Reference no: EM131291814
Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid to satisfy warranties on its product sales. For tax purposes, the expense is deducted when the cost is incurred. At December 31, 2016, Lance has a warranty liability of $2 million and taxable income of $70 million. At December 31, 2015, Lance reported a deferred tax asset of $850,000 related to this difference in reporting warranties, its only temporary difference. The enacted tax rate is 40% each year. Required: Prepare the appropriate journal entry to record Lance’s income tax provision for 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)
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Compute the amount of earnings per share
: The net income of Foster Furniture, Inc., amounted to $1,700,000 for the current year. Compute the amount of earnings per share assuming that the shares of capital stock outstanding throughout the year consisted of:
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Completion gross profit and completed contract gross profit
: On February 1, 2010, Marsh Contractors agreed to construct a building at a contract price of $6,000,000. Marsh estimated total construction costs would be $4,000,000 and the project would be finished in 2012. Percentage-of-Completion Gross Profit and..
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Prepare a cost reconciliation schedule
: Production costs chargeable to the Finishing Department in June in Hollins Company are materials $16,775, labor $33,375, overhead $19,300. Equivalent units of production are materials 20,710 and conversion costs 19,655. Prepare a cost reconciliation ..
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Recommended for inclusion in the management report
: Compare and contrast the profitability of each doll under the new and old systems. What accomplishments have been made with US GAAP converging into IFRS? What has changed in US GAAP so far? Identifiy five subject areas or topics that have been recomm..
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Reports warranty expense by estimating the amount
: Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid to satisfy warranties on its product sales. For tax purposes, the expense is deducted when the cost is incurred. At December 31, 2016, Lance has a warr..
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Manufactures and sells three different types of binoculars
: Zoom Corporation manufactures and sells three different types of binoculars. They are referred to as Good, Better, and Best binoculars. Grinding and polishing time is limited. More time is required to grind and polish the lenses used in the Better an..
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Compute total manufacturing costs
: In Mordica Company, total material costs are $34,500, and total conversion costs are $54,500. Equivalent units of production are materials 10,000 and conversion costs 12,000. Compute the unit costs for materials and conversion costs. (Round answers t..
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Unit contribution margin break-even point units units
: Snow Cap Company has a unit selling price of $260, variable costs per unit of $120, and fixed costs of $378,000. Compute the break-even point in units using (a) the mathematical equation and (b) unit contribution margin. (a) Mathematical Equation (b)..
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Amount of under or overapplied manufacturing overhead
: For Eckstein Company, the predetermined overhead rate is 137% of direct labor cost. During the month, Eckstein incurred $104,000 of factory labor costs, of which $85,200 is direct labor and $18,800 is indirect labor. Actual overhead incurred was $121..
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