Fore farms reported a pretax operating loss of $120 million for financial reporting purposes in 2021. contributing to the loss were (a) a penalty of $12 million assessed by the environmental protection agency for violation of a federal law and paid in 2021 and (b) an estimated loss of $10 million from accruing a loss contingency. the loss will be tax deductible when paid in 2022. the enacted tax rate is 25%. there were no temporary differences at the beginning of the year and none originating in 2021 other than those described above. required: 1. prepare the journal entry to recognize the income tax benefit of the net operating loss in 2021. 2. what is the net operating loss reported in 2021 income statement? 3. prepare the journal entry to record income taxes in 2022 assuming pretax accounting income is $125 million. no additional temporary differences originate in 2022.

Plastic and steel are substitutes in the production of body panels for certain automobiles. if the price of plastic increases, with other things remaining the same, we would expect: a) the demand curve for plastic to shift to the left. b) the price of steel to fall. c) the demand curve for steel to shift to the left d) nothing to happen to steel because it is only a substitute for plastic. e) the demand curve for steel to shift to the right

Retirement investment advisors, inc., has just offered you an annual interest rate of 4.4 percent until you retire in 40 years. you believe that interest rates will increase over the next year and you would be offered 5 percent per year one year from today. if you plan to deposit $13,000 into the account either this year or next year, how much more will you have when you retire if you wait one year to make your deposit?

The east asiatic company (eac), a danish company with subsidiaries throughout asia, has been funding its bangkok subsidiary primarily with u. s. dollar debt because of the cost and availability of dollar capital as opposed to thai baht-denominated (b) debt. the treasurer of eac-thailand is considering a 1-year bank loan for $247,000.the current spot rate is b32.03 /$, and the dollar-based interest is 6.78% for the 1-year period. 1-year loans are 12.04% in baht. a. assuming expected inflation rates of 4.3 % and 1.24% in thailand and the united states, respectively, for the coming year, according to purchase power parity, what would the effective cost of funds be in thai baht terms? b. if eac's foreign exchange advisers believe strongly that the thai government wants to push the value of the baht down against the dollar by5% over the coming year (to promote its export competitiveness in dollar markets), what might the effective cost of funds end up being in baht terms? c. if eac could borrow thai baht at 13% per annum, would this be cheaper than either part (a) or part (b) above?