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If Year 1 income tax expense equals $1,000, Year 2 equals $1,920, and Year 3 equals $1,893, the percentage to be assigned for Year 2 in a trend analysis, assuming that Year 1 is the base year, is ________ percent.

A :101B :it cannot be calculatedC :192
D :189

User Mattumotu
by
8.5k points

1 Answer

1 vote

Answer:

192

Step-by-step explanation:

Given: Income tax expense for 3 years.

Finding percentage of trend analysis for the year 2.

Base year is the year 1.

Now, as we know the base year is 1st which has income tax expense $1000.

Finding percentage in trend analysis for the year 2, which has income tax expense $1920.

Percentage of year 2 in a trend analysis =
\frac{\textrm{tax expense of year 2}}{\textrm{ tax expense of base year}} * 100

⇒ Percentage of year 2 in a trend analysis=
(1920)/(1000) * 100= 192\%

The percentage to be assigned for year 2 in trend analysis is 192.

User Dushyant Bangal
by
8.3k points
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