Saunders Inc., reported pretax accounting income of $100,000 during the current year, which included $10,000 interest from investments in municipal bonds. The enacted tax rate is 25%.

Prepare the appropriate journal entry to record the company’s income taxes for the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

For 2016, gourmet kitchen products reported $22 million of sales and $19 million of operating costs (including depreciation). the company has $15 million of total invested capital. its after-tax cost of capital is 10%, and its federal-plus-state income tax rate was 36%. what was the firm’s economic value added (eva), that is, how much value did management add to stockholders’ wealth during 2016?

Activity-based costing (abc) is not truly a cost collection mechanism as much as it is an inventory valuation method. the main purpose for implementing an activity-based cost system is to try to overcome some of the cost distortions that occur in traditional costing from product differences when there are variations in size and complexity. however, one of the disadvantages of utilizing abc is that the additional information gathering necessary to implement costing with that level of detail might be beyond the reach of some companies with resource or financial constraints. with this in mind, what kinds of industries or companies do you think would benefit most from using activity-based costing and why? in designing or modifying an accounting system to capture appropriate costs for abc, what considerations do you think would need to be made?

An information technology analyst believes that they are losing customers on their website who find the checkout and purchase system too complicated. she adds a one-click feature to the website to make it easier, but finds that only about 99% of the customers are using it. she decides to launch an ad awareness campaign to tell customers about the new feature in the hope of increasing the percentage. she doesn't see much of a difference, so she hires a consultant to her. the consultant selects a random sample of recent purchases, tests the hypothesis that the ads produced no change against the alternative that the percent who use the one-click feature is now greater than 99%, and finds a p-value of 0.240.24. what conclusion is appropriate?