What was the company income before income taxes

Assignment Help Accounting Basics
Reference no: EM132074237

Question - On April 1 Ivy Corp began operating a service company with an initial cash investment by shareholders of $1,000,000. The company provided $3,200,000 of services in April and received full payment in May. Ivy also incurred expenses of $1,500,000 in April that was paid in June. During May, Ivy paid its shareholders cash dividends of $500,000. What was the company's income before income taxes for the two months ended May 31 under the following methods of accounting?


Cash Basis

Accrual Basis

a

$3,200,000

$1,700,000

b

$2,700,000

$1,200,000

c

$1,700,000

$1,700,000

d

$3,200,000

$1,200,000

Reference no: EM132074237

Questions Cloud

Picking a white ball : If a bag contains 5 blue balls and 6 white balls. A student who decides to pick one ball at random will have which likelihood of picking a white ball?
Represent the mean salary for the sample : Assume that the standard deviation of such salaries is ?36,500. Consider a random sample of 74 and let x represent the mean salary for the sample.
Level of significant used for test in decimals form : Many high scool students take the AP tests in different subject areas.In 2007,of the 211,693 students who took the calculus AB exam 102,598
Create a series of social media posts using the hashtag : Create a series of social media posts using the hashtag #WhyIWrite. Note the social media platform that the post is intended for (Twitter, Facebook, Instagram,)
What was the company income before income taxes : What was the company's income before income taxes for the two months ended May 31 under the following methods of accounting
Linear programming to a business scenario : The question my professor asked was to apply Linear Programming to a business scenario.
What is the price of the bonds : Union Local School District has bonds outstanding with a coupon rate of 3.8 percent paid semiannually and 29 years to maturity. What is the price of the bonds?
Examining the association between race-ethnicity : What type of analysis is most appropriate for examining the association between race/ethnicity and treatment arm in large sample size.
Determining the effect of overpopulation : The department of parks and recreation is interested in determining the effect of overpopulation on weight of birds.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Evaluate the consistency of the treatment of the option

Evaluate the consistency of the treatment of the option to extend the lease with the definition and recognition criteria of a liability specified in the Conceptual Framework

  Describe the sum-of-the years-digits method

Archie Co. purchased a framing machine for $45,000 on January 1, 2016. The machine is expected to have a four-year life, with a residual value of $5,000.

  Calculate the dividend per share of common stock

The board of directors of First Class Airlines has declared a dividend of $4,300,000. The company has 400,000 shares of preferred stock that pay $0.70.

  What amounts should be reported for prepaid insurance

What amounts should be reported for prepaid insurance and insurance expense in Toro's financial statements for the three months ended March 31, year 1?

  What are the retained earnings of dawn technologies

Equity Accounts - Following are the equity accounts for Dawn Technologies: What are the retained earnings of Dawn Technologies? How many shares are outstanding

  Accepting the offer if fixed cost eliminated

An outside supplier has offered to produce the corn chips for $20 per batch. If all fixed costs can be eliminated, how much will Hungry Bites save if it accepts the offer?

  Prepare the asset section of the classified balance sheet

prepare the asset section of the classified balance sheet listing the current assets in order of their liquidity. taken

  What rate of return did investor receive

On December 31, 2007, the investor sold the stock for $1740, terminating his 5-year investment in XLA Corporation. What rate of return did he receive?

  Comprehensive balance sheet-single-step income statement

The objective is to prepare a comprehensive balance sheet and single-step income statement presented in good form and derived from a list of various accounts.

  What is the project equivalent annual cost

The fixed asset is fully depreciated over the life of the project and has no salvage value. What is the project's equivalent annual cost, or EAC

  Clculate depreciation expense for 2012 and 2013 using the

el tapitio purchased restaurant furniture on september 1 2012 for 36400. residual value at the end of an estimated

  Prepare a classified balance sheet

Prepare a classified balance sheet. Assume that $15,232 of the note payable will be paid in 2018

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!

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