TS
Telmo Santos
Answers (6)
TS
Answered
Use the following information to answer this question. The draft statement of financial position for Banjo Ltd as at 30 June 2021 discloses the following:
Machinery (at cost) $750 000
Less Accumulated depreciation 400 000 $350 000
On the same date, Banjo Ltd assessed the fair value of the machinery to be $400 000.
The tax rate is 30%. Depreciation rates are 10% p.a. (accounting) and 12.5% p.a. (tax) using the straight-line method.
The journal entries to adjust for the tax effect of the revaluation at 30 June 2021 is:
A) Income tax expense - OCI Dr15,000 Deferred tax liability Cr15,000\begin{array}{cccc}\text { Income tax expense - OCI } & \mathrm{Dr} & 15,000 & \\\text { Deferred tax liability } & \mathrm{Cr} & & 15,000\end{array} Income tax expense - OCI Deferred tax liability DrCr15,00015,000
B) Asset revaluation surplus Dr15,000 Income tax expense - OCI Cr15,000\begin{array}{clll}\text { Asset revaluation surplus } & \mathrm{Dr} & 15,000 & \\\text { Income tax expense - OCI } & \mathrm{Cr} & & 15,000\end{array} Asset revaluation surplus Income tax expense - OCI DrCr15,00015,000
C) Income tax expense - OCI Dr15,000 Asset revaluation surplus Cr15,000\begin{array}{rlll}\text { Income tax expense - OCI } & \mathrm{Dr} & 15,000 & \\\text { Asset revaluation surplus } & \mathrm{Cr} & & 15,000\end{array} Income tax expense - OCI Asset revaluation surplus DrCr15,00015,000
D) Income tax exp ense - OCI Dr15,000 Deferred tax liability Cr15,000 Gain on revaluation - OCI Dr50,000 Income tax expense - OCI Cr15,000 Asset revaluation surplus Cr35,000\begin{array}{cll}\text { Income tax exp ense - OCI } & \mathrm{Dr}&15,000 \\\text { Deferred tax liability } & \mathrm{Cr}&&15,000\\\\\text { Gain on revaluation - OCI } & \mathrm{Dr} & 50,000 \\\text { Income tax expense - OCI } & \mathrm{Cr} &&15,000 \\\text { Asset revaluation surplus } & \mathrm{Cr} &&35,000\end{array} Income tax exp ense - OCI Deferred tax liability Gain on revaluation - OCI Income tax expense - OCI Asset revaluation surplus DrCrDrCrCr15,00050,00015,00015,00035,000
Machinery (at cost) $750 000
Less Accumulated depreciation 400 000 $350 000
On the same date, Banjo Ltd assessed the fair value of the machinery to be $400 000.
The tax rate is 30%. Depreciation rates are 10% p.a. (accounting) and 12.5% p.a. (tax) using the straight-line method.
The journal entries to adjust for the tax effect of the revaluation at 30 June 2021 is:
A) Income tax expense - OCI Dr15,000 Deferred tax liability Cr15,000\begin{array}{cccc}\text { Income tax expense - OCI } & \mathrm{Dr} & 15,000 & \\\text { Deferred tax liability } & \mathrm{Cr} & & 15,000\end{array} Income tax expense - OCI Deferred tax liability DrCr15,00015,000
B) Asset revaluation surplus Dr15,000 Income tax expense - OCI Cr15,000\begin{array}{clll}\text { Asset revaluation surplus } & \mathrm{Dr} & 15,000 & \\\text { Income tax expense - OCI } & \mathrm{Cr} & & 15,000\end{array} Asset revaluation surplus Income tax expense - OCI DrCr15,00015,000
C) Income tax expense - OCI Dr15,000 Asset revaluation surplus Cr15,000\begin{array}{rlll}\text { Income tax expense - OCI } & \mathrm{Dr} & 15,000 & \\\text { Asset revaluation surplus } & \mathrm{Cr} & & 15,000\end{array} Income tax expense - OCI Asset revaluation surplus DrCr15,00015,000
D) Income tax exp ense - OCI Dr15,000 Deferred tax liability Cr15,000 Gain on revaluation - OCI Dr50,000 Income tax expense - OCI Cr15,000 Asset revaluation surplus Cr35,000\begin{array}{cll}\text { Income tax exp ense - OCI } & \mathrm{Dr}&15,000 \\\text { Deferred tax liability } & \mathrm{Cr}&&15,000\\\\\text { Gain on revaluation - OCI } & \mathrm{Dr} & 50,000 \\\text { Income tax expense - OCI } & \mathrm{Cr} &&15,000 \\\text { Asset revaluation surplus } & \mathrm{Cr} &&35,000\end{array} Income tax exp ense - OCI Deferred tax liability Gain on revaluation - OCI Income tax expense - OCI Asset revaluation surplus DrCrDrCrCr15,00050,00015,00015,00035,000
On Jul 20, 2024
D
TS
Answered
The region which satisfies all of the constraints in graphical linear programming is called the
A) area of optimal solutions.
B) area of feasible solutions.
C) profit maximization space.
D) region of optimality.
E) region of non-negativity.
A) area of optimal solutions.
B) area of feasible solutions.
C) profit maximization space.
D) region of optimality.
E) region of non-negativity.
On Jul 18, 2024
B
TS
Answered
________________ is defined as "an unconscionable or exorbitant rate of interest."
On Jun 19, 2024
Usury
TS
Answered
When the direct labor cost is recorded, which of the following entries will be made?
A) $25,580 in the Labor Rate Variance column
B) ($25,580) in the Labor Rate Variance column
C) ($25,580) in the Labor Efficiency Variance column
D) $25,580 in the Labor Efficiency Variance column
A) $25,580 in the Labor Rate Variance column
B) ($25,580) in the Labor Rate Variance column
C) ($25,580) in the Labor Efficiency Variance column
D) $25,580 in the Labor Efficiency Variance column
On Jun 17, 2024
A
TS
Answered
Statement I.Under perfect competition the firm's demand curve is set by industry-wide supply and demand.
Statement II.The perfect competitor's short-run and long-run situations are identical.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Statement II.The perfect competitor's short-run and long-run situations are identical.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
On May 19, 2024
A
TS
Answered
When the government enacts policies to make the distribution of income more equitable, it distorts incentives, alters behavior, and makes the allocation of resources less efficient.
On May 18, 2024
True