Uqua Inc. purchased a depreciable asset for $189,000. First-year depreciation for book purposes was $22,000, and first-year MACRS depreciation was $37,800. If Uqua's marginal tax rate is 21%, the excess tax depreciation results in a $3,318:
A. Deferred tax asset
B. Deferred tax liability
C. Permanent unfavorable book/tax difference
D. Permanent favorable book/tax difference
Answer: B
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Copyright laws apply only to printed text, not to visual aids or text or pictures on the Web
Indicate whether the statement is true or false
Mustafa Enterprises makes a variety of products that it sells to other businesses. The company's activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that ABC system are listed below:Activity Cost PoolActivity MeasureActivity RateSupporting assemblyDirect labor-hours (DLHs)$7.50per DLHProcessing batchesNumber of batches$111.65per batchProcessing ordersNumber of orders$86.00per orderServing customersNumber of customers$2,737.00per customerThe cost of serving customers, $2,737.00 per customer, is the cost of serving a customer for one year. Dahle Corporation buys only one of the company's products. The details of last year's purchases of this product are listed below: Number of units purchased 800unitsNumber of
batches 16batchesNumber of orders 4orderDirect labor-hour requirement 0.40DLHs per unitSelling price$24.25per unitDirect materials cost$7.45per unitDirect labor cost$7.85per unitAccording to the ABC system, the total cost of the activity "Supporting assembly" for this customer this past year was closest to: A. $6,000.00 B. $3.00 C. $2,400.00 D. $320.00
Mentors typically require fervent loyalty and superior performance.
Answer the following statement true (T) or false (F)