Zurich Company reports pretax financial income of $70,000 for 2008. The following items cause taxable income to be different than pretax financial income.
1. Depreciation on the tax return is greater than depreciation on the income statement by $16,000.
2. Rent collected on the tax return is greater than rent earned on the income statement by $22,000.
3. Fines for pollution appear as an expense of $11,000 on the income statement.
Zurich’s tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2008.
(a) Compute taxable income and income taxes payable for 2008.
(b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2008.
(c) Prepare the income tax expense section of the income statement for 2008, beginning with the line “Income before income taxes.”
(d) Compute the effective income tax rate for 2008.
Zurich Company recently received the following information (in Swiss francs) related to the company’s December 31, 2014, statement of financial position.
Prepare the assets section of the company’s classified statement of financial position.
Zucker Inc. uses a fiscal year as the taxable year for filing its Form 1120.
a. If Zucker’s fiscal year ends on March 31, what is the filing date and the extended filing date for Zucker’s Form 1120 for the fiscal year ending March 31, 2018?
b. If Zucker’s fiscal year ends on June 30, what is the filing date and the extended filing date for Zucker’s Form 1120 for the fiscal year ending June 30, 2018?
Zopf Company sells its bonds at a premium and applies the effective-interest method in amortizing the premium. Will the annual interest expense increase or decrease over the life of the bonds? Explain.
Zoop Corporation purchased for $300,000 a 30% interest in Murphy, Inc. This investment enables Zoop to exert significant influence over Murphy. During the year Murphy earned net income of $180,000 and paid dividends of $60,000. Prepare Zoop’s journal entries related to this investment.
A zoom lens system is a combination of lenses that produces a variable magnification while maintaining fixed object and image positions. The magnification is varied by moving one or more lenses along the axis. While multiple lenses are used in practice to obtain high-quality images, the effect of zooming in on an object can be demonstrated with a simple two-lens system. An object, two converging lenses, and a screen are mounted on an optical bench. The first lens, which is to the right of the object, has a focal length of 5.00 cm, and the second lens, which is to the right of the first lens, has a focal length of 10.0 cm. The screen is to the right of the second lens. Initially, an object is situated at a distance of 7.50 cm to the left of the first lens, and the image formed on the screen has a magnification of +1.00.
(a) Find the distance between the object and the screen.
(b) Both lenses are now moved along their common axis, while the object and the screen maintain fixed positions, until the image formed on the screen has a magnification of +3.00. Find the displacement of each lens from its initial position in (a). Can the lenses be displaced in more than one way?
Zirconium has an HCP crystal structure and a density of 6.51 g/cm3.
(a) What is the volume of its unit cell in cubic meters?
(b) If the c/a ratio is 1.593, compute the values of c and a.
Zippydah Company has the following data at December 31, 2014.
The non-trading securities are held as a long-term investment.
(a) Prepare the adjusting entries to report each class of securities at fair value.
(b) Indicate the statement presentation of each class of securities and the related unrealized gain (loss) accounts.
Zippy Cola is a multinational soft drink manufacturer. The Australian plant, located at Deveton in Victoria is currently attempting to improve its performance through benchmarking activities. The best-performing plant in the Zippy Cola group is located in Seattle in the USA. The general manager of the Doveton plant has approved a bench-marking visit to the Seattle plant by a team of employees. The bench marking team consists of the manufacturing manager, two manufacturing team leaders, a member of a third manufacturing team and the plants human resources manager. The functions that the benchmarking team has identified for study include employment contracts, the operation of self-managed teams in manufacturing and the processes that have resulted in high safety performance and short cycle times at the Seattle plant.
1. What type of benchmarking is the Doveton plant planning to undertake?
2. Explain the advantages and limitations of this form of benchmarking.
3. What are the advantages of forming a multidisciplinary benchmarking team similar to the one used b the Doveton plant?