Answer:
Upon issuance, Ozark should "Credit premium on bonds payable $100,000"
Explanation:
The bond issue price is calculated as ($10 million * $101) = $10,100,000
The bond's face value is = $10,000,000
The bond premium equals $10,100,000 - $10,000,000
Thus, the bond premium is $100,000
Journal entry
Debit Credit
Cash $10,100,000
Premium on bonds payable $100,000
Bonds payable $10,000,000
Conclusion: Therefore, upon issuance, Ozark should "Credit premium on bonds payable $100,000"
That assertion is incorrect. The three fundamental concepts inherent in the marketing idea include: - Customer satisfaction - Total company effort - Sales and Profit as objectives Ultimately, the main goal for any business is to maximize profit. High sales figures do not automatically guarantee substantial profit.
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%
