22. for 2021, Forway corporation, an accrual basis calendar year corporation, had net income per booksof $ 111,550 and the following transactions: premiums on life insurance policy on its key employees-$6000 excess capital losses $2000 excess tax depreciation $9000 life insurance proceeds on life of its keyemployees $55000 rent income received in 2021 $40000 ( $30000 is prepaid and related to 2021) taxexempt interest income $8000 federal income tax liability for 2021 $15450 prepaid rent received andproperly taxed in 2020 ( but not earned for financial accounting purpose until 2021) $15000 interestexpense on tax exempt interest income item $2000 The taxable income for Forrway corporation for thetax year of 2021 is ( as computed in its schedule M-1 reconciliation)$90000$100000$80000$7000023. for 2021, Forway corporation, an accrual basis calendar year corporation, had net income per booksof $ 111,550 and the following transactions: premiums on life insurance policy on its key employees-$6000 excess capital losses $2000 excess tax depreciation $9000 life insurance proceeds on life of its keyemployees $55000 Rent income received in 2021 $40000 ( $30000 is prepaid and related to 2021) taxexempt interest income $8000 federal income tax liability for 2021 $15450 prepaid rent received andproperly taxed in 2020 ( but not earned for financial accounting purpose until 2021) $15000, interestexpense on tax exempt interest income item $2000. The total amount "added" to net income per booksfor Forrway corporation in its schedule M-1 reconciliation for the tax year of 2021 isww$55450$80000$167000$87000

Calculation of Taxable income of Forrway for Tax year 2021

22. for 2021, Forrway corporation, an accrual basis calendar year corporation, had net income per books of $ 111,550 and the following transactions: premiums on life insurance policy on its key employees- $6000 excess capital losses $2000 excess tax depreciation $9000 life insurance proceeds on life of its key employees $55000 rent income received in 2021 $40000 ($30000 is prepaid and related to 2021) tax exempt interest income $8000 federal income tax liability for 2021 $15450 prepaid rent received and properly taxed in 2020 (but not earned for financial accounting purpose until 2021) $15000 interest expense on tax exempt interest income item $2000 The taxable income for Forrway corporation for the tax year of 2021 is (as computed in its schedule M-1 reconciliation) $90000 $100000 $80000 $70000 23. for 2021, Forrway corporation, an accrual basis calendar year corporation, had net income per books Ll સતત C II I'C

22. for 2021, Forrway corporation, an accrual basis calendar year corporation, had net income per books of $ 111,550 and the following transactions: premiums on life insurance policy on its key employees- $6000 excess capital losses $2000 excess tax depreciation $9000 life insurance proceeds on life of its key employees $55000 rent income received in 2021 $40000 ($30000 is prepaid and related to 2021) tax exempt interest income $8000 federal income tax liability for 2021 $15450 prepaid rent received and properly taxed in 2020 (but not earned for financial accounting purpose until 2021) $15000 interest expense on tax exempt interest income item $2000 The taxable income for Forrway corporation for the tax year of 2021 is (as computed in its schedule M-1 reconciliation) $90000 $100000 $80000 $70000 23. for 2021, Forrway corporation, an accrual basis calendar year corporation, had net income per books Ll સતત C II I'C

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Robin Corp. had the following in 2020: Taxable Income: $330,000 Federal income tax: $69,300 Interest on state gov’t (muni) bond: $5,000 Interest on corporate bond: $10,000 Meals expense (total): $3,000 Key person life insurance premiums: $3,500 Key person life insurance proceeds: $130,000 Ordinary & necessary business expenses $250,000 Dividends (from a less-than-20%-owned US corp.): $35,000 What is Robin Corp.’s current E&P? Assume that there is no cash surrender value on the life insurance policy?
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