Which state boeing choose based upon tax considerations

Assignment Help Accounting Basics
Reference no: EM132735685

Question: Boeing is considering opening a plant in one of two neighboring states, Oregon or California.

Let's just say, California has a corporate tax rate of 15%. If operated in this state, the plant is expected to generate $1,200,000 pretax profit.

In Oregon state has a corporate tax rate of 5% and operation in Oregon state, the plant is expected to generate $1,085,000 of pretax profit.

Which state should Boeing choose based upon tax considerations only?

Why do you think the plant in the state with a lower tax rate would produce a lower pretax income?

Reference no: EM132735685

Questions Cloud

Prepare the lease receipts schedule for sherlock ltd : Prepare the lease receipts schedule for Sherlock Ltd (show all workings) and the journal entries in the records of Sherlock Ltd for the year
Examine web browser interface : Examine a web browser interface and describe the various forms of analogy and composite interface metaphors that have been used in its design.
Explain the major categories of internal control system : In a business organization, Accounting Information System (AIS) requires data and useful information in order for the business to operate effectively.
Determine present value of investment using seven percent : Determine the present value of this investment using a 7% annual interest rate. An investment will pay $15,300 at the end of each year
Which state boeing choose based upon tax considerations : Which state should Boeing choose based upon tax considerations only? Why do you think the plant in the state with a lower tax rate would produce a lower pretax.
What do you understand by database : What do you understand by ‘Database'? Define RDBMS. Enlist the advantages of DBMS.
Should the home lease or buy and why : Explain , Should the home lease or buy? If WHN buys the equipment, it would purchase a maintenance contract which costs $5,000 per year, payable at beginning
Calculate actuarial gain of defined benefit obligation : Calculate the actuarial gain or loss of defined benefit obligation for the period ended 30 June 2020. Please specify whether it is a gain or loss.
Explain the development process of international accounting : The IASB and the US Financial Accounting Standards Board (FASB) have been working together since 2002 to achieve convergence of IFRSs and US generally accepted.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare a statement of cash flows

Problem - Preparation of a Statement of Cash Flows and a Balance Sheet. Cash dividends of $25,000 were declared and paid

  Prepare a single-step income statement

Prepare a single-step income statement for 2018 and a classified balance sheet at December 31, 2018, assuming

  How much would you need to deposit in a savings account

1hiawatha corp is considering the purchase of a new piece of equipment. the cost savings from the equipment would

  Assume that both companies have the same amount

Assume that both companies have the same amount of total assets. Speculate as to which company would produce the higher return on assets ratio.

  How much cash was paid for inventory

Cold and Flu Corp. reported the following information for 2012 and 2013. How much cash was paid for inventory during the 2012/13 financial year

  Determine the annual budget for office utilities

Determine the annual budget for office utilities using the data from the past 12 months shown in Figure. Utility costs are expected to increase by 8%.

  Based on the following data determine the cost

Based on the following data, determine the cost of merchandise sold for August:

  Find how much should be recorded on december for gain

On December 31, 2018, after adjusting entries were posted, Bowie Company sold a machine. How much should be recorded on December 31 for the Gain or (Loss)?

  What is the effective dollar cost of the purchase

What is the effective dollar cost of the Swiss chocolate purchase in Exercise 7? Show your calculations

  How much interest is recognized for the period

The note requires interest at 10% and principal to be paid in one year. How much interest is recognized for the period from April 1 to December 31

  What required rates of return would make you indifferent

You have finally saved $10,000 and are ready to make your first investment. What required rates of return would make you indifferent to all three options

  What would be the companys net income

If the company's variable cost per unit decreased by $3 and its volume increased by 2,000 units, what would be the company's net income

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