general account questions. please answer me soon A consumer electronics company was formed to develop cell phonesthat run on or are recharged by fuel cells. The company purchased awarehouse and converted it into a manufacturing plant for $6,000,000.It completed the installation of assembly equipment worth $1,500,000on December 31. The plant began operation on January 1. Thecompany had a gross income of $8,500,000 for the calendar year.Manufacturing costs and all operating expenses, excluding the capitalexpenditures, were $2,280,000. The depreciation expenses for capitalexpenditures amounted to $456,000.a) Compute the taxable income of this company.b) How much will the company pay in federal income taxes for theyear?

Step 1: Understanding the ProblemWe are tasked with calculating:Taxable income for the company.The…

Answered: A consumer electronics company was…

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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A consumer electronics company was formed to develop cell phones that run on or are recharged by fuel cells. The company purchased a warehouse and converted it into a manufacturing plant for $8,000,000. It completed installation of assembly equipment worth $1,700,000 on December 31st. The plant began operation on January 1st. The company had a gross income of $8,600,000 for the calendar year. Manufacturing costs and all operating expenses, excluding the capital expenditures, were $2,170,000. The depreciation expenses for capital expenditures amounted to $465,000. The corporate tax rate is 21%. (a) Compute the taxable income of this company. The taxable income of this company is $ 5965000. (Round to the nearest dollar.) (b) How much will the company pay in federal income taxes for the year? The federal income taxes for the year will be $ (Round to the nearest dollar.)
Munabhai
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A machine costing $257,500 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce 475, 000 units of product during its life. It actually produces the following units: 220,000 in 1st year, 124,000 in 2nd year, 121,800 in 3rd year, 15,200 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate—this difference was not predicted. (The machine must not be depreciated below its estimated salvage value.) Required: Prepare a table with the following column headings and compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method.
A machine costing $257,500 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce 475,000 units of product during its life. It actually produces the following units: 220,000 in 1st year, 124,600 in 2nd year, 121,800 in 3rd year, 15,200 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate—this difference was not predicted. (The machine must not be depreciated below its estimated salvage value.) Required: Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method. (Round your per unit depreciation to 2 decimal places.)

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