8. An entity, Dominic Limited has profit after tax of $15 million for the year ended December 31, 2020. The following appropriations of profit have not been included in this amount: 1. Arrears of cumulative preference dividend for 2 years ended December 31, 2020 - $4M 2. Ordinary dividends - $5M 3. Preference share premium payable on redemption-appropriation of profit - $1M 4. Exceptional profit (net of tax) - $4M These share transactions occurred during the year ended December 31, 2020. The entity had 3 million ordinary shares of $1 outstanding at January 1, 2020: Date Ordinary shares issued/purchased |Issued at $5 per share-$1 paid to date: Jan. 1 250,000 entitled to participate in dividends to the extent paid up. | Apr. 1 Full market price $3 per share issue. 600,000 Purchase of own shares at $3.50 per Jul. 1 (400,000) share. Required: Calculate basic earnings per share.

8. An entity, Dominic Limited has profit after tax of $15 million for the year ended December 31, 2020. The following appropriations of profit have not been included in this amount: 1. Arrears of cumulative preference dividend for 2 years ended December 31, 2020 - $4M 2. Ordinary dividends - $5M 3. Preference share premium payable on redemption-appropriation of profit - $1M 4. Exceptional profit (net of tax) - $4M These share transactions occurred during the year ended December 31, 2020. The entity had 3 million ordinary shares of $1 outstanding at January 1, 2020: Date Ordinary shares issued/purchased |Issued at $5 per share-$1 paid to date: Jan. 1 250,000 entitled to participate in dividends to the extent paid up. | Apr. 1 Full market price $3 per share issue. 600,000 Purchase of own shares at $3.50 per Jul. 1 (400,000) share. Required: Calculate basic earnings per share.

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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Coronado Corporation, a private company, began operations on January 1, 2020. During its first three years of operations. Coronado reported net income and declared dividends as follows: 2020 2021 2022 Net income $50,000 130,000 151,000 Dividends declared Effective tax rate $0 50,000 The following information is for 2023: 50,000 Income before income tax Correction of prior period error: understatement of 2021 depreciation expense (before tax) Cumulative increase in prior years' income from change in inventory method (before tax) Dividends declared (of this amount, $25,000 will be paid on January 15, 2024) $320,000 Coronado Corporation Statement of Retained Earnings 35,000 45,000 100.000 40% Prepare a 2023 statement of retained earnings for Coronado. The company follows ASPE. (List items that increase retained earnings first after adjusted balance. Enter negative amounts using either o negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
The following information applies to the operations of MK Inc. for 2022 and 2023. Assume a tax rate of 20% for both years.2022 information:Sales on account in the amount of $675,000Warranty expense and associated liability in the amount of $145,000No other expenses incurred.2023 information:Sales on account in the amount of $210,000Warranty repairs made in the amount of $69,000No expenses incurred.What is MK's income tax expense for 2022? Group of answer choices $121,200 $135,000 $106,000 $164,000
Please answer it in good accounting form
Amazon Ltd reported the following tax attributes for the taxation year ending December 31, 2020. The balance of both refundable dividend tax on hand account at December 31,2019 was nil. The company received portfolio dividend of $18,750. The company paid $112,500 in taxable dividend, all non-eligible, to its shareholders. The refundable portion of part I tax was correctly calculated to be $1,533. Calculated the dividend refund for the taxation year 2020.
1. ACE Company had pretax GAAP income of $50,000 for the tax year ended December 31. Label each of the following items as either Deferred Tax Liabilities (DTL) or Deferred Tax Assets (DTA) 1. Excess accelerated depreciation for tax purposes, $5,000 2. Unrealized holding gain on securities accounted for under FV-NI, $2,000 3. Unrealized holding loss on securities accounted for under FV-NI, $2,000 4. Rental receipts received in advance, $30,000 5. Litigation contingency accrual, $10,000 6. Six-month prepaid rent deposit, $12,000 40.000 5 2.80
At 30 June 2019, ABC Ltd had the following deferred tax balances: Deferred tax liability $18,000 Deferred tax asset 15,000Beta Ltd recorded a profit before tax of $80,000 for the year to 30 June 2020, which included the following items:Depreciation expense – plant Doubtful debts expense Long-service leave expense$7,000 3,000 4,000For taxation purposes the following amounts are allowable deductions for the year to 30 June 2020:Tax depreciation – plant $8,000 Bad debts written off 2,000Depreciation rates for taxation purposes are higher than for accounting purposes. A corporate tax rate of 30% applies.Required:a) Determine the taxable income and income tax payable for the year to 30 June 2020.b) Determine by what amount the balances of the deferred liability and deferred tax asset will increase or decrease for the year to 30 June 2020 because of depreciation, doubtful debts and long-service leave.c) Prepare the necessary journal entries to account for income tax assuming recognition…
Compute MV Corp.'s 2020 taxable income given the following information relating to its year 1 activities. Also, compute MV's Schedule M-1 assuming that MV's federal income tax expense for book purposes is $100,000. Use Exhibit 16-6. • Gross profit from inventory sales of $500,000 (no book-tax differences). • Dividends MV received from 25 percent-owned corporation of $100,000 (assume this is also MV's pro rata share of the distributing corporation's earnings). • Expenses other than DRD, charitable contribution (CC), and net operating loss (NOL) are $350,000 (no book-tax differences). • NOL carryover from 2019 of $10,000. • Cash charitable contribution of $120,000. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Compute MV's Schedule M-1 assuming that MV's federal income tax expense for book purposes is $100,000. (Enter all values as positive numbers.)
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Company XYZ is a CCPC. This year has an opening non-eligible RDTOH of $20,000; cdn ABI income was $200,000; non- eligible, cdn dividend income (non-connected) was $10,000; cdn taxable capital gain income of $20,000; paid out dividend was $30,000. The small business deduction was $19,000. Part I tax was $40,000. There was an applied allowable net capita loss carry forward of $10,000. Taxable income was $270,000, assume all transactions and balances qualify for non-eligible status. Please calculate the company`s ending noneligible RDTOH BEFORE this year `s dividednd refund this year?
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