporate form of business organization.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Indicate whether the given statement is true or false.

Answer 12

Answer to Problem 1TF

The given statement is true.

Answer 13

Explanation of Solution

Corporation: The form of business entity ,which is incorporated by state law into a separate legal entity, owned by stockholders, and managed by board of directors elected by stockholders, is referred to as corporation.

Description: Corporate form of organizations incur income tax expense but the sole proprietorships and partnerships do not. Corporation has to pay tax because it is recognized as a separate taxable unit. Stockholders also pay the taxes on their share of earnings from the business. Proprietors or owners pay tax on the earnings from the sole proprietorship business. Similar to sole proprietors, partners pay tax on their share of partnership earnings. Hence, the statement is true.

Answer 14

Conclusion

Thus, the given statement is true, in stating that the income tax expense is unique for a corporate form of business organization.

Answer 15

Ch. 21 - Income taxes are a unique expense of the corporate...Ch. 21 - Prob. 2TF Ch. 21 - Prob. 3TF Ch. 21 - Prob. 4TF Ch. 21 - Prob. 5TF Ch. 21 - Prob. 1MC Ch. 21 - Prob. 2MC Ch. 21 - Prob. 3MC Ch. 21 - Prob. 4MC Ch. 21 - Prob. 5MC

Income taxes are a unique expense of the corporate form of business.

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