General accounting question ABC Corporation reports the following income for the current tax year:•Operating income from business activities = $220,000Interest income from corporate bonds = $15,000⚫ Dividend income from other domestic corporations = $40,000What is ABC Corporation's total tax liability for the year?Use the following corporate tax schedule:Taxable IncomeTax on Base of Bracket Percentage on Excess$0-$50,000SO$50,000-$75,000$7,500$75,000-$100,000$13,750$100,000-$335,000$22,250$335,000-$10,000,000$113,900$10,000,000-$15,000,000 $3,400,00015%25%34%39%34%35%Assume a 70% dividend exclusion applies to the dividend income.

Step 1: Define Corporate Tax LiabilityThe Corporate Tax Liability represents the amount of federal…

Answered: ABC Corporation reports the following…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter18: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 16P

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Assume that a corporation has $100,000 of taxable income from operations plus $5,000 of interest income and $10,000 of dividend income. What is the company’s federal tax liability?
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.
Pecorino Company had pretax financial income of P2,500,000 in the current year. The entity made corporate estimated tax payment in the amount of 180,000 during the current year. To compute the provision for income tax, the following information was provided: Interest income received 360,000 Tax depreciation in excess of financial statement amount 160,000 Rent received in advance 280,000 Corporate tax rate 30% What amount of income tax payable should be reported?a. 498,000b. 606,000c. 330,000d. 570,000
Randal Corporation reports the following results for the current year: Gross profits on sales 81,000 Short-term capital gain 75,000 Long-term capital gain 10,000 Dividends from 25%-owned domestic corporation 25,000 NOL carryover from the preceding tax year 2,000 Operating expenses 90,000 Requirement: What are Randal's taxable income and income tax liability? Step 1. Begin by computing Randal's taxable income before special deductions, then calculate the taxable income. Step 2. Compute Randal's income tax liability
Crypto Corporation recognizes net income of $150,000 along with an other comprehensive gain of $32,400 (pre-tax) for the current year ended December 31. The prior year December 31 balance in accumulated other comprehensive income is $68,400 (credit balance), and the balance in retained earnings is $48,000 (credit balance). Assume a tax rate of 25%. a. Prepare a statement of comprehensive income for the current year, and what is the AOCI account balance.
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Pecorino Company had pretax financial income of P2,500,000 in the current year. The entity made corporate estimated tax payment in the amount of 180,000 during the current year. To compute the provision for income tax, the following information was provided: Interest income received 360,000 Tax depreciation in excess of financial statement amount 160,000 Rent received in advance 280,000 Corporate tax rate 30% What amount of permanent difference between book income and taxable income existed at year-end?
Lintner Beverage Corp. reported the following information from their financial statements: Operating income (EBIT) = $20,000,000 Interest payments on long-term debt = $1,750,000 Dividend income = $1,000,000 Calculate Lintner's total tax liability using the corporate tax schedule below: Taxable Income $0-$50,000 $50,000-$75,000 $75,000-$100,000 $100,000-$335,000 $335,000-$10,000,000 $10,000,000-$15,000,000 $15,000,000-$18,333,333 Over $18,333,333 a. $7,515,881 b. $6,817,125 c. $7,157,982 d. $6,492,500 e. $6,167,875 Tax on Base of Bracket $0 7,500 13,750 22,250 113,900 3,400,000 5,150,000 6,416,667 Percentage on Excess above Base 15% 25 34 39 344 35 38 35
What is the income tax due using a 21 % federal income tax rate for a corporation with the following data: Gross income from sales: $40,000,000 Accumulated expenses for the year: $6,000,000 Depreciation charges for the year: $4,000,000
Please provide correct answer this financial accounting question
The corporate tax rates are as follows: Taxable income ($) Tax rate 0- 50,000 15% 50,001- 75,000 25% 75,001- 100,000 34% 100,001- 335,000 39% 335,001- 10,000,000 34% 10,000,001- 15,000,000 35% 15,000,001- 18,333,333 38% 18,333,334+ 35% What is the marginal tax rate for the company with a taxable income of $5,000,000?

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