Information for kent corp. for the year 2016: reconciliation of pretax accounting income and taxable income: pretax accounting income $180,900

permanent differences (15,500)

165,400

temporary difference-depreciation (12,900)

taxable income $152,500

cumulative future taxable amounts all from depreciation temporary differences:

as of december 31, 2015 $13,400

as of december 31, 2016 $26,300

the enacted tax rate was 30% for 2015 and thereafter. what should be the balance in kent's deferred tax liability account as of december 31, 2016?

1. $5,360.

2. $7,890.

3. $26,300.

What are six resources for you decide which type of business to start and how to start it?

Precision dyes is analyzing two machines to determine which one it should purchase. the company requires a rate of return of 15 percent and uses straight-line depreciation to a zero book value over the life of its equipment. ignore bonus depreciation. machine a has a cost of $462,000, annual aftertax cash outflows of $46,200, and a four-year life. machine b costs $898,000, has annual aftertax cash outflows of $16,500, and has a seven-year life. whichever machine is purchased will be replaced at the end of its useful life. which machine should the company purchase and how much less is that machine's eac as compared to the other machine's

Required prepare the necessary adjusting entries in the general journal as of december 31, assuming the following: on september 1, the company entered into a prepaid equipment maintenance contract. birch company paid $3,400 to cover maintenance service for six months, beginning september 1. the payment was debited to prepaid maintenance. supplies on hand at december 31 are $3,900. unearned commission fees at december 31 are $7,000. commission fees earned but not yet billed at december 31 are $3,500. (note: debit fees receivable.) birch company's lease calls for rent of $1,600 per month payable on the first of each month, plus an annual amount equal to 1% of annual commissions earned. this additional rent is payable on january 10 of the following year. (note: be sure to use the adjusted amount of commissions earned in computing the additional rent.)