A company made an additional (incremental) income of $10,000 during the last week of the year. This extra income is subject to a federal taxrate of 21% and a 10% flat state tax.What is this company's effective tax rate?EditFormatTable

The effective tax rate can be calculated as under --…

Answered: A comnany made an additional…

Business

Accounting

A comnany made an additional (incremental) income of $10,000 during the last week of the year. This extra inc

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section2.A: Taxes

Problem 3P

See similar textbooks

Related questions

Q: The cost of direct materials transferred into the Rolling Department of Kraus Company is $393,600.…

A: The actual objects that are constructed into a product are referred to as direct materials. A…

Q: Ms. May Putok opened her business, "Putok Accounting Service" in the month of March 2022. March 3 –…

A: Journal Entry The purpose preparing the journal entry to enter the required transaction into debit…

Q: what are the disadvantages of bill of exchange?

A: A bill of Exchange is a certificate of agreement between two parties where one party agrees to pay…

Q: Production and sales estimates for March for the Robin Co. are as follows: Estimated inventery…

A: Solution... Total sales units = 6,500 + 8,300 + 7,900 = 22,700 Ending inventory = 19,100…

Q: Which concept is applied to net income and other comprehensive income? A. Borrowed Capital B.…

Q: 16.0n October 17, Conrad Beauty Supplies bought $42,000 of goods with terms of 1/10, n/30. One-half…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: .The focal point of the accounting cycle is the a. financial statements. b. trial balance. c.…

A: Accounting cycle is the process of identifying and recording the accounting transactions of a…

Q: What is the current value of a security that pays $165,500 per year for 10 years if similar…

A: The present value of all cash flows can be used to calculate the current value of an investment.

Q: 1. An increase in revenue is on the credit side hence a decrease in expense is also on the credit…

A: The financial accounting records the transactions in the journal form in the first step.

Q: The unearned rent account has a balance of P36,000. If P4,000 of the P36,000 is unearned at the end…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: On October 1, 2020 Sheffield Corp. issued 6%, 10-year bonds with a face value of $8010000 at 104.…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Dividend payments to shareholders are classified as A. Cash outflow for financing activities B.…

A: Cash flow statement (CFS) is the one which is used to report the cash flows of the entity.

Q: The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following…

A: Introduction Manufacturing overhead budget includes all the costs related to production such as…

Q: As sales manager, lohn was grven the following static budget report in the cothing dopartment of…

A: The flexible budget is prepared on the basis of actual results and standard rates. The variance is…

Q: The following standards have been established for a raw material used in the production of product…

A: Calculation of Material Price variance Material price variance = (Standard price per lb. of…

Q: The following Income Statement information has been obtained from the books of Unlimited Liquors…

A: The net income is calculated as difference between revenue and expenses of the business.

Q: Lansing, Inc. provides the following information for one of its department's operations for June (no…

A: Solution a: Lansing Inc. Particulars Physical units Equivalent units Prior Department…

Q: ration December 31, 2021 Net sales |Cost of goods sold Operating expenses Net operating income Net…

A: Cash flow margin means how efficiently can a company convert its sales into cash. This is a…

Q: The following data were made available from a single entry set of books of ABC Trading owned by Juan…

Q: On January 1, 2020, Bake Company sold a piece of equipment costing P1,200,000 with accumulated…

A: Here selling price is determined as follows = down payment received + Present value of non…

Q: ary 1, 2020, Levesque Co. purchased 500,000 ordinar at P14 per share, representing a 25% ownership…

A: Introduction: Investment income is described as the amount which a person or institution gains on…

Q: December 31, 2021 Net sales Cost of goods sold Operating expenses Net operating income Net income…

A: The question is related to Ratio Analysis. The debt to equity ratio is calculated with the help of…

Q: е. Compute the rent income. f. Compute the gain on sale of equipment. g. Compute the expenses

A: As per the norms of Bartleby, in case of multiple parts been asked for a single question, only…

Q: .All of the following affect the owner’s equity except

A: given All of the following affect the owner’s equity except is

Q: Sophie Gowna, 47 years old, works for an Ontario company with a Bi-weekly pay cycle. She earns $18.5…

A: Introduction Insurable earning is maximum amount of earnings reported in earning statement or wage…

Q: Q1 (a) Identify each of the following cash items whether it is fixed cost, variable cost, sunk cost,…

A: Based on their nature, Cost can be classified as under: Fixed Variable Semi Variable Sunk…

Q: 2. You bought a $30,000.00 machine with $6,000.00 down payment and agreed to pay for the rest at 1%…

A: The question is based on the concept of Financial Management. Annuity refers to the amount of equal…

Q: 1/ife X (cost-Salvage) 2/ife X Cost-Salvage double of the depreciation amount as calculated under…

A: Introduction:- It is one of the depreciation method A double-declining balance method is an…

Q: Number of Direct Labor Hours Machine Hours Product Units Per Unit Per Unit Blinks 1,037 3 7 Dinks…

A: Formula: Total machine hours = Number of units x Machine hours per unit

Q: e. Required: Using the new assumptions described above, complete the following requirements: 1.

A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…

Q: Derrick Iverson is a divisional manager for Holston Company. His annual pay raises are largely…

A: Net present value is the excess of present value of cash inflows over cash outflows

Q: Division A of Kern Co. has sales of $350,000, cost of goods sold for $200,000, operating expenses of…

A: Return on investment = Net operating income / Invested assets where, Net operating income = sales -…

Q: Mewto Bank granted a loan to Mew Company on January 1, 2020. The interest on the loan is 12% payable…

A: The loan borrowing and the cost of loan borrowing has a proper mechanism to calculate the cost…

Q: Applied fixed manufacturing overhead to work in process inventory using the fixed portion of the…

A: Fixed Overhead Variance is the difference between the Actual Fixed Overheads Incurred and the…

Q: safety manager recommends spending $3,000 on an initiative to reduce accidents in an organization.…

A: Concept of Present value of investment ( Cash flow)

Q: Explain or illustrate before-tax cost of debt and after-tax cost of debt. 5. What are the…

A: The equity source and debt source of financing is considered to be important in capital structure.…

Q: 13. Which of the following would not result in the recording of an expense? a Receipt of a bill…

A: Introduction: Income statement: All revenues and expenses are shown in income statement. It tells…

Q: On December 31, the trial balance indicates that the supplies account has a balance, prior to the…

A: Adjusting entry means where some adjustment need to be made at the end of specified period for…

Q: On December 1, 2000, Marimar, a lessee paid P 18.000 to XYZ Company representing the rent for 3…

A: An Unearned Revenue refers to an income collected before they have actually become due and is in the…

Q: 24. A building that cost P120,000 has accumulated depreciation of P50,000. The book value of the…

A: Book value of asset is the carrying amount of asset , i.e. cost of asset less accumulated…

Q: Gold Ltd owns all the shares in Silver Ltd. On 30 June 2020, Silver Ltd has dividend declared of…

A: Introduction : The consolidation method is an investment accounting technique for combining and…

Q: record the share in the profit

A: A partnership is a form of business in which two or more persons come together with a common…

Q: Ryan Ltd. sold equipment with a book value of $80,000 for a $10,000 loss, sold Ryan Ltd. common…

A: The question is based on the concept of Cash flow statement. Cash flow from investing activities…

Q: Which is the proper way to report a contingent asset? a. As an asset b. No disclosure and no accrua…

A: As per IAS 37, Provisions, contingent liabilities and contingent assets. A contingent asset arise…

Q: Prepare the journal entry Apr. 8 Sold merchandise for $1,900, with credit terms of 1/10, n/30;…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: What are the total expenses that the tenant reimburses the landlord in an NNN lease if the property…

A: A company's expenses are how it spends before it earns a profit. This is a good indicator to compare…

Q: 27.The links between the financial statements are a. Ending capital from the statement of owner’s…

A: The financial statements comprises of income statement, statement of owners equity and Balance…

Q: Prepare Balance Sheet and Statement of Owner's Equity for Adam Investment Cooperation for the year…

A: Balance Sheet is one of the part of Financial Statements which shows the financial position of the…

Q: Use the Stockholders' Equity section of FSB's Balance Sheet to answer the questions below. FSB…

A: As per the guidelines, only three sub-parts are allowed to be solved. Please resubmit the questions…

Q: Feldpausch Corporation has provided the following data from its activity-based costing system:…

A: Net income: Net income can be ascertained from the statement of profit or loss when the charges are…

Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

A company made an additional (incremental) income of $10,000 during the last week of the year. This extra income is subject to a federal tax
rate of 21% and a 10% flat state tax.
What is this company's effective tax rate?
Edit
Format
Table

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Rhodes Corporations financial statements are shown after part f. Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions. a. What is the net operating profit after taxes (NOPAT) for 2020? b. What are the amounts of net operating working capital for both years? c. What are the amounts of total net operating capital for both years? d. What is the free cash flow for 2020? e. What is the ROIC for 2020? f. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.) Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)
What amount is payable to a state tax board if the original sales price is $3,000, and the tax rate is 3.5%?
Grevilla Corporation is a manufacturing company. The corporation has accumulated earnings of $950,000, and it can establish reasonable needs for $400,000 of that amount. Calculate the amount of the accumulated earnings tax (if any) that Grevilla Corporation is subject to for this year. $_____________
3b. A company made an additional (incremental) income of $10,000 during the last week of the year. This extra income is subject to a federal tax rate of 21% and a 10% flat state tax. What is this company's federal tax liability?
3a. A company made an additional (incremental) income of $10,000 during the last week of the year. This extra income is subject to a federal tax rate of 21% and a 10% flat state tax. What is this company's state tax liability? Edit Format Tahle
Goose Industries faces the following tax schedule. Last year the company realized $15,000,000 in operating income (EBIT). Its annual interest expense is $7,500,000. (1) Compute the company’s income taxes payable? Use the tax rate table below. (2) What was the company’s net income for the year? If a corporation's taxable income is It pays this amount on the base of the bracket Plus this percentage on the excess over the base (marginal rate) Average tax rate at top of bracket Up to $50,000 $0 15% 15.0% $50,000 – $75,000 $7,500 25% 18.3% $75,000 – $100,000 $13,750 34% 22.3% $100,000 – $335,000 $22,250 39% 34.0% $335,000 – $10,000,000 $113,900 34% 34.0% $10,000,000 – $15,000,000 $3,400,000 35% 34.3% $15,000,000 – $18,333,333 $5,150,000 38% 35.0% Over $18,333,333 $6,416,667 35% 35.0% (1) $2,436,000 (2) $4,950,000 (1) $2,550,000 (2) $4,950,000 (1) $2,550,000 (2)…
Grateful Enterprises had the following income before tax provision and effective annual tax rate for the first three quarters of the current year: 1st Quarter - 5,000,000 (30%); 2nd Quarter - 6,000,000 (30%); 3rd Quarter- 7,000,000 (25%). What amount should be reported as income tax expense in the interim income statement for the third quarter? * Your answer
Grateful Enterprises had the following income before tax provision andeffective annual tax rate for the first three quarters of the current year: 1stQuarter - 5,000,000 (30%); 2nd Quarter - 6,000,000 (30%); 3rd Quarter-7,000,000 (25%). What amount should be reported as income taxexpense in the interim income statement for the third quarter?
On December 31, 2023, XYZ Inc. has an account payable of $2,000 for operating expenses incurred during the year. These expenses are only tax deductible when paid. XYZ normally pays for its operating expenses one month after they are incurred. Assuming a 20% tax rate, these expenses will result in: Multiple Choice О A deferred tax liability of $2,000. A deferred tax liability of $400. A deferred tax asset of $400. A deferred tax asset of $2,000.
A company earns before-tax profit of 200 000. It must pay 1) 10% of its after-tax profits to Natural Conservation Fund (N) ; 2) State tax (S) of 10% (after N); 3) Federal tax (F) of 20% (after S and N). Write the system of equatios to find N,S,F and determine If it is consistent.
If the current year tax rate is 20% and a company estimates next year's tax rate will be 25%, income tax payable is calculated using the 20% rate and the desired ending balances of the deferred tax accounts are calculated using the 25% rate. • True O False
Suppose that you are an individual taxpayer who is self-employed. For the year, you projected a 10% increase from last year's gross receipts of P2,000,000. There is also an 8% increase in total cost and expenses of P900,000. In the first quarter of the year, would you signify your intention to be taxed at 8% optional gross income tax (OGIT)? Justify your answer 2. Debbie Corporation (DC) is one of the leading domestic manufacturers in the country. For the year, it has gross sales of P800,000,000, cost of sales of P160,000,000, and other expenses of P120,000,000. It also earns P500,000 interest income from the bonds it holds in Myanmar. Suppose that you are the Chief Financial Officer (CFO) of DC. Now, choose one (1) action you will take to manage the tax of DC and discuss it