Essentials of Business Communication (with Premium Website, 1 term (6 months) Printed Access Card)
Essentials of Business Communication (with Premium Website, 1 term (6 months) Printed Access Card)
10th Edition
ISBN: 9781285858913
Author: Mary Ellen Guffey, Dana Loewy
Publisher: South-Western College Pub
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Chapter 3, Problem 15CT
Summary Introduction

To determine:

Whether it is unethical to use a passive voice like to avoid specifics.

Introduction:

Active voice: is the sentence wherein the subject perform the action and passive voice is the sentence wherein the subject is acted upon by the verb.

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Michael McDowell Co. establishes a $108 million liability at the end of 2025 for the estimated site-cleanup costs at two of its manufacturing facilities. All related closing costs will be paid and deducted on the tax return in 2026. Also, at the end of 2025, the company has $54 million of temporary differences due to excess depreciation for tax purposes, $7.56 million of which will reverse in 2026. The enacted tax rate for all years is 20%, and the company pays taxes of $34.56 million on $172.80 million of taxable income in 2025. McDowell expects to have taxable income in 2026. Assuming that the only deferred tax account at the beginning of 2025 was a deferred tax liability of $5,400,000, draft the income tax expense portion of the income statement for 2025, beginning with the line "Income before income taxes." (Hint: You must first compute (1) the amount of temporary difference underlying the beginning $5,400,000 deferred tax liability, then (2) the amount of temporary differences…

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Essentials of Business Communication (with Premium Website, 1 term (6 months) Printed Access Card)

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