If Malgr Que Talks Supposition, Use the Subjunctive

Malgrà © que  (even though, despite the fact that) is a conjunctive phrase (locution conjonctive) that requires the subjunctive when theres uncertainty or supposition, as in:Il le fait malgrà © quil pleuve.Hes doing it even though its raining. Je suis venu malgrà © que je n’aie pas vraiment le temps.I came even though I really don’t have time. The Heart of the Subjunctive This goes to the heart of the subjunctive  mood, which  is used to express actions or ideas that are subjective or otherwise uncertain, such as will/wanting, emotion, doubt, possibility, necessity and judgment. The subjunctive can seem overwhelming, but the thing to remember is: the subjunctive subjectivity or  unreality. Use this mood enough and it will become second nature...and quite expressive. The French subjunctive  is nearly always found in dependent clauses introduced by  que  or  qui, and the subjects of the dependent and main clauses are usually different. For example:      Je veux que tu le fasses.   I want you to do it.  Ã‚  Ã‚  Ã‚  Il faut que nous partions.    It is necessary that we leave. Dependent Clauses Take the Subjunctive When They: Contain verbs and expressions that express someones will, an  order, a need, a piece of advice or a desireContain verbs and expressions of emotion or feeling, such as fear, happiness, anger, regret, surprise, or any other sentimentsContain verbs and expressions of doubt, possibility, supposition  and opinionContain verbs and expressions, such as  croire que  (to believe that),  dire que  (to say that),  espà ©rer que  (to hope that),  Ãƒ ªtre certain que (to be certain that),  il paraà ®t que  (it appears that),  penser que  (to think that),  savoir que  (to know that),  trouver que  (to find/think that) and  vouloir dire que (to mean that), which only require the subjunctive when the clause is  negative or interrogatory. They  do  not  take the subjunctive when they are used in the affirmative, because they express facts that are considered certain—at least in the speakers mind.Contain French  conjunctive phrases  (locutions c onjonctives), groups of two or more words that have the same function as a conjunction and imply supposition.   Contain the  negative pronouns  ne ... personne  or  ne ... rien, or the  indefinite pronouns  quelquun  or  quelque chose. Follow main clauses containing  superlatives. Note that in such cases,  the subjunctive is optional, depending on how concrete the speaker feels about what is being said.   Why Malgr Que Takes the Subjunctive Malgrà © que  is one of the conjunctive phrases (locutions conjonctives)  described in number 5, many of which are listed below. These require the subjunctive because they imply uncertainty and subjectivity; it is best to try to memorize them, although you can also decide according to the meaning of the tense. Malgrà © que  belongs to a subset of this category called opposition conjunctions, such as bien que, sauf que, sans que and others. These Conjunctive Phrases Take the Subjunctive à   condition que   provided that à   moins que  Ã‚  unless à   supposer que  Ã‚  assuming that afin que  Ã‚  so that avant que  Ã‚  before bien que  Ã‚  although de crainte que  Ã‚  for fear that de faà §on que  Ã‚  so that, in order that, in such a way that de manià ¨re que  Ã‚  so that de peur que  Ã‚  for fear that de sorte que  Ã‚  so that en admettant que  Ã‚  assuming that en attendant que  Ã‚  while, until encore que  Ã‚  even though jusquà   ce que  Ã‚  until pour que  Ã‚  so that pourvu que  Ã‚  provided that quoique  Ã‚  even though quoi que  Ã‚  whatever, no matter what sans que  Ã‚  without Additional Resources The French SubjunctiveFrench ConjunctionsThe Subjunctivator!Quiz: Subjunctive or indicative?

SWOT Business Analysis of Nike - Free Essay Example

Sample details Pages: 7 Words: 2102 Downloads: 9 Date added: 2017/06/26 Category Business Essay Type Analytical essay Did you like this example? Introduction A brand consist not only of the logo or the visual identity. It is more than the product, the advertising campaign or the slogan. It is neither only controlled by the company behind it nor only a collection of perceptions that reside in the mind of customers. Don’t waste time! Our writers will create an original "SWOT Business Analysis of Nike" essay for you Create order A brand is a collection of things and it identifies everything that sets into the mind of the customer; it is the idea and feeling a customer has about the company and product. In this paper, an analysis of the brand Nike will be conducted. The brand analysis for Nike will help to understand Nike as a brand and the context surrounding it. While Nike may not always have the direct control over its brand, it needs to identify every interaction the customer has which influences its perceptions. This paper tries to identify how Nike should maintain his strong brand position which would lead to loyal customers and an increase in customer preference and profit. The remainder of this paper will proceed as follows. First, a short introduction to Nike. The next section will discuss the public opinion on Nike. Later there will be a competition analysis and with that information a brand perceptual model will be conducted. At last this paper will identify a SWOT analysis and it will conclude with recommendations and implications for Nike. About Nike Nike was established in 1962. It all started with a cooperation between Bill Bowerman and Phil Knight, who started to sell shoes under the name à ¢Ã¢â€š ¬Ã…“Blue Ribbon Sportsà ¢Ã¢â€š ¬Ã‚ . In 1978 the name of the company was officially changed into the, now widely known, à ¢Ã¢â€š ¬Ã…“Nikeà ¢Ã¢â€š ¬Ã‚ , which is a reflection of a Greek goddess who personifies victory. Nike was established to fulfil a mission. This mission is to bring inspiration and innovation to every athlete in the world. In addition, Nikeà ¢Ã¢â€š ¬Ã¢â€ž ¢s focus is to continually seek to innovate, design and develop products to improve athletic performance. Its desire is to design products with true performance innovation and technology benefits which help the athlete perform better. Important is that Nike beliefs that if you have a body, you are an athlete and that implies that Nike is a brand for everyone. With its headquarter in the USA, shops all over the world and more than 40.000 employees, Nike i s at the moment one of the leading athletic footwear, apparel and equipment company in the world. Nike is famous for its à ¢Ã¢â€š ¬Ã…“wooshà ¢Ã¢â€š ¬Ã‚  logo, which is recognized by people all over the world. For a lot of consumers, wearing Nike is a statement and it is a brand that can be worn with honour. The success of Nike is reflected in there continuously revenue growth, which was 8% in 2013 (Nike, INC. , 2013). In addition to its mission, Nike wants the company to achieve profitable and sustainable growth. Therefore, Nike pays a lot of attention to minimize any potentially negative impact on communities or nature. They state that there aim is to challenge, push and explore ways that change the game entirely for materials, design and manufacturing. Nike does not grow just to get bigger. They grow to be better and do better. Public Opinion Since Nike is a brand that has an important position in the society, the media is reporting a lot about Nike. According to The Wall Street Journal, Nikeà ¢Ã¢â€š ¬Ã¢â€ž ¢s profits still raise because the demand for shoes and clothes grows even among people who have no intention of wearing them to the gym (Germano Stynes, 2014). This claim is confirmed by the widely available photos on the internet of fashion bloggers who are wearing Nike. It is a reflection of the fact that there is a current trend where fashion meets sporty. In addition, an interview done by Bloomberg with Mark Parker, the CEO of Nike, shows that Nike needs to move into the direction of a lifestyle brand because of the cultural shift that has put sports and fitness in a position that permeates many aspects of everyday life (Bloomberg TV, 2014). Moreover, Seeking Alpha called Nike the à ¢Ã¢â€š ¬Ã…“Goddess of Victory, with an unstoppable growth businessà ¢Ã¢â€š ¬Ã‚  (Seeking alpha , 2014). Since one of Nikeà ¢Ã ¢â€š ¬Ã¢â€ž ¢s mission is to maintain sustainable growth, the public opinion keeps a close eye on it. Business Insider reports that Nike was able to solve its sweatshops problem which was considered as an enormous problem of Nike in the beginning of the 21th century. Nike was being shamed in public for its labour practices to the point where it badly tarnished the company ´s image and hurt sales. However, according to Business Insider, Nike was able to turn this image around by showing transparency. Moreover, according to Business Insider other companies who outsource could use Nikeà ¢Ã¢â€š ¬Ã¢â€ž ¢s turnover as an example (Nisen, 2013). In todayà ¢Ã¢â€š ¬Ã¢â€ž ¢s world, where the opinion of the digital media and especially bloggers are almost becoming more important than the marketing campaigns of the brand itself, it is important to shed a light on them. A post from Emily Schuman, blogger from cupcakesandcashmere.com with more than 6 million page views a month can be more influential than an advertisement of Nike itself. Luckily for Nike, the general opinion of fashion bloggers on Nike is very positive (Schuman, 2014). Competitor analysis Nike is operating in the apparel, footwear and accessories industry which is a highly competitive market, with presence of a large number of players such as Puma, Adidas, New Balance and Asics. The apparel, footwear and accessories industry is exposed to continuous changes in consumer preferences and technology. As a result, if Nike is unable to adapt to changes quickly, it will immediately lose its market share. Comparing the results to its competitors, Nike reported total revenue increase in the third quarter of 2014 by 14.5% year on year (CSImarket, 2014). However, Nike feels the rising competition from emerging players and local players in emerging markets, which focus on niche market segments and are increasingly improving their product quality. The major threat for Nike comes from Adidas because theyà ¢Ã¢â€š ¬Ã¢â€ž ¢re best positioned to compete and have the second largest market share, which was 17% for Nike and 12% for Adidas in 2013 (Kondej, 2013). Adidas is a German brand established in 1949 that designs and manufactures sports shoes, clothing and accessories. The main marketing strategy slogan for Adidas is: à ¢Ã¢â€š ¬Ã…“Adidas is all inà ¢Ã¢â€š ¬Ã‚ , which aims to present a unified image to consumers interested in sports, fashion, street, music and pop culture. Puma is another German multinational company which is a treat to Nike, it was formed in 1924. Its mission is to be the fastest sports brand in the world. Another competitor of Nike is New Balance is an American company found in 1906. Its mission is building a global brand that athletes are proud to wear, associates are proud to create and communities are proud to host. The last competitor that will be analysed in this article is Asics, a Japanese brand found in 1949. Its mission is to become the number one brand for the sports enthusiastic. Brand Perceptual Map In order to compare Nike with its competitors it is useful to develop a brand perceptual map. Using a brand perceptual map gives the opportunity to graphically display and explain the perceptions of customers with relation to the product characteristics. For constructing the brand perception map the brands are compared by two opposite aspects pairs, fashionable and non-fashionable and low comfort with high comfort. A fashionable brand is a brand that is conforming to the latest fashion trends or sets the trends by itself. Comfortable is mind and body being at ease or make a person feel secure, happy or relaxed. In order to identify what the scores for the different brands are for the 2 dimensions, it is important to determine consumersà ¢Ã¢â€š ¬Ã¢â€ž ¢ perceptions and evaluations of the product or service in relation to its competitors. Normally, marketers determine it by asking consumers a series of questions, but for this paper it is based on my own knowledge. On the fashionable versus non-fashionable scale, Nike scores the highest since it is recognized by a lot of people for providing clothes and shoes that could also be worn outside the gym. On the other hand, Asics is a brand which focus on the practical use. Adidas and New Balance are both brands that are highly fashionable but are valued less fashionable then Nike. Puma, with its mission to be the fastest sports brand in the world, already implies that it does not really focus on the fashionable aspect. Asics scores highest on the comfortable aspect since it is well known for its high quality and comfortable sporting clothes. On the other hand New Balance is called a sports brand but its shoes are mainly sold for daily usage so it scores low on the comfortable aspect. Nike and Adidas are both recognized for their comfort, while Puma is not really perceived as highly comfortable. Figure 1. Brand Perceptual Map SWOT analysis A SWOT analysis is very useful to identify the external and internal factors that influence Nike. One of Nike ´s strength is its logo, the so called à ¢Ã¢â€š ¬Ã…“wooshà ¢Ã¢â€š ¬Ã‚ . When people see the logo without the brand name, they will immediately be able to identify it as Nike, which shows the power of the brand. Moreover, Nike is staying ahead of the technology curve, with an enormous capacity of innovation and a good RD department. On the other hand, Nike is showing some weaknesses since it is still mostly reliant on its footwear sales, although its wide range for sportswear. Moreover, Nike is facing enormous high advertisement costs. Nike is investing a lot of money into its marketing strategy and although its strategy works it comes at a high price tag. Nike is having opportunities since it is not only seen as a sporting brand but more and more customers put on Nike products just because their fashion style. Moreover, Nike can easily expand to emerging markets because of their strong brand name. For example Brazil, where the passion for sports is high, is on e of the easily target market in the future. The main treat for Nike is, as discussed before, the highly competitive market. If Nike is unable to adapt to consumer preferences quickly, it will immediately lose some of its market share to one of its competitors. Moreover, economic downturns affect consumer goods industries. The more of a population that is suffering financially, the smaller the market for Nike ´s goods. Implications and recommendations This paper identifies that Nike is a brand with a very good position. It is highly valued by its consumers and other critics and is the leader in its industry. Nike is both scoring high with its product on the comfortable and fashionable scale. Although, Nike has a very good brand positioning there are still some challenges ahead. First of all, Nike needs to make sure to react fast to consumer preferences changes. It needs to make sure that it stays innovating to be able to keep ahead of its competition. Moreover, with the current trend where fashion meets sporty, Nike needs to make sure that its products are both comfortable and fashionable to target both the consumers that want the best sporting wear and the consumers that want Nike products to wear during daily life. Moreover, Nike should acknowledge the power of Bloggers and should think to include this more in its marketing and advertisement strategy. However, after carefully examining the various aspects of the Nike brand and i ts competitors, I can conclude that the brand is facing a bright future. Still this brand analysis is just a very small step into analysing the forces that are influencing Nike. Especially, to conduct a more useful analysis, deeper market research is needed, where consumers are answering questions. References Bloomberg TV. (2014, Oct. 22). Nike CEO Parker: Im Bullish on Relationship With Apple. Retrieved Nov. 20, 2014, from Bloomberg TV: https://www.bloomberg.com/video/nike-ceo-our-connection-to-athletes-drives-company-HTGswG72R9C6dt24shLU6w.html CSImarket. (2014). Nike sales versus its competitors . Retrieved Nov. 21, 2014, from CSImarket: https://csimarket.com/stocks/compet_glance.php?code=NKE Germano, S., Stynes, T. (2014, Sept. 25). Nike Profits Rise on Higher Footwear, Apparel Sales. Retrieved Nov. 20, 2014, from The Wall Street Journal : https://online.wsj.com/articles/nike-earnings-rise-on-higher-footwear-apparel-sales-1411677987?KEYWORDS=Nike Kondej, M. (2013). The sportswear revolution: global market. Euromonitor International . Nike, INC. . (2013). ANNUAL REPORT ON FORM 10-K. Nike . Nisen, M. (2013, Sep. 09). How Nike Solved Its Sweatshop Problem. Retrieved Nov. 20, 2014, from Business Insider: https://www.businessinsider.com/how-nike-solved-its-sweatshop-problem-2013-5 Schuman, E. (2014, Feb.). New Kicks. Retrieved Nov. 20, 2014, from Cupcakes and Cashmere: https://cupcakesandcashmere.com/fashion/new-kicks Seeking alpha . (2014, Nov. 15). Nike: Goddess Of Victory, Unstoppable Growth Business. Retrieved Nov. 20, 2014, from Seeking Alpha : https://seekingalpha.com/article/2685425-nike-goddess-of-victory-unstoppable-growth-business

Chapter 18 Solutions Free Essays

EXERCISE 18-1 (10-15 minutes) Add or deduct from accounting income (a)2deduct (b)1add (c)3add (d)1add (e)2deduct (f)2deduct (g)1add (h3deduct (i)3deduct (j)1add (k)1add (l)1add EXERCISE 18-3 (15-20 minutes) (a) Accounting income$105,000 Permanent differences: Non-deductible fines 11,000 116,000 Timing differences: Excess of CCA over amortization (16,000) Excess rent collected over rent earned? 24,000 Taxable income$124,000 Current income taxes – 30% $37,200 (b) Deductible Balance(Taxable)Future TaxCurrent SheetTemporaryTax AssetLong- AccountDifferencesXRate(Liability)Term PP E($16,000)*30%($4,800) LT Unearned Rent revenue 24,00030% 7,200C Future income tax asset, Dec. 31, 20092,400 Future income tax asset before adjustment 0 Incr. in future income tax asset and future income tax benefit for 2009$2,400 *Carrying amount and tax basis are not given in the exercise, only the net difference (c)Current Income Tax Expense37,200 Income Tax Payable37,200 Future Income Tax Asset? 7,200* Future Income Tax Benefit2,400 Future Income Tax Liability? 4,800* *or a net debit to Future Income Tax Asset of $2,400 Because of a flat tax rate, these totals can be reconciled: $24,000 – $16,000) X 30% = $7,200 + ($4,800). We will write a custom essay sample on Chapter 18 Solutions or any similar topic only for you Order Now EXERCISE 18-3 (Continued) (d)Income before income taxes$105,000 Income tax expense Current$37,200 Future benefit? (2,400)? 34,800 Net income$70,200 (e) Divided by Accounting @ 30% Income Accounting income $ 105,000 31,500 30. 0% Non-deductible fines 11,000 3,300 3. 1% 34,800 33. 1% Effective tax rate ($34,800/$105,000)33. 1% (f)Current assets Future income tax asset$7,200 Non-Current liabilities Future Income Tax Liability4,800 EXERCISE 18-9 (15-20 minutes) (a) Balance Deductible Sheet (Taxable) Future Tax AccountCarryingTaxTemporaryTaxAsset Dec. 31, 2008AmountBasisDifferencesRate(Liability) Warranty liability($130,000)$0 $130,000 25%$32,500 Future income tax asset, December 31, 200832,500 Future income tax asset before adjustment 0 Increase in future income tax asset and future income tax benefit for 2008$32,500 Future years Total200920102011 Deductible temporary difference Warranty liability $130,000 $50,000 $35,000 $45,000 Tax rate enacted for the year 25%25%25% Future tax asset $32,500 $12,500 $8,750 $11,250 EXERCISE 18-9 (Continued) (b)2008 Accounting income$135,000 Permanent differences:-0- Timing difference: Warranty expense warranty costs incurred 130,000 Taxable income 265,000 Current income taxes – 25%$66,250 (c) Current Income Tax Expense66,250 Income Tax Payable 66,250 Future Income Tax Asset32,500 Future Income Tax Benefit32,500 (d)Income before income taxes$135,000 Income tax expense Current$66,250 Future benefit? (32,500) 33,750 Net income$101,250 EXERCISE 18-15 (40-45 minutes) (a) Basic Calculations of Capital Cost Allowance, Amounts and Balances: C-B (A)(B)A – B(C)Timing YearBaseCCAUCCAmort. NBVDifference 2007 $600,000 X 40 % X . $ 120,000 $ 480,000 $120,000$480,000$0 2008 480,000 X 40 % 192,000 288,000 120,000360,000(72,000) 2009 288,000 X 40 % 115,200 172,800 120,000240,0004,800 2010 172,800 X 40 % 69,120 103,680 120,000120,00050,880 2011 103,680 X 40 % 41,472 62,208120,000078,528 $537,792 (b) 20072008200920102011 Accounting income $ 340,000 $340,000 $340,000 $340,000 $ 340,000 Timing difference – (72,000) 4,8 00 50,880 78,528 Taxable income $ 340,000 $268,000 $344,800 $390,880 $ 418,528 X 34 %X 34 %X 34 %X 34 %X 34 % Income taxes payable$115,600$91,120$117,232$132,899$142,300 EXERCISE 18-15 (Continued) (c) and (d) 2007 Balance Deductible Sheet (Taxable) Future Tax AccountCarryingTaxTemporaryTaxAsset Dec. 31, 2007AmountBasisDifferencesRate(Liability) Property Plant Equipment$480,000 $480,000 034%$0 Future income tax asset/liability, December 31, 20070 Future income tax asset/liability before adjustment 0 Increase in future income tax liability and future income tax expense for 2007$0 Current Income Tax Expense115,600 Income Taxes Payable? 115,600 ($340,000 X 34%) part (a) EXERCISE 18-15 (Continued) (c) and (d) continued 008 Balance Deductible Sheet (Taxable) Future Tax AccountCarryingTaxTemporaryTaxAsset Dec. 31, 2008AmountBasisDifferencesRate(Liability) Property Plant Equipment$360,000$288,000 (72,000)34%($24,480) Future income tax liability, December 31, 2008(24,480) Future income tax liability before adjustment 0 Increase in future income tax liability and future income tax expense for 2008($ 24,480) Current Income Tax Expense91,120 Income Taxes Payable? 91,120 ($268,000 X 34%) part (a) Future Income Tax Expense24,480 Future Income Tax Liability? 24,480 EXERCISE 18-15 (Continued) (c) and (d) continued 2009 Balance Deductible Sheet (Taxable) Future Tax AccountCarryingTaxTemporaryTaxAsset Dec. 31, 2009AmountBasisDifferencesRate(Liability) Property Plant Equipment$240,000$172,800 ($67,200)34%($22,848) Future income tax liability, December 31, 2009(22,848) Future income tax liability before adjustment (24,480) Decrease in future income tax liability and future income tax benefit for 2009$1,632 2009 Current Income Tax Expense117,232 Income Taxes Payable? 117,232 ($344,800 X 34%) part (a) Future Income Tax Liability1,632 Future Income Tax Benefit? 1,632 EXERCISE 18-15 (Continued) (c) and (d) continued 2010 Balance Deductible Sheet (Taxable) Future Tax AccountCarryingTaxTemporaryTaxAsset Dec. 31, 2010AmountBasisDifferencesRate(Liability) Property Plant Equipment$120,000$103,680 ($16,320)34%($5,549) Future income tax liability, December 31, 2010(5,549) Future income tax liability before adjustment (22,848) Decrease in future income tax liability and future income tax benefit for 2010$17,299 2010 Current Income Tax Expense132,899 Income Taxes Payable? 132,899 ($390,880 X 34%) part (a) Future Income Tax Liability17,299 Future Income Tax Benefit? 17,299 EXERCISE 18-15 (Continued) (c) and (d) continued 2011 Balance Deductible Sheet (Taxable) Future Tax AccountCarryingTaxTemporaryTaxAsset Dec. 31, 2011AmountBasisDifferencesRate(Liability) Property Plant Equipment$0$62,208 $62,20834%$21,151 Future income tax asset, December 31, 201121,151 Future income tax liability before adjustment (5,549) Increase in future income tax asset and future income tax benefit for 2011$26,700 2011 Current Income Tax Expense142,300 Income Taxes Payable? 142,300 ($418,528 X 34%) part (a) Future Income Tax Liability5,549* Future Income Tax Asset21,151* Future Income Tax Benefit? 26,700 *Alternately, a debit to Future Tax Asset26,700 EXERCISE 18-15 (Continued) (e) 2007 Current Income Tax Expense115,600 Income Taxes Payable? 115,600 ($340,000 X 34%) 2008 Current Income Tax Expense91,120 Income Taxes Payable? 91,120 ($268,000 X 34%) 2009 Current Income Tax Expense117,232 Income Taxes Payable? 117,232 ($344,800 X 34%) 2010 Current Income Tax Expense132,899 Income Taxes Payable? 132,899 ($390,880 X 34%) 2011 Current Income Tax Expense142,300 Income Taxes Payable? 142,300 ($418,528 X 34%) PROBLEM 18-9 Part 1. (a) Mixed tax rates Future years 20092010201120122013Total Future taxable amounts ($300) ($300) ($300) ($200) ($100) ($1,200) Tax rate enacted for the year 30%30%30%35%35% Future tax (liability) ($90) ($90) ($90) ($70) ($35) ($375) Future years 20092010201120122013Total Future deductible amounts $1,800 $1,800 Tax rate enacted for the year 30%30%30%35%35% Future tax asset – – – $ 630 – $ 630 PROBLEM 18-9 (Continued) Part 1. (a) Balance Deductible Sheet (Taxable) Future Tax AccountCarryingTaxTemporaryTaxAsset Dec. 31, 2008Amount*Basis*DifferencesRate(Liability) Property Plant Equipment($1,200)Mixed($375) Litigation Liability1,800Mixed630 Future income tax asset, December 31, 2008255 Future income tax liability before adjustment (500) Increase in future income tax asset and future income tax benefit for 2008$755 * not given in the problem Part 1. part (b) Current Income Tax Expense1,200 Income Tax Payable1,200 ($4,000 X 30%) Future Income Tax Asset/Liability755 Future Income Tax Benefit755* *Alternately: Future Income Tax Asset630 Future Income Tax Liability125 Future Income Tax Benefit755 PROBLEM 18-9 (Continued) Part 2. (a) Mixed tax rates Future years 2009201020112012Total Future taxable amounts ($400) ($400) ($400) ($400) ($1,600) Tax rate enacted for the year 30%30%30%35% Future tax (liability) ($120) ($120) ($120) ($140) ($500) Future years 2009201020112012Total Future deductible amounts $3,000 $3,000 Tax rate enacted for the year 30%30%30%35% Future tax asset – – $900 – $900 PROBLEM 18-9 (Continued) Part 2. (a) Balance Deductible Sheet (Taxable) Future Tax AccountCarryingTaxTemporaryTaxAsset Dec. 31, 2008Amount*Basis*DifferencesRate(Liability) Property Plant Equipment($1,600)Mixed($500) Litigation Liability3,000Mixed900 Future income tax asset, December 31, 2008400 Future income tax asset before adjustment 600 Decrease in future income tax asset and future income tax expense for 2008$200 * not given in the problem Part 2. part (b) Current Income Tax Expense1,200 Income Tax Payable1,200 ($4,000 X 30%) Future Income Tax Expense200* Future Income Tax Asset200* *Alternately: Future Income Tax Expense200 Future Income Tax Asset300 Future Income Tax Liability500 PROBLEM 18-9 (Continued) (c) Part 1 – All balance sheet related accounts are non-current Pirates Corp. Balance Sheet December 31, 2008 Non-current assets Future income tax asset$255 Part 2 – All balance sheet related accounts are non-current Eagles Corp. Balance Sheet December 31, 2008 Non-current assets Future income tax asset$400 PROBLEM 18-12 (a)2007 Income Tax Refund Receivable—20047,500 ($25,000 X 30%) Income Tax Refund Receivable—200518,000 ?($60,000 X 30%) Income Tax Refund Receivable—200632,000 ($80,000 X 40%) Current Income Tax Benefit (Due to Loss Carryback)57,500 Note:An acceptable alternative is to record only one Income Tax Refund Receivable account for the amount of $57,500. Future Income Tax Asset18,000 Future Income Tax Benefit (Due to Loss Carryforward)18,000 ($210,000 – $25,000 – $60,000 – $80,000 = $45,000) ($45,000 X 40% = $18,000) 2008 Current Income Tax Expense10,000 Income Tax Payable? 10,000 [($70,000 – $45,000) X 40%] Future Income Tax Expense18,000 Future Income Tax Asset18,000 ($18,000 – $0) 2009 Current Income Tax Expense31,500 Income Tax Payable ($90,000 X 35%)31,500 PROBLEM 18-12 (Continued) (b)One or more income tax refund receivable accounts totalling $57,500 will be reported under current assets on the balance sheet at December 31, 2007. This type of receivable is usually listed immediately above inventory in the current asset section. This receivable is normally collec ¬tible within two months of filing the amendment to the tax returns reflecting the carryback. A future income tax asset of $18,000 should also be classified as a current asset because the benefits of the loss carryforward are expected to be realized in the year that immediately follows the loss year, which means the benefits are expected to be realized in 2008. A current future income tax asset is usually listed at or near the end of the list of current assets on the balance sheet. Also, retained earnings is increased by $75,500 ($57,500 + $18,000) as a result of the entries to record the benefits of the loss carryback and the loss carryforward. (c)2007 Income Statement Operating loss before income taxes($210,000) Income tax benefit Current benefit due to loss carryback$57,500 Future benefit due to loss carryforward? 18,000 75,500 Net loss($134,500) (d)2008 Income Statement Income before income taxes$70,000 Income tax expense Current$10,000a Future? 18,000? 28,000 Net income$42,000 a [($70,000 – $45,000) X 40%] PROBLEM 18-12 (Continued) (e)2007 Income Tax Refund Receivable—20047,500 ($25,000 X 30%) Income Tax Refund Receivable—200518,000 ($60,000 X 30%) Income Tax Refund Receivable—200632,000 ?($80,000 X 40%) Current Income Tax Benefit (Due to Loss Carryback)57,500 Note:An acceptable alternative is to record only one Income Tax Refund Receivable account for the amount of $57,500. Although the tax benefit is not recognized in the accounts, Mearat Inc. has a tax loss carryforward of $45,000 which should be disclosed. 2008 Current Income Tax Expense10,000 Income Tax Payable? 10,000 [($70,000 – $45,000) X 40%] 2009 Current Income Tax Expense31,500 Income Tax Payable ($90,000 X 35%)31,500 (f)2007: entry for current taxes – no change 2007: if a valuation allowance is used, the full benefit and future tax asset related to the tax loss carryforward is recognized and then offset by the allowance, as follows. Future Income Tax Asset18,000 Future Income Tax Benefit (Due to Loss Carryforward)18,000 ($45,000 X 40% = $18,000) Problem 18-12 (f) (Continued) Future Income Tax Expense18,000 Allowance to Reduce Future Income Tax Asset to Realizable Value)18,000 ($18,000 – $0) 2008: entry for current taxes – no change 2008: because the tax loss carryforward has now been used, both the amount in the future tax account and in its allowance account must be removed, as follows. Future Income Tax Expense (Due to Use of Loss Carryforward)18,000 Future Income Tax Asset18,000 Allowance to Reduce Future Income Tax Asset to Realizable Value18,000 Future Income Tax Benefit (from Adjustment of Allowance)18,000 Alternatively, one entry could have been made: Allowance to Reduce Future Income Tax Asset to Realizable Value18,000 Future Income Tax Asset18,000 2009: No change to part (e) entry. (g)2007 Income Statement Operating loss before income taxes($200,000) Income tax benefit Current benefit due to loss carryback? 57,500 Net loss($142,500) 2008 Income Statement Income before income taxes$70,000 Income tax expense – Current a 14,000 Net income$56,000 a [($70,000 – $35,000) X 40%] PROBLEM 18-12 (Continued) h)Using the valuation allowance instead of applying the reduction in value directly does not have any impact on cash flows. The use of the contra allowance simply permits the recording of the full benefits associated with all future deductible amounts in the asset account. This facilitates tracking for management purposes. It has no use for financial reporting purposes except, perhaps, for the transparency of the information. Readers can see the total possible benefits and the extent to which management has judged they will not be realized. Use of the allowance has no impact on cash flows. How to cite Chapter 18 Solutions, Essay examples

Lid free essay sample

She had me start by reading the twelve-page list of prospective card receivers. The Reverends Davis, I shouted into her ear with a low-pitched voice. I noticed black hairs sprouting from her chin. Whiskers. Gravity caused the skin on her chin and neck to hang a roosters wattles. Speak at a lower decibel level, she reminded me, while fiddling with her hearing aid. She sat tall, her fingers contorted and thick as sausages folded neatly in her lap, waiting to correct my next mispronunciation. I read off strange names, A.B.C. Whipple and Mrs. Crosby Beady, to which she would respond, Dead, or She didnt send me one last year, so cross her off the list. After I updated The List she gave me a tour of her house, proudly pointing out the Books by Friends collection in her library; she told me I would be doing more with that next week. We will write a custom essay sample on Lid or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page She led me up the stairs, eager to show me Bernies room. Bernie turned out to be a cab driver living in her attic. She showed me her piano by the window, sat down, and began humming loudly, producing the occasional trill. A man had attempted to rob her the previous night and the neighbors thought he was living in her shed; she wanted me to check. I told her it was time for me to go home. She led me to her front door, disappointed, and spread her arms wide to say goodbye. I didnt want to hug her. I thought old ladies were supposed to be cute. Not Lid. Sunday afternoon arrived too quickly. I considered not ringing her doorbell. Shed probably forget I was supposed to come, but I felt guilty so I pressed. She invited me in and offered me stale vanilla wafers and Tang. Her dog Mavis kept tailing me and licking my legs. I typed up the new list on her 1986 Macintosh Plus and put snowman address labels on the cards, if you could call a picture of a clear blue Jersey sky and a barn roof a C hristmas card. The caption read, Happy Holidays! My house is undergoing construction! When I finished, Lid had a new task for me: categorize each book in her library; shelve appropriately. I didnt understand the Dewey Decimal System. Im afraid of being useless, or trading in my independence for a First Alert necklace and a room at a home. At the Franklin Institute, my teacher made everyone see what wed look like at age 75 using an age progressor machine. I pretended I had to go to the bathroom. When my Brownie Troop sang Christmas carols at a nursing home, I hid in the back row. At age ninety-four, Lid is so full of life. I dont want to live my life fearing my birthday or wrinkles. I didnt realize how much I meant to her. After I complete a simple task of finding the map of South Carolina in her map drawer, she squeals, and her whole face lights up. I would never have been able to do that without you, she gushes. What she doesnt know is that I look forward to next week when I sta rt addressing this years Christmas cards.