What is the amount of the Deferred Tax Asset or Liability on December 31, 2016?
SNZ Inc. purchased machinery and equipment in the amount of $30,000 on January 1, 2016. SNZ plans to depreciate the asset straight-line over 20 years with no salvage value. For tax purposes these assets are to be depreciated using a capital cost allowance rate of 20%. The half-year rule applies. SNZ pays tax at a rate of 25%.
A) a Deferred Tax Asset of $1,500
B) a Deferred Tax Asset of $375
C) a Deferred Tax Liability of $1,500
D) a Deferred Tax Liability of $375
D) a Deferred Tax Liability of $375
You might also like to view...
Which of the following accounts is debited when goods are sold?
A) Cost of Goods Sold B) Finished Goods C) Work-in-Process D) Accounts Payable E) None of these.
List the powers of a bankruptcy trustee
What will be an ideal response?
John has been hired by Bubbaweiser Beer Company to purchase an airplane. He approaches
Sam who has a Cessna for sale. John does not mention that he is making this purchase on behalf of someone else. He negotiates a deal. Two weeks later, Sam learns that John did not negotiate the deal for himself, but was acting as an agent. Bubbaweiser declares bankruptcy and cannot buy the plane. John: A) Can be held liable on the contract because this was a partially disclosed agency. B) Can be held liable on the contract because this was an undisclosed agency. C) Can be held liable on the contract unless he was on a frolic and detour. D) Can be held liable on the contract simply because he is an agent. E) Cannot be held liable on the contract.
Dell Productions is a price-taker
The company produces large spools of electrical wire in a highly competitive market; thus, it uses target pricing. The current market price is $825 per unit. The company has $3,100,000 in average assets, and the desired profit is a return of 6% on assets. Assume all products produced are sold. The company provides the following information: Sales volume 100,000 units per year Variable costs $700 per unit Fixed costs $13,000,000 per year Currently the cost structure is such that the company cannot achieve its profit objective and must cut costs. If fixed costs cannot be reduced, how much reduction in variable cost per unit will be needed to achieve the desired target? (Round your answer to the nearest cent.) A) reduction in variable cost per unit by $700.00 B) reduction in variable cost per unit by $125.00 C) reduction in variable cost per unit by $5.00 D) reduction in variable cost per unit by $6.86