Abbot's current income tax expense or benefit would be:
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Abbot Corporation reported pretax book income of $500,000. During the current year, the reserve for
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- Arndt, Inc. reported the following for 2021 and 2022 ($ in millions): 2021 2022 Revenues $ 888 $ 980 Expenses Pretax accounting income (income statement) Taxable income (tax return) 760 800 $ 128 $ 116 $ 180 $ 200 Tax rate: 25% a. Expenses each year include $30 million from a two-year casualty insurance policy purchased in 2021 for $60 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 $33 million and $35 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were $25 million ($10 million collected in 2020 but not recognized as revenue until 2021) and $33 million, respectively. Hint View this as two temporary differences-one reversing in 2021; one originating in 2021. d. 2021 expenses included a $14 million unrealized loss from reducing…Please help meThe Dakota Corporation had a 2021 taxable income of $20,000,000 from operations after all operating costs but before (1) interest charges of $3,800,000, (2) dividends received of $320,000, (3) dividends paid of $2,200,000, and (4) income taxes (the firm’s tax rate is 21 percent).a. Calculate Dakota’s income tax liability. (Round your answer to the nearest dollar amount.) With a marginal and average tax rate of 21% The income tax liability is NOT 3,469,200
- During 2021, Palm Corporation reported pretax book income of $675,000. Tax depreciation exceeded book depreciation by $45,000. In addition, the company received $10,000 of life insurance proceeds from the death of an officer. The company expensed $22,000 of stock compensation for financial purposes; however, there were no exercises during the year. Compute Palm Corporation's current income tax expense or benefit, and record the corresponding journal entry to record the current income tax provision.Liston, Incorporated had taxable income of $1 million for the current year. Compute Liston’s regular tax liability.Maxwell's annual financial statements show operating profit before interest and tax of $415,386 thousand, net income of $254,418 thousand, provision for income taxes of $73,016 thousand and net nonoperating expense before tax of $87,593 thousand.Assume Maxwell's statutory tax rate for the year is 37%. Maxwell's tax shield is:
- Lejeune, Inc., an S corporation in Boone, North Carolina, reports operating revenue of $400,000, the taxable interest of $380,000, operating expenses of $250,000, and deductions attributable to the interest income of $140,000. Lejeune's accumulated E&P amounts to $2 million. Calculate any penalty tax payable by Lejeune or its shareholders.St. George, Incorporated reported $711,800 net income before tax on this year’sfinancial statement prepared in accordance with GAAP. The corporation’s recordsreveal the following information:Four years ago, St. George realized a $283,400 gain on the sale of investmentproperty and elected the installment sale method to report the sale for taxpurposes. Its gross profit percentage is 50.12, and it collected $62,000 principaland $14,680 interest on the installment note this year.Five years ago, St. George purchased investment property for $465,000 cash froman LLC. Because St. George and the LLC were related parties, the LLC’s $12,700realized loss on the sale was disallowed for tax purposes. This year, St. George soldthe property to an unrelated purchaser for $500,000.A flood destroyed several antique carpets that decorated the floors of corporateheadquarters. Unfortunately, St. George’s property insurance does not coverdamage caused by rising water, so the loss was uninsured. The carpets’…In the current year, C Inc. had the following expenses: $4,000 legal fee to register a mortgage on its office building, $7,000 for landscaping the land around the office building and $800 interest paid to CRA for late tax instalments. The legal fee and landscaping expenses were accrued in the current year and paid in the following year. Determine the amount that C's net income for tax purposes will decrease in the current year due to these expenses.
- In the year 2019, a corporation made $18.5 Million in revenue, $2.4 Million of operating expenses, and depreciation expenses of $7.5 Million. The state income tax rate is 9% and the federal income tax rate is 21%. How much (a) state income tax, and (b) federal income tax will this corporation pay in this tax year? Assume that the state income tax is a tax-deductable expence when filing federal income tax. The approximate state income tax is $ Million (Round to three decimal places.) The approximate federal tax is $ Million. (Round to three decimal places.) The combined effective income tax rate is%. (Round to the nearest decimal.) The ATCF for the year 2019 is $ Million. (Round to three decimal places.) 31-2The following information pertains to Towers Corporation: • From 20X1 through 20X3, Towers had pre-tax income totalling $190,000. • In 20X4, Towers had a pre-tax loss of $630,000. • Earnings of each year is equal to taxable income. • The income tax rate was 40% from 20X1 through 20X4. • In 20X4, a rate of 38% was enacted for 20X5, and a rate of 36% was enacted for 20X6 and the following years. • In 20X4, management predicted that the benefits of only $224,000 of the tax loss carryforward were probable of realization in the carryforward period. Management also estimated that pre-tax earnings for 20X5 would be no more than $68,000. • Actual pre-tax earnings in 20X5 were $88,000. Management estimated that only $136,000 of the tax loss carryforward was probable of realization. • Pre-tax 20X6 earnings were $140,000. Management decided that it was highly probable that the full benefit of the remaining tax loss carryforward would be realized. Required: Towers uses a valuation account for its…