Explain the reason for the difference in the tax amount.

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Answer 1

Question

Chapter 3, Problem 16DQ

a.

To determine

Explain the reason for the difference in the tax amount.

b.

To determine

Identify whether Person J’s approach is permitted, if so explain with reasons.

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Carichem Company produces sanitation products after processing specialized chemicals. The following relates to its activities:  1 Kilogram of chemicals purchased for $4000 and with an additional $2000 is processed into 400 grams of Crystals and 80 litres of a Cleaning agent. At split-off, a gram of Crystal can be sold for $2 and the Cleaning agent can be sold for $8 per litre.  At an additional cost of $800, Carichem can process the 400 grams of Crystal into 500 grams of Detergent that can be sold for $4 per gram. The 80 litres of Cleaning agent is packaged at an additional cost of $600 and made into 200 packs of Softener that can be sold for $4 per pack. Required: 1. Allocate the joint cost to the Detergent and the Softener using the following: a. Sales value at split-off method b. NRV method 2. Should Carichem have processed each of the products further? What effect does the allocation method have on this decision?

Answer 2

Question

Chapter 3, Problem 16DQ

a.

To determine

Explain the reason for the difference in the tax amount.

b.

To determine

Identify whether Person J’s approach is permitted, if so explain with reasons.

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Answer 3

Question

Chapter 3, Problem 16DQ

a.

To determine

Explain the reason for the difference in the tax amount.

b.

To determine

Identify whether Person J’s approach is permitted, if so explain with reasons.

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Answer 4

Question

Chapter 3, Problem 16DQ

a.

To determine

Explain the reason for the difference in the tax amount.

b.

To determine

Identify whether Person J’s approach is permitted, if so explain with reasons.

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Answer 5

Chapter 3, Problem 16DQ

a.

To determine

Explain the reason for the difference in the tax amount.

b.

To determine

Identify whether Person J’s approach is permitted, if so explain with reasons.

Answer 6

Chapter 3, Problem 16DQ

a.

To determine

Explain the reason for the difference in the tax amount.

Answer 7

Chapter 3, Problem 16DQ

a.

To determine

Explain the reason for the difference in the tax amount.

Answer 8

b.

To determine

Identify whether Person J’s approach is permitted, if so explain with reasons.

Answer 9

b.

To determine

Identify whether Person J’s approach is permitted, if so explain with reasons.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 3 - Prob. 1DQ Ch. 3 - Which of the following items are inclusions in...Ch. 3 - Which of the following items are exclusions from...Ch. 3 - Prob. 4DQ Ch. 3 - In choosing between taking the standard deduction...Ch. 3 - Prob. 6DQ Ch. 3 - Prob. 7DQ Ch. 3 - Prob. 8DQ Ch. 3 - Prob. 9DQ Ch. 3 - Prob. 10DQ

Explain the reason for the difference in the tax amount.

Solution Summary: The author explains that the tax table method is a structured one on the taxable income range. The tax is calculated on an average of 30,025.

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Explain the reason for the difference in the tax amount.

Identify whether Person J’s approach is permitted, if so explain with reasons.

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