8. (this last one is worth 3 points) You are thinking of opening an internet coffee shop and estimate the following cash flows. The cost of the establishment is $1.200,000 for the building and $250,000 for equipment. The business will earn $842,000 per year in revenue and have cash expenses of $538,000 per year during its five years of operation. Deprecia-tion on the building and equipment will be $80,000 per year. At the end of five years you expect to sell the coffee shop for an after-tax cash disposition value of $600,000. No oth-er cash flows will occur during the 5 years of operation. Using a 25 percent tax rate, and a 9 percent cost of money, what is the net present value of this business

If the findings and the results are not presented properly, the research completed was a waste of time and money. true false

The sec has historically raised questions regarding the independence of firms that derive a significant portion of their total revenues from one audit client or group of clients because the sec staff believes this situation causes cpa firms to

Martinez company has the following two temporary differences between its income tax expense and income taxes payable. 2017 2018 2019 pretax financial income $873,000 $866,000 $947,000 (2017' 2018, 2019) excess depreciation expense on tax return (29,400 ) (39,000 ) (9,600 ) (2017' 2018, 2019) excess warranty expense in financial income 20,000 9,900 8,300 (2017' 2018, 2019) taxable income $863,600 $836,900 $945,700(2017' 2018, 2019) the income tax rate for all years is 40%. instructions: a. prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019. b. assuming there were no temporary differences prior to 2016, indicate how deferred taxes will be reported on the 2016 balance sheet. button's warranty is for 12 months. c. prepare the income tax expense section of the income statement for 2017, beginning with the line, "pretax financial income."