Bird enterprises has no debt. its current total value is $47.2 million. assume debt proceeds are used to repurchase equity.
a. ignoring taxes, what will the company’s value be if it sells $18.5 million in debt? (do not round intermediate calculations and enter your answer in dollars, not millions of dollars, round your answer to the nearest whole number, e. g., 1,234,567.)
b. suppose now that the company’s tax rate is 21 percent. what will its overall value be if it sells $18.5 million in debt?

Martinez company has the following two temporary differences between its income tax expense and income taxes payable. 2017 2018 2019 pretax financial income $873,000 $866,000 $947,000 (2017' 2018, 2019) excess depreciation expense on tax return (29,400 ) (39,000 ) (9,600 ) (2017' 2018, 2019) excess warranty expense in financial income 20,000 9,900 8,300 (2017' 2018, 2019) taxable income $863,600 $836,900 $945,700(2017' 2018, 2019) the income tax rate for all years is 40%. instructions: a. prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019. b. assuming there were no temporary differences prior to 2016, indicate how deferred taxes will be reported on the 2016 balance sheet. button's warranty is for 12 months. c. prepare the income tax expense section of the income statement for 2017, beginning with the line, "pretax financial income."