Presented options for this inquiry include: a. franchises; b. licenses globally; c. pays governments to market; d. contract manufactures. The right choice is d. contract manufactures. A contract manufacturer (CM) specializes in producing goods for a client based on specific requirements. Generally, these products are branded and appear as if they were made by the client rather than the CM. This relationship is advantageous for both parties, as clients save significantly on production and operational costs, while the manufacturers benefit from a consistent workload. Under such outsourcing arrangements, the manufacturer supplies all necessary facilities, materials, and labor for the client's product line.
Answer:
Valuation account = $80,000
Explanation:
Details provided:
The valuation allowance acts as a reserve for doubtful debts.
Mentioned below:
Total Deferred tax asset = $160,000 × 50% = $80,000
Total benefited Deferred tax asset = $160,000 × 50% = $80,000
Calculating the Valuation account:
Valuation account = Total Deferred tax asset - Total benefited Deferred tax asset
Valuation account = $160,000 - $80,000
Valuation account = $80,000
