Brown Co. purchased a piece of equipment at the beginning of Year 1 for $25,000,000. Management estimates that the equipment will have a useful life of seven years and a $5,000,000 salvage value. The depreciation expense recorded for tax purposes is computed using the double-declining balance method of depreciation. The company uses the straight-line method of depreciation for reporting purposes. Calculate the amount of depreciation expense for reporting purposes for Year 4 (i. e., the fourth full year of depreciation). Then calculate the amount of depreciation expense for tax purposes for Year 4 (i. e., the fourth full year of depreciation). Required:
Will a deferred tax asset or a deferred tax liability be created (in Year 4) as a result of the depreciation recorded for tax and financial reporting purposes?

Employers hiring for entry-level positions in hospitality and tourism expect workers to

You are the manager in charge of global operations at bankglobal – a large commercial bank that operates in a number of countries around the world. you must decide whether or not to launch a new advertising campaign in the u. s. market. your accounting department has provided the accompanying statement, which summarizes the financial impact of the advertising campaign on u. s. operations. in addition, you recently received a call from a colleague in charge of foreign operations, and she indicated that her unit would lose $8 million if the u. s. advertising campaign were launched. your goal is to maximize bankglobal’s value. should you launch the new campaign? explain. pre-advertising campaign post-advertising campaign total revenues $18,610,900 $31,980,200 variable cost tv airtime 5,750,350 8,610,400 ad development labor 1,960,580 3,102,450 total variable costs 7,710,930 11,712,850 direct fixed cost depreciation – computer equipment 1,500,000 1,500,000 total direct fixed cost 1,500,000 1,500,000 indirect fixed cost managerial salaries 8,458,100 8,458,100 office supplies 2,003,500 2,003,500 total indirect fixed cost $10,461,600 $10,461,600

Two products, qi and vh, emerge from a joint process. product qi has been allocated $34,300 of the total joint costs of $55,000. a total of 2,900 units of product qi are produced from the joint process. product qi can be sold at the split-off point for $11 per unit, or it can be processed further for an additional total cost of $10,900 and then sold for $13 per unit. if product qi is processed further and sold, what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point?