Question

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

Answer 1

Answer:

192

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 = $\frac{\textrm{tax expense of year 2}}{\textrm{ tax expense of base year}} \times 100$

⇒ Percentage of year 2 in a trend analysis= $\frac{1920}{1000} \times 100= 192\%$

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