On December 31, 2017, Barton Incorporated Had Total Liabilities of $60,000

question 56

Essay

On December 31, 2017, Barton Incorporated had total liabilities of $60,000 and total shareholders' equity of $90,000, resulting in a debt/equity ratio of 0.67 before income tax expense is recognized. On December 31, 2017, Barton paid its 2017 income taxes of $6,000 while its income tax expense on its 2017 income statement was $8,000. This difference exists because Barton uses straight-line depreciation on its books and double-declining-balance depreciation on its tax returns. What is Barton's debt/equity ratio after the tax expense and deferred tax liability are recognized?

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Definitions:

Insufficient Rest

A state where the amount and quality of sleep or rest are not enough to ensure full recovery or optimal functioning of the body and mind.

Academic Demands

The requirements and expectations placed on students relating to their educational coursework and activities.

Excessive Daytime

This term is incomplete without additional context but generally could refer to excessive daytime sleepiness, a condition characterized by persistent sleepiness during daytime hours, regardless of adequate nighttime sleep.

Overwhelming Responsibilities

Tasks or duties that are excessively challenging or demanding, causing stress or difficulty in managing.