Answer:
The total cost of goods sold amounted to roughly $42,435.
Explanation:
Calculate the cost of goods as of January 1st:
2000 units at $8 each
$16,000
Calculate the cost of goods for the year 2007:
5000 units at $10 each
$50,000
Now, apply the formula for weighted-average cost:
WAC per unit = total cost of goods available for sale / total units available for sale
WAC per unit = 16,000 + 50,000 / 2000 + 5000
WAC per unit = 66,000 / 7000
WAC per unit = 9.42857..... Rounding gives a dollar value
WAC per unit = 9.43
For the cost of goods sold:
4,500 × 9.43 (note that 9.43 is rounded)
$42,435
Cash disbursement to clients: $450,000 multiplied by the contract rate of 9% times 1/2 equals $20,250.
Amortization of the premium: $11,795 divided by 6 periods results in $1,966.
Bond interest expense is calculated as: $20,250 minus $1,966 equals $18,284.
Answer:
3.57 years
Explanation:
The discounted payback period determines the time required to recover the invested amount from cumulative discounted cash flows.
You can find the explanation of how this answer was calculated in the attached image.
I hope my response assists you
Response:
To begin with, let's clarify current and deferred taxes;
Current Tax - The amount of Income Tax that needs to be paid based on taxable income during a specific timeframe.
Deferred Tax - This refers to taxes resulting from timing discrepancies. The gap between tax expenses (calculated based on accrual) and the current tax liability for a given period in accordance with Federal Income Tax Law defines deferred tax, whether it manifests as an asset or liability. This leads to the formulation: Tax Expenses + Current Tax + Deferred Tax.
Following these explanations, the resolution to the question is provided below:-
Details Amount
Income for the Current Year as per financial records $ 48,000
Taxable Income for the Current Year according to Income Tax Regulations $ 38,000
Tax Payable for the Current Year based on Federal Income Tax Regulations $ 5,600
Tax Due for the Current Year according to financial records $ 7,600
Deferred Tax Asset to record in the financial ledgers $ 2,000
Tax Rate applicable for recording Deferred Tax Asset in the financial ledgers = 20%
