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U&I Transportation System has integrated transport networks in three different regions in a developing country. These three markets have vast regional differences. Because of the increasing competition in the market, U&I Transportation must create a control system that offers continuity of service across the continuum for a set price in order to remain competitive. Its board of directors set the system’s goal as being a leader in developing and maintaining integrated transport networks that support productivity and community wellbeing.
Required:
To meet this goal in the three regions, should U&I Transportation System’s management structure be decentralized or centralized? Provide at least five reasons to support your answer.
Prepare the journal entry to record income tax expense, deferred taxes, and income taxes payable for 2015. (1-6 above) Draft the income tax expense section of the income statement, beginning with Income before income taxes.
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