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Since the SUTA rates change at the end of each year, the available 2023 rates were used for FUTA and SUTA. Note: For this textbook edition the rate 0.6% was used for the net FUTA tax rate for employers. Example 5-6 Park Company has a $70,000 federal and state taxable payroll and has earned a reduced state tax rate timely, the FUTA tax calculation is as follows: Gross FUTA tax ($70,000 x 0.060) Less 90% credit for state taxes paid late ($70,000 x 0.04 x 90%) $2,520 Less additional credit for state tax if rate were 5.4% [$70,000 x (0.054 - 0.04)] 980 Total credit Net FUTA tax If Park Company had made its SUTA payments before the due date of Form 940, the credit for the paym would have provided a total credit of $3,780 and a FUTA tax savings of $280. Peroni Company paid wages of $170,900 this year. Of this amount, $114,000 was taxable for net FUTA and SUTA purposes. The state's contribution tax rate is 3.1% for Peroni Company. Due to cash flow problems, the company did not make any SUTA…

Tamarisk Enterprises Ltd., a private company following ASPE earned accounting income before taxes of $1,717,000 for the year ended December 31, 2023. During 2023, Tamarisk paid $250,000 for meals and entertainment expenses. In 2020, Tamarisk's tax accountant made a mistake when preparing the company's income tax return. In 2023, Tamarisk paid $18,000 in penalties related to this error. These penalties were not deductible for tax purposes. Tamarisk owned a warehouse building for which it had no current use, so the company chose to use the building as a rental property. At the beginning of 2023, Tamarisk rented the building to SPK Inc. for two years at $260,000 per year. SPK paid the entire two years rent in advance. Tamarisk used the straight-line depreciation method for accounting purposes and recorded depreciation expense of $404,000. For tax purposes, Tamarisk claimed the maximum capital cost allowance of $629,000. Tamarisk began to sell its products with a two-year warranty against…

Please help me figure out the fourth part.

In late 2017 the federal tax rate for subsequent years was decreased from 35% to 21%. How would this affect an existing deferred tax liability? How would the change be reflected in net income?

I need help with the two marked wrong. Thanks.

The maximum tax bases and percentages for 2022 for the two portions of the self-employment tax are which of the following?   Social Security Medicare a. $ 147,000; 12.4% Unlimited; 2.9%. b. $ 147,000; 12.4% Unlimited; 15.3%. c. $ 142,800; 12.4% Unlimited; 2.9%. d. $ 142,800; 15.3% Unlimited; 15.3%.

Almond Corporation, a calendar year C corporation, had taxable income of $400,000, $600,000 and $800,000 for 2016, 2017, and 2018, respectively. Almond’s taxable income is $900 million for 2019. Compute the minimum estimated tax payments that should have been made for 2019 for Almond Corporation, if Almond wants to avoid any penalty for underpayments of estimated taxes.(see the power points, the lecture, and google this too if needed)     In each of the following independent situations, determine the C corporation’s income tax liability. Assume that all corporations use a calendar year 2020. (see your PPs; your text; or go to IRS website)     Taxable   Violet Corporation Income $     36,000 Indigo Corporation 380,000 Orange Corporation 810,000 Blue Corporation RYPG 2,100,000

For many years preceding 2018, Minimis Corporation, a calendar year corporation, had incurred the alternative minimum tax (AMT) and as a result had a $2 million minimum tax carryover into 2018.  However, the Tax Cuts and Jobs Act of 2017 repealed the corporate AMT for tax years beginning after 2017.  Minimis expects its regular tax liability to be $100,000 per year for 2018, 2019, 2020, and 2021.  Your supervisor has asked you to determine how Minimis treats the minimum tax credit carryover in these four years now that the corporate AMT has been repealed.  Your supervisor has suggested that you start by looking at IRC Sec. 53.

J-Matt, Inc., had pretax accounting income of $291,000 and taxable income of $300,000 in 2021. The only difference between accounting and taxable income is estimated product warranty costs of $9,000 for sales in 2021. Warranty payments are expected to be in equal amounts over the next three years (2022–2024) and will be tax deductible at that time. Recent tax legislation will change the tax rate from the current 25% to 20% in 2023. Determine the amounts necessary to record J-Matt’s income taxes for 2021 and prepare the appropriate journal entry.

Shwonson Industries reported a deferred tax asset of $9.75 million for the year ended December 31, 2020, related to a temporary difference of $39 million. The tax rate was 25%. The temporary difference is expected to reverse in 2022, at which time the deferred tax asset will reduce taxable income. There are no other temporary differences in 2020–2022. Assume a new tax law is enacted in 2021 that causes the tax rate to change from 25% to 15% beginning in 2022. (The rate remains 25% for 2021 taxes.) Taxable income in 2021 is $49 million. Required:1. Prepare the appropriate journal entry to record Shwonson’s income tax expense in 2021.2. What effect, will enacting the change in the 2022 tax rate, have on Shwonson’s 2021 net income?

(One Temporary Difference, Future Taxable Amounts, One Rate, No Beginning Deferred Taxes) South Carolina Corporation has one temporary difference at the end of 2017 that will reverse and cause taxable amounts of $55,000 in 2018, $60,000 in 2019, and $65,000 in 2020. South Carolina’s pretax financial income for 2017 is $300,000, and the tax rate is 30% for all years. There are no deferred taxes at the beginning of 2017.Instructions(a) Compute taxable income and income taxes payable for 2017.(b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017.(c) Prepare the income tax expense section of the income statement for 2017, beginning with the line “Income before income taxes.”

Shwonson Industries reported a deferred tax asset of $5 million for the year ended December 31, 2020, related to a temporary difference of $20 million. The tax rate was 25%. The temporary difference is expected to reverse in 2022, at which time the deferred tax asset will reduce taxable income. There are no other temporary differences in 2020–2022. Assume a new tax law is enacted in 2021 that causes the tax rate to change from 25% to 15% beginning in 2022. (The rate remains 25% for 2021 taxes.) Taxable income in 2021 is $30 million.Required:Determine the effect of the tax rate change and prepare the appropriate journal entry to record Shwonson’s income tax expense in 2021. What effect, if any, will enacting the change in the 2022 tax rate have on Shwonson’s 2021 net income?

This year Bill received a $900 refund of state income taxes that he paid last year. Last year Bill claimed itemized deductions of $15,000 including $2,800 of state income taxes. How much of the refund, if any, must Bill include in gross income if the standard deduction last year was $12,400?    A. $0 B. $900  C. $1,000  D. $2,800 E. $6,300

Shwonson Industries reported a deferred tax asset of $5.50 million for the year ended December 31, 2020, related to a temporary difference of $22 million. The tax rate was 25%. The temporary difference is expected to reverse in 2022, at which time the deferred tax asset will reduce taxable income. There are no other temporary differences in 2020-2022. Assume a new tax law is enacted in 2021 that causes the tax rate to change from 25% to 15% beginning in 2022. (The rate remains 25% for 2021 taxes.) Taxable income in 2021 is $32 million. Required: 1. Prepare the appropriate journal entry to record Shwonson's income tax expense in 2021. 2. What effect, will enacting the change in the 2022 tax rate, have on Shwonson's 2021 net income? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate journal entry to record Shwonson's income tax expense in 2021. (If no entry is required for a transaction/event, select "No journal entry…