Answered: 3. Pet Palace had a net income before…

3. Pet Palace had a net income before taxes of $1,175,200. Calculate the net income after taxes. (Assume the corporate tax rate is 21%.) a.$881,400 b.$928,408 c.$940,160 d.$1,057,680

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 8MC: A company has wants to earn an income of $60,000 after-taxes. If the tax rate is 32%, what must be...

See similar textbooks

Related questions

Q: We must evaluate a proposal to buy a new milling machine. The purchase price of the milling machine,…

A: Projects cash flows at year 0 will be the sum of the following Cash flows year 0 =Purchase price…

Q: QUESTION 16 The taxes most relevant for personal financial planning are O a. excise taxes. Ob.…

A: For financial planning, it is relevant for an individual to plan their taxes accordingly to ensure…

Q: Treasury bill yield is 10%, ABC company’s expected return for the next year is 18%, beta of ABC…

A: Thee market return can be calculated with the help of CAPM equation

Q: The price for one coffin is 1,500 I want to sell 1,700 and sell 12 of them in one year what would…

A: The gross profit margin is calculated as the profit on the item divided by the selling price of the…

Q: A tax-advantaged pension plan, such as a 401(k), that both employer and employee may contribute that…

A: 401(k) is a defined contribution pension plan in which employee and employer can make contributions…

Q: Can you please help me solve for the Return on Investment and Break-Even Point based on the data…

A: Return on Investment measures of the performance of an Investment. It tells us the return we have…

Q: OLVED QUESTIONS 1 and 2 and need help solving QUESTION 3 ONLY 1. A bank customer obtains a…

A: Number of payment can be calculated using the formula: NPER in the Excel.

Q: Fifteen $5,000 bonds redeemable at par bearing 8% coupons payable quarterly are sold nine years…

A: Generally bond trade at three different prices are par, discount and premium with face value.…

Q: O.FDI, II. portfolio, II. portfolio, IV. FDI

A: Investment refers to an asset that is acquired for the purpose of generating income or…

Q: LO3 Discuss the discounted payback rule and some of its shortcomings. LO4 Explain accounting rates…

A: The payback period is the amount of time it takes for the investment's benefit to recoup its cost,…

Q: Currently, the market interest rate on a bond is 10%. Yield-to-Maturity is a return you can reliaze…

A: Bonds come with a wide range of yields. There's a yield to call, a yield to worst, a current yield,…

Q: 16. Jolynn had an average daily balance of $415.22 on his May credit card statement. The bill showed…

A: The finance charge will depend upon the APR and the time period for which the balance was due.

Q: If Sherry borrows 4000 SAR now, 3000 Sar 7years from now, and 1500 SAR 8 years from now and earn at…

A: Amount borrowed in year 0 (B0) = 4000 SAR Amount borrowed in year 7 (B7) = 3000 SAR Amount borrowed…

Q: Thangmo Company is a large manufacturing firm in Cherating that was created 20 years ago by the…

A: The term financial cost refers to the amount a bank or financial institution spends to raise funds…

Q: A 1,000 bond with annual coupon is redeemable at par at the end of 10 years at a purchase price of…

A: A Bond refers to an instrument that represents the loan being made by the investor to the company…

Q: What is the coupon payment? R What is the annual coupon rate? %

A: The coupon payment is the periodic interest that the bond pays to its investors. The present value…

Q: A cotton buyer will be making a purchase of 245,000 pounds of cotton on March 1. The buyer…

A: Futures are used for hedging the cash market so that if prices rises than some loss may be prevented…

Q: The research report also revealed that the usage rates of solid waxes and liquids were different On…

A: Hi, since you have posted a question with multiple sub-parts, we will answer the first three as per…

Q: Question Danny put a $5.500 down payment on a car. He financed the remairing balance with a 70 month…

A: Car finance: Automobile finance refers to the many financial solutions that allow someone to obtain…

Q: Tricana Corporation borrowed $75,000.00 at 3% compounded monthly for 14 years to buy a warehouse.…

A: Borrowed amount is $75,000.00 Interest rate is 3% compounded monthly Time period is 14 years To…

Q: On April 1, 2020, Boston Company issued at 99 plus accrued interest 2,000 of 8% P1,000 face value…

A: A bond is said to be issued at discount when its price is less than its face value. On the other…

Q: A lease valued at $22,000 requires payments of $1,629 at the beginning of every three months. If…

A: Firstly we need to calculate number of payments for lease by using NPER function in excel.…

Q: VARIANCE MH BERHAD СВ BANK АР BANK 0.000071 0.000078 0.000048 Compare each bank variances and choose…

A: Variance is referred as the measurement of the spread, which is between the data set's numbers. An…

Q: suppose that the Matrix corporation has $120 million of assets, all financed with equity, and that…

A: The combination of debt and equity used to fund a company's assets and activities is referred to as…

Q: What was the average real return for Treasury bills for this time period? (Do not round intermediate…

A: T-bills refers to a debt securities or government bonds issued by the central bank on behalf of the…

Q: What is the amount of the required annual deposit?

A: Here we have been give the following information Funds required at the end of January…

Q: There are six laws that regulate consumer credit in the United States. The one that protects credit…

A: The Correct option is 'a. Fair Credit Reporting Act'.

Q: (a) Find the APY for money invested at 7.2% compounded continuously?

A: "Hi, Thanks for the Question. Since you asked multiple question, we will answer first question for…

Q: 2. A Machine costs $30,000 to purchase . Salvage value of the machine after 5 years = $7000.…

A: Capital recovery cost refers to those equivalent annual cost of the company which is used to recover…

Q: Croft Corporation has a target capital structure of 70 percent common stock and 30 percent debt. Its…

A: Common stock ratio (E) = 70% Debt ratio (D) = 30% Cost of equity (Ke) = 16% Cost of debt (Kd) = 8%…

Q: Investment - Total Rate of Return. Bailee purchased 475 shares of Millersview Corp. at $22.78 and…

A: The sum of capital yield and the dividend yield is known as the total yield on stocks. The dividend…

Q: Consider the following information: STF Probability of State Economy of Economy .25 .45 .30 Rate of…

A: The expected return is calculated as sum of product of probability and rate of return

Q: XYZ Company Ltd wants to invest Tk. 5 lacs in a new project. The duration of the project is 5 Years.…

A: Investment in new project = 500,000 Time period = 5 years Tax rate = 40% Cost of capital = 8%

Q: common shareholders of BFG inc. received the following dividends (per share) in recent years: $0.10…

Q: A federal government bond with a 16-year maturity and an annual coupon rate of 10% (coupons are paid…

A: Given that: Annual Coupon rate=10% then semi annual coupon rate (PMT)=10%/2=5% Future Value(FV) =…

Q: Currency $150 billion Bank reserves $400 billion $1,200 billion $2,400 billion $60 billion Checkable…

A: Currency to deposit ratio = currency/checkable deposit

Q: 2. What are the major factors involved in determining how much life insurance coverage a person or…

A: Life insurance is a contract in which an insurance company commits to pay a set sum following the…

Q: Company A has a project which is expected to provide positive cash flows of $4,400 the first year,…

A: Internal rate of return IRR is one such capital budgeting approach. For a given project or…

Q: are forecasting the amount of plane tickets. Based on your study, it is likely that airplane tickets…

A: The price of tickets increases with time and money required today would be the present value of…

Q: ) Gabrielle needs $200,000 in eight years. She has set up a sinking fund that earns 5% compounded…

A: Future Value is $200,000 Time period is 8 years Interest rate compounded monthly is 5% To Find:…

Q: 'ou've observed the following returns on Yamauchi Corporation's stock over the past ve years: –26.4…

A: Arithmetic Average Return = Sum of all years return/N Where, N = Number of periods

Q: You believe the price of Freeze Frame Co. stock is going to fall, so you short 1,000 shares at a…

A: Effective Annual return: It is the rate which is applied to the underlying speculation will give a…

Q: e Target's stock has an expected return of 22% and a volatility of 40%, Hershey's stock has an…

A: Return on portfolio and volatility of the portfolio depends on weights of different components of…

Q: Exercise 16-26 Internal Rate of Return; Uneven Cash Flows (Section 1) (LO 16-1) The trustees of the…

A: Internal rate of return is a discounted cash flow technique that calculates a project's rate of…

Q: San Jose Realty Corporation acquired a tract of land on January 1, 2020 for P20 million. Transaction…

A: San Jose Realty Corporation Acquired a tract of land on Jan 1, 2020, for P20 million Transaction…

Q: Suppose a bond has a price today of $800, a coupon rate of 4.95%, and six years remaining to…

A: A bond is a debt instrument that has a specific maturity date. The yield to maturity is the rate…

Q: Compute for the bank's income if a client will purchase USD375,000 @ P50.76 = $1 based on P50.30…

A: Purchased currency = $375,000 Transaction exchange rate $1 = P50.76 Benchmark exchange rate $1 =…

Q: million

A: Cash flow shows the inflow and outflow of cash in a particular period of time. It signifies the…

Q: Kirk, Klein & Co. requires $108,000 fifteen years from now to retire a debt. A sinking fund (a) What…

A: Loan: It is the amount due to the lender by the borrower and the borrower pays periodic payments to…

Q: rate is 0 during the entire time period, how much is the above income stream worth right now? Please…

A: Present Value of Annuity: It represents the present worth of the future annual cash flows and is…

Question

23. Pet Palace had a net income before taxes of $1,175,200. Calculate the net income after taxes. (Assume the corporate tax rate is 21%.)

a.$881,400

b.$928,408

c.$940,160

d.$1,057,680

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

A company has wants to earn an income of $60,000 after-taxes. If the tax rate is 32%, what must be the companys pre-tax income in order to have $60,000 after-taxes? A. $88,235 B. $19,200 C. $79,200 D. $143,000
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)
Domanico Co., which produces and sells biking equipment, is financed as follows: Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is (a) 600,000, (b) 800,000, and (c) 1,200,000.
LO.3, 4, 5 Contrast the income taxation of individuals and C corporations as to: a. Alternative minimum tax. b. Dividend income. c. Qualified business income deduction of 20 percent. d. Use of the cash method of accounting. e. Accounting period used for tax purposes. f. Applicable tax rates. g. Due date of the tax return.
10. Faye Faye Corporation's statement of financial performance for the year ended December 31, 20X2, shows pretax income of P 1,000,000. The following items are treated differently on the tax return and in the accounting records. Tax Return Accounting Records Rent income P 70,000 P 120,000 Depreciation Expense 280,000 220,000 Premiums on officers' life insurance 90,000 Faye Faye's rate for 20X2 is 30%. How much is the income tax expense for 20X2?
1. If a corporation’s tax return shows taxable income of $98,300 for Year 2 and a tax rate of 40%, how much will appear on the December 31, Year 2, balance sheet for “Income taxes payable” if the company has made estimated tax payments of $35,600 for Year 2? 2. An income statement that reports current tax expense of $81,800 and deferred tax benefit of $23,700 will report total income tax expense of $? If total tax expense is $47,500 and deferred tax expense is $64,900, then the current portion of the expense computation is referred to as current tax expense of $ ?