User Account

All Pages

What is the difference in tax that would be paid

Assignment Help Accounting Basics
Reference no: EM131785398

Question - The accountant at Paige Company is figuring out the difference in income taxes the company will pay depending on the choice of either FIFO or LIFO as an inventory costing method. The tax rate is 30% and the FIFO method will result in income before taxes of $5,460. The LIFO method will result in income before taxes of $4,935. What is the difference in tax that would be paid between the two methods?

a. $525.

b. $225.

c. $158.

d. Cannot be determined from the information provided

Reference no: EM131785398

Questions Cloud

Discuss cost-flow assumption on the income of the company : the various cost-flow assumptions used to determine the cost of goods sold? What is the impact of each cost-flow assumption on the income of the company
Discuss what were the accounts receivable days outstanding : Credit sales for the year totaled $2,000,000. What were the accounts receivable days outstanding as of the end of the year
How much will each payment be : If this account is used to set up an annuity that pays her an amount at the beginning of each 6-month period for the next 20 years.
How end-of-period noncontrolling interest balance determined : How is the end-of-period noncontrolling interest balance determined? Which of the subsidiary's account balances must always be eliminated?
What is the difference in tax that would be paid : The LIFO method will result in income before taxes of $4,935. What is the difference in tax that would be paid between the two methods
Prepare the budgetary comparison schedule : Preparing financial statements from a trial balance, Prepare the budgetary comparison schedule
Establishing a college trust for the youngest grandchild : Grandparents plan to establish a college trust for their youngest grandchild. How much is needed now so the trust, which earns 6.4%, compounded quarterly.
Determine the value of the ending inventory at december : Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is
Prepare the journal entries for cullumber for the revenue : Prepare the journal entries for Cullumber for this revenue arrangement in 2017, assuming Cullumber receives payment when installation is completed.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Governmental units that issue tax- supported debt

Which of the following is a true statement about governmental units that issue tax- supported debt to finance capital projects?

  Calculate the balance in work in process as of june

Calculate the balance in Work in Process as of June 30

  What annual payments would be equivalent to the lump sum

What annual payments would be equivalent to the lump sum up front, assuming a 6% interest rate

  Show the before-and-after effects of each option

President Joan Elbert is considering either a 10% stock dividend or a 2-for-1 stock split. She asks you to show the before-and-after effects of each option on retained earnings and total stockholders' equity.

  Patience and kindness has been the key

Patience and kindness has been the key to your business success.

  Problem regarding the project mirr

MIRR Project K costs $35,000, its expected cash inflows are $9,000 per year for 8 years, and its WACC is 10%. What is the project's MIRR?

  The note receivable dishonored in eye opener 14 is paid

The note receivable dishonored in Eye Opener 14 is paid on July 30 by the maker, plus interest for 30 days, 10%. What entry should be made to record the receipt of the payment?

  How job cost sheet for lts would differ from job

Refer to the chapter opener regarding John Hewitt and his company, Liberty Tax Service. All successful businesses track their costs, and it is especially.

  Calculate the increase in company profits

Calculate the increase in company profits if Product A is dropped

  Effective-interest amortization problem

A company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2007. Interest is paid on June 30 and December 31. The proceeds from the bonds are $19,604,145. Using effective-interest amortization, what will the carrying value of the ..

  What is nolan return on assets

Nolan manufactures, markets, and sells cellular telephones. The average total assets for Nolan is $250,000. In its most recent year.

  Income taxes paid different under ifrs compared to u.s. gaap

How is the reporting of income taxes paid different under IFRS compared to U.S. GAAP?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd