Watson Corporation prepared the following reconciliation for its first year of operations:
Pretax Financial income for 2017 = $1,400,000
Tax exempt interest (permanent difference) = - $100,000
Originating temporary difference = - $300,000
Taxable income = $1,000,000
Temporary difference will reverse evenly over the next two years at an enacted tax rate of 21%. The enacted tax rate for 2017 is 35%.
a) What amount should be reported in its 2017 income statement as the current portion of its provision for income taxes?
b) What amount should be shown on the balance sheet for Watson's deferred taxes?

Aborrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. the first two years of the loan have a "teaser" rate of 4%, after that, the rate can reset with a 5% annual payment cap. on the reset date, the composite rate is 6%. what would the year 3 monthly payment be?

The cook corporation has two divisions--east and west. the divisions have the following revenues and expenses: east west sales $ 603,000 $ 506,000 variable costs 231,000 300,000 traceable fixed costs 151,500 192,000 allocated common corporate costs 128,600 156,000 net operating income (loss) $ 91,900 $ (142,000 ) the management of cook is considering the elimination of the west division. if the west division were eliminated, its traceable fixed costs could be avoided. total common corporate costs would be unaffected by this decision. given these data, the elimination of the west division would result in an overall company net operating income (loss)

Atrough in the business cycle occurs when