differences between the carrying values of Potential Limited’s assets and liabilities and the respective tax bases. The tax rate is 30 per cent. REQUIRED: Provide relevant journal entries at the end of 2010 and 2011 in accordance with AASB 112 Income Taxes. (6 marks) QUESTION TWO Part A Describe two principle
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calculate the yearly income tax of some individuals. All the incomes are not taxable- the one on which tax is imposed is called taxable income. For example, basic income is fully taxable whereas up to 220,000 house rent income is not taxable. Bonus, commissions, overloads all are fully taxable. In this assignment you will be given the income components and you will calculate the total tax using the following guidelines: How to calculate the yearly income tax? For example the income of one person is
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3. Molteni Motors Inc. recently reported $6 million of net income. Its EBIT was $13 million, and its tax rate was 40%. What was its interest expense? Net Income = $6,000,000 Tax rate = 40% EBT = NET Income/ (1-T) = $6,000,000/ (1-.40) = $10,000,000 EBT = EBIT – Interest Expense EBT = $13,000,000 – $10,000,000 Interest expense = $3,000,000 4. Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had $2.0 million of interest expense, and
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Accounting 301 June 9, 2014 Ethics Case 4 -7 Income statement presentation of unusual loss Financial statements are very important for many participants in the financing reporting process. High-quality financing reporting is necessary to investors and creditors in decision-making process. Their decisions and judgments depend on accuracy of information presented in those statements. For example, investors try to predict future performance based on the company’s current earnings. They want
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550,000 Costs: Fixed Costs $1,170,000 Variable Costs ($45/PD) 1,170,000 Total ($90/PD) 2,340,000 Net Income $ 210,000 Using this information, answer the following two questions: 4. What is the breakeven in patient days for this nursing home, assuming no profit is required? 5. If volume goes up 10% to 28,600 patient days and payer mix is unchanged, what will net income
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Cases in Healthcare Finance Case 11 Solution CASE 11 SOLUTION (8/3/05) Copyright © 2006 by FACHE BANGOR FAMILY PHYSICIANS Pay for Performance Case Information Type This case is nondirected, in that it does not contain a specific list of questions that students must answer. Rather, the case contains general guidance or concerns expressed by various parties that students should consider when developing their solutions. If you, as the instructor, want to convert this case to a directed
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Financial Statements Paper Part II Financial Statements Paper Part II Analyzing the company’s condition one has to utilize different tools such as those presented in the appendices, which shows that the company may have difficulty funding its proposed expansion program. Although management has outlined the available financing sources such as cash flows from operations, available cash on hand, and availability of credit facilities, these sources of financing
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Upon reviewing Haggerty’s changes to Nero Health and Racquet Club (NHRC), the following need to be considered for each. 1. Membership revenue should be recognized when the membership fee is collected. Here Baber should use the earnings based approach. For memberships using a prepaid approach, they have not earned the revenue paid at the beginning of each term although they have collected the funds. Recognizing revenue at this point is against financial reporting best practices as there is uncertainty
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organization’s target population? Low income, pregnant women, infants and children up to age 5. 2). How does the organization advertise its services to the community or target population? They have in ad in the weekly paper, there are posters on the boards at the dollar store and the pharmacy. They have information at the doctor’s clinic also. 3). Are there any barriers to service? You have to be low income and you have to prove your income with paystubs or income tax forms. 4). What written information
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March 1, 2015 Module #2 Assignment Case 4-3: 1. The deductive approach to the development of accounting theory starts with the establishment of certain objectives. After identifying the objectives, key definitions and assumptions are stated. Later on, researchers develop a structure for accomplishing the objectives from the information of the definitions and assumptions. An example of deductive theory is political economy theory. The theory emphasizes the objective of accounting to not
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