The following information is available for Buffalo Corporation for 2020. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $126,000. This difference will reverse in equal amounts of $31,500 over the years 2021–2024.
2. Interest received on municipal bonds was $10,500.
3. Rent collected in advance on January 1, 2020, totaled $63,900 for a 3-year period. Of this amount, $42,600 was reported as unearned at December 31, 2020, for book purposes.
4. The tax rates are 40% for 2020 and 35% for 2021 and subsequent years.
5. Income taxes of $309,000 are due per the tax return for 2020.
6. No deferred taxes existed at the beginning of 2020.

Required:
a. Compute taxable income.
b. Compute pretax financial income

Which of the following best explains why treasury bonds have an effect on the size of the money supply? a. the amount of treasury bonds in circulation affects both unemployment and inflation. b. the government can spend more money and charge lower taxes by using treasury bonds. c. the federal reserve bank can buy and sell these bonds to raise or lower bank deposits. d. the interest paid on treasury bonds influences the interest rates charged by private banks. 2b2t

Consider the scenario below and let us know if you believe lauren smith's actions to be ethical. let us know why or why not. lauren smith is the controller for sports central, a chain of sporting goods stores. she has been asked to recommend a site for a new store. lauren has an uncle who owns a shopping plaza in the area of town where the new store is to be located, so she decides to contact her uncle about leasing space in his plaza. lauren also contacted several other shopping plazas and malls, but her uncle’s store turned out to be the most economical place to lease. therefore, lauren recommended locating the new store in her uncle’s shopping plaza. in making her recommendation to management, she did not disclose that her uncle owns the shopping plaza. if management decided to go with lauren's uncle's plaza, what additional information would be needed in the financial statements?

Anew firm is developing its business plan. it will require $615,000 of assets, and it projects $450,000 of sales and $355,000 of operating costs for the first year. management is reasonably sure of these numbers because of contracts with its customers and suppliers. it can borrow at a rate of 7.5%, but the bank requires it to have a tie of at least 4.0, and if the tie falls below this level the bank will call in the loan and the firm will go bankrupt. what is the maximum debt ratio the firm can use? (hint: find the maximum dollars of interest, then the debt that produces that interest, and then the related debt ratio.)a. 41.94%b. 44.15%c. 46.47%d. 48.92%e. 51.49%