As of the beginning of the year, gratiot company recorded a valuation allowance of $200,000 against its deferred tax assets of $1,000,000. the valuation allowance relates to a net operating loss carryover from the prior year. during the year, management concludes that the valuation allowance is no longer necessary because it forecasts sufficient taxable income to absorb the nol carryover. what is the impact of management’s reversal of the valuation allowance on the company’s effective tax rate?

What are the general categories of capital budget scenarios? describe the overall decision-making context for each.

Suppose that the firm cherryblossom has an orchard they are willing to sell today. the net annual returns to the orchard are expected to be $50,000 per year for the next 20 years. at the end of 20 years, it is expected the land will sell for $30,000. calculate the market value of the orchard if the market rate of return on comparable investments is 16%.

Mai and chuck have been divorced since 2012. they have three boys, ages 6, 8, and 10. all of the boys live with mai and she receives child support from chuck. mai and chuck both work and the boys need child care before and after school. te boys attend the fun house day care center and mai paid them $2,000 and chuck paid them $3,000. mai's agi is $18,000 and chuck's is $29,000. mai will claim two of the boys as dependents. she signed form 8332 which allows chuck to claim one of the boys. who can take the child and dependent care credit?