34. Thinker Corporation's income statement for the year ended December 31, 2022, shows pretax income of P1,000,000. The following are treated differently on the tax return and in the accounting records: Tax Return Book records Rent income P P 120,000 220,000 70,000 280,000 Depreciation Premiums on officer's life insurance* 90,000 *the Corporation is the beneficiary of the insurance policy of the officer. Assume that Thinker Corporations tax rate for 2022 is 30%, what is the amount of income tax payable for 2022?
Q: The partners of the M & N Partnership started liquidating their business on July 1, 20x5, at which…
A: The question is related to the Partnership Accounting. In the given question all cash realised from…
Q: MD Construction entered into a contract beginning January 1, 2010 to build a parking complex. It has…
A: Percentage-of-completion method can be referred to as the method of accounting costs in case of long…
Q: Entity A bills its branch for merchandise shipments 25% of sale. As of cut-off date, December 31,…
A: Calculation of Allowance for overvaluation is shown below:
Q: What is the impairment loss for the current year?
A: Impairment: Impairment is the sudden loss in the value of an asset other than depreciation for…
Q: Queer Company provided the following charges to the repair and maintenance account: Service contract…
A: NOTES : 1. INITIAL DESIGN FEE IS NOT YET RECORDED SINCE THERE IS NO EXTENSION OF THE OFFICE BUILDING…
Q: Gumiho Corporation acquired Forest Company through an exchange of common shares. All of Foresť's…
A: This question is related to merger & acquisition in which it is asking the number of shares…
Q: A local partnership was considering the possibility of liquidation since one of the partners is…
A: Solution:- Introduction:- The partnership business is mutual agreement between two or more people…
Q: Jay & Kay partnership's balance sheet at December 31, 2003, reported the following: Total assets…
A: The increase in net asset is to be considered in order to calculate purchase consideration. Total…
Q: On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership on installment…
A: ABC Co. Cash + Non Cash Assets = Liabilities + A Capital and Loan & Drawing + B Capital and…
Q: The statement of financial position of AB Partnership as of December 31, 20x1 is as follows: 789,038…
A: Solution: Total partnership capital before admission of C = 689,173 + 1,810,827 = 2,500,000 After…
Q: The Dino Company, a partnership, was formed on January 1, 2020, with four partners, DD, EE, FF and…
A: A partnership is a kind of business structure in which two or more people agree to carry out…
Q: Lovely Corp 's current liabilities at Dec. 31, 2019 totaled P 1,500,000 before any necessary…
A: Current Liability: Current liabilities are financial commitments owed by a corporation that are due…
Q: In January 2015, Genesis Company purchased equipment at a cost of P 5,000,000. The equipment had an…
A: Business has to use several tangible fixed assets to carry out their operations. These assets are…
Q: Percy Company is engaged in a small export business . The company maintains limited records. Most of…
A: Gross Sales:-It is the grand total sales obtained by adding and subtracting all related discounts…
Q: You company provided the following information on Dec. 31, 2019: Accounts Payable Bank note payable…
A: Current Liabilities are those liabilities which are due and payable within one year. Out of the…
Q: ABC Co. is undergoing liquidation. Information before the start of the liquidation process is as…
A: Correct option is D. 6000
Q: During 2011, Vien Co. introduced a new line of machines that carry a three-year warranty against…
A: Warranty liability = Total expense recognized - Actual warranty expenditure The question requires…
Q: During 2019, Genesis Co. introduced a new line of machines that carry a three-year warranty against…
A: The question requires liability to be reported on December 31 , 2021 Warranty liability = Warranty…
Q: The separate incomes (which do not include investment income) of Celine Corporation and Margaux…
A: The sales of the parent and those of the subsidiary excluding the inter-company sales would give the…
Q: Tali Co. Acquired 80% of Wind Corp.'s voting rights. The statements of financial position of both…
A: Tali co. acquired Wind corp. = 80% Balance sheet of both companies are given. Computation of…
Q: Income statement information for the year 2020 for Perena Corporation and its 60% owned subsidiary,…
A: Consolidated Cost of Sales:- It is calculated by adding both costs of sales of a parent as well as a…
Q: A branch's trial balance at the en of a period is as follows: DR CR Home Office 120,000 Shipment…
A: Sales refer to the level or amount of goods sold or service rendered by the firm. When the buyer…
Q: Description Amount P900,000 20,000 Winnings from gambling Interest on bank deposits Increase in fair…
A: Answer: Any income that is earned that are not specified as exempt income is covered as taxable…
Q: What amount should Dysabel report as Cost of sales in its 2020 consolidated income statement?
A: Cost of sales can be defined as the actual cost incurred over the goods to make the available for…
Q: Department G had 3,600 units, one-third completed at the beginning of the period, 12,000 units were…
A: Work in process (WIP) is a type of inventory which is not completely produced but not completely…
Q: GREY Corp's statement of financial position prior to the acquisition is shown as follows: ASSETS…
A: Goodwill is the reputation of an entity which it earns during the course of its business. When…
Q: Josey Company entered into a contract to acquire a new machine for its factory. The machine, which…
A: The cost of machine comprises its purchase price, duties and taxes which are non recoverable , and…
Q: Nakeeta company owned 50,000 ordinary shares which were purchased for P120 per share. During the…
A:
Step by step
Solved in 2 steps
- Thinker Corporation’s income statement for the year ended December 31, 2022, shows pretax income of P1,000,000. The following are treated differently on the tax return and in the accounting records: Tax Return Book records Rent income P 120,000 P 70,000 Depreciation 220,000 280,000 Premiums on officer’s life insurance* --- 90,000 *the Corporation is the beneficiary of the insurance policy of the officer. Assume that Thinker Corporations tax rate for 2022 is 30%, what is the amount of income tax payable for 2022?Required information [The following information applies to the questions displayed below.] Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): Revenues Expenses Pretax accounting income (income statement) Taxable income (tax return) Tax rate: 25% 2024 $936 792 $144 $ 108 2025 $ 1,028 848 $ 180 $ 214 a. Expenses each year include $54 million from a two-year casualty insurance policy purchased in 2024 for $108 million. The cost is tax deductible in 2024. b. Expenses include $2 million insurance premiums each year for life insurance on key executives. c. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2024 and 2025 were $55 million and $71 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $49 million ($32 million collected in 2023 but not recognized as revenue until 2024) and $55 million, respectively. Hint. View this as two temporary differences-one reversing in…S Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): 2024 $932 788 $ 144 $ 112 Revenues Expenses Pretax accounting income (income statement) Taxable income (tax return) Tax rate: 25% 2025 $ 1,024 844 $ 180 $ 214 a. Expenses each year include $50 million from a two-year casualty insurance policy purchased in 2024 for $100 million. The cost is tax deductible in 2024. b. Expenses include $2 million insurance premiums each year for life insurance on key executives. c. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2024 and 2025 were $51 million and $67 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $45 million ($28 million collected in 2023 but not recognized as revenue until 2024) and $51 million, respectively. Hint. View this as two temporary differences-one reversing in 2024; one originating in 2024. d. 2024 expenses included a $34 million unrealized loss…
- Please answer in good accounting form. Thankyou 7. Compute for the taxable incomeRequired information [The following information applies to the questions displayed below.] Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): Revenues Expenses Pretax accounting income (income statement) Taxable income (tax return) Tax rate: 25% 2024 $918 774 $144 $126 2025 $ 1,010 830 $ 180 $ 214 a. Expenses each year include $36 million from a two-year casualty insurance policy purchased in 2024 for $72 million. The cost is tax deductible in 2024. b. Expenses include $2 million insurance premiums each year for life insurance on key executives. c. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2024 and 2025 were $37 million and $53 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $31 million ($14 million collected in 2023 but not recognized as revenue until 2024) and $37 million, respectively. Hint. View this as two temporary differences-one reversing in…1. Faye Faye Corporation's statement of financial performance for the year ended December 31, 20X2, shows pretax income of P 1,000,000. The following items are treated differently on the tax return and in the accounting records. Tax Return Accounting Records Rent income P 70,000 P 120,000 Depreciation Expense 280,000 220,000 Premiums on officers' life insurance 90,000 Faye Faye's rate for 20X2 is 30%. How much is the current tax expense for 20X2?
- Required Information The following Information applies to the questions displayed below.) Arndt, Inc. reported the following for 2021 and 2022 ($ in millions): 2021 2022 $1,024 844 Revenues Еxpenses Pretax accounting income (income statement) Taxable income (tax return) Tax rate: 25% $ 932 788 $ 144 $ 112 S 180 24 214 a. Expenses each year include $50 million from a two-year casualty insurance policy purchased in 2021 for $100 million. The cost is tax deductible in 2021. b. Expenses include $2 million insurance premiums each year for life insurance on key executives. C. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2021 and 2022 were $51 million and $67 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were $45 million ($30 million collected in 2020 but not recognized as revenue until 2021) and $51 million, respectively. Hint View this as two temporary differences-one reversing in 2021; one…1. 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 of $ 111,550 and the following transactions: premiums on life insurance policy on its…Required Information [The following information applies to the questions displayed below] Arndt, Inc. reported the following for 2021 and 2022 ($ In millions): Revenues Expenses Pretax accounting income (income statement) Taxable income (tax return) Tax rate: 25% 2021 $968 792 $ 176 $ 148 2022 $1,012 816 $196 $ 224 a. Expenses each year Include $54 million from a two-year casualty Insurance policy purchased in 2021 for $108 million. The cost is tax deductible in 2021. b. Expenses include $2 million Insurance premiums each year for life Insurance on key executives. c. Arndt sells one-year subscriptions to a weekly Journal. Subscription sales collected and taxable in 2021 and 2022 were $49 million and $51 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were $41 million ($26 million collected in 2020 but not recognized as revenue until 2021) and $49 million, respectively. Hint View this as two temporary differences-one reversing in 2021; one…
- Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): Revenues Expenses Pretax accounting income (income statement) Taxable income (tax return) Tax rate: 25% 2024 $ 940 796 $ 144 $ 104 2025 $ 1,032 852 a. Expenses each year include $58 million from a two-year casualty insurance policy purchased in 2024 for $116 million. The cost is tax deductible in 2024. $ 180 $ 214 b. Expenses include $2 million insurance premiums each year for life insurance on key executives. c. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2024 and 2025 were $59 million and $75 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $53 million ($36 million collected in 2023 but not recognized as revenue until 2024) and $59 million, respectively. Hint. View this as two temporary differences-one reversing in 2024; one originating in 2024. d. 2024 expenses included a $42 million unrealized loss from…Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): 2025 $ 1,020 840 $180 $ 214 Revenues Expenses Pretax accounting income (income statement) Taxable income (tax return) Tax rate: 25% 2024 $928 784 $144 $ 116 a. Expenses each year include $46 million from a two-year casualty insurance policy purchased in 2024 for $92 million. The cost is tax deductible in 2024. b. Expenses include $2 million insurance premiums each year for life insurance on key executives. c. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2024 and 2025 were $47 million and $63 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $41 million ($24 million collected in 2023 but not recognized as revenue until 2024) and $47 million, respectively. Hint. View this as two temporary differences-one reversing in 2024; one originating in 2024. d. 2024 expenses included a $30 million unrealized loss from…Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): 2025 $ 1,024 844 $180 $ 214 Revenues Expenses Pretax accounting income (income statement) Taxable income (tax return) Tax rate: 25% 2024 $932 788 a. Expenses each year include $50 million from a two-year casualty insurance policy purchased in 2024 for $100 million. The cost is tax deductible in 2024. $144 $ 112 b. Expenses include $2 million insurance premiums each year for life insurance on key executives. c. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2024 and 2025 were $51 million and $67 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $45 million ($28 million collected in 2023 but not recognized as revenue until 2024) and $51 million, respectively. Hint. View this as two temporary differences-one reversing in 2024; one originating in 2024. d. 2024 expenses included a $34 million unrealized loss from…