Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. undefined blossom inc, a real estate developing c

undefined Blossom Inc, a real estate developing company, was accounting for its long-term contracts...

90.2K

Verified Solution

Question

Accounting

imageundefined

Blossom Inc, a real estate developing company, was accounting for its long-term contracts using the completed contract method prior to 2021. In 2021, it changed to the percentage-of-completion method. The company decided to use the same for income tax purposes. The tax rate enacted is 40%. Income before taxes under both the methods for the past three years appears below. 2019 2020 2021 Completed contract $385000 $261000 $137000 Percentage-of-completion 685000 323000 205000 Which of the following will be included in the journal entry made by Blossom to record the income effect? O A credit to Retained Earnings for $217200 O A debit to Retained Earnings for $193800 O A credit to Retained Earnings for $131800 O A debit to Retained Earnings for $131800

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A visible light spectrophotometric determination of penicillin makes use of color-forming reaction of the penicillin. If...

Chemistry
Q

Q54 (a) Describe the benefits of regarding internal colleagues as customers and/or suppliers. [3 Marks] (b) Explain why...

General Management
Q

An accountant gets paid 150 for each tax return she prepares and her goa is...

Geometry
Q

The following is the adjusted trial balance for Meaney Inc. at its year...

Accounting
Q

Period costs are classified as inventory until sold and are then expensed as Cost Of...

Accounting
Q

Carlsville Company began operations in the current year and had no prior stock investments. The...

Accounting
Q

Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Item Zeta9 are as...

Accounting
Q

What information do financial ratios offer in reviewing the financial performance of a firm and...

Accounting
Q

Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of...

Accounting
Q

On 10/19/21 Your Co. loaned X Co. $12000 on a 7.3%90 day note. Record the...

Accounting
Q

Assuming an income tax rate of 40% for all years, the net deferred tax liability...

Accounting
Q

The accounting guidelines for all countries recommend?

Accounting