Adjusting Balance Sheet and Income Statement for Asset Disposal On its 2019 income statement, American Airlines reported a gain of $102 million on sale of property and equipment that the company had used for the prior five years. For an accurate year by year ass we want to adjust American Airlines' financial statements for each of the past five years (including the current year). Assume that the company's tax rate is 22%. a. For the income statement effects related to the gain on asset disposal, identify with numbers the adjustments for each of the five years 2015 to 2019 for the following line items. Note: Use a negative sign to indicate if an adjustment decreases an account balance. Note: Round answers to two decimals (for example, enter 14.56 for 14.55555). 2016 Income Statement Adjustments ($ millions) Current Year Gain Adjustments: Gain on disposal (reversal) Tax expense (reversal) Net income (reversal) Allocation of Gain Adjustments: Depreciation expense Tax expense Net income (allocation) Total net income (reversal + allocation) Balance Sheet Adjustments ($ millions) Accumulated depreciation Deferred tax liability Retained Earnings $ 2015 $ $ (20.4) $ 4.49 ✔ 15.91 $ 25.46 x $ (20.4) $ 4,49 ✔ 15.91 38.19 x $ 2015 (20.4) $ 4.49 ✔ 15.91 $ 2017 2016 20.4 x $ 0x 0 x $ (20.4) $ 4.49 ✔ 15.91 ✔ 38.18 x $ b. For the balance sheet effects related to the gain on asset disposal, identify with numbers the adjustments for each of the five years 2015 to 2019 for the following line items. Note: Use a negative sign to indicate if an adjustment decreases an account balance. Note: Round answers to two decimals (for example, enter 14.56 for 14.55555). 2017 20.4 x $ 4.49 x (24.98) x $ c. What purpose is there to adjusting the income statement and balance sheet? To correct for overstated depreciation expense across years + ✓ 2018 A (20.4) ✔ 4.49 ✔ 15.91 ✔ 50.92 x $ $ 2018 20.4 x $ 4.49 X 0 x $ 2019 2019 (102) ✔ (22.44) ✔ (79.56) ✔ (20.4) ✔ 4.49 ✔ 15.91 ✔ (66.77) X 0✔ 0✓ 0✔

8.Please answer all the tables in their entirely

Compute ROA and adjusted ROA CSX Corporation reported the following in its tax footnote to its 2019 financial statements. Use this information to answer the requirements. $ millions 2019 2018 2017 Net income $3,331 $3,309 $5,471 Interest expense, net 737 639 546 Average total assets 37,493 36,234 35,577   Compute (a) return on assets and (b) the adjusted return on assets for each of the three years. Assume a statutory tax rate of 37% for 2017 and 22% for 2018 and 2019. a. Compute return on assets (ROA) for 2017, 2018, and 2019 Note: 1. Select the appropriate numerator and denominator used to compute ROA from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute ROA for each year.   Year Numerator Denominator ROA     AnswerNet incomeNet income (adjusted)Interest expense, netAverage total assetsAverage total equity AnswerNet incomeNet income (adjusted)Interest expense, netAverage total assetsAverage total equity     2017 Answer…

Current Attempt in Progress The following information is available for Bramble Corporation for 2024 (its first year of operations). 1. Excess of tax depreciation over book depreciation, $42,400. This $42,400 difference will reverse equally over the years 2025-2028. 2. Deferral, for book purposes, of $20,300 of rent received in advance. The rent will be recognized in 2025. 3. Pretax financial income, $272,300. 4. Tax rate for all years, 30%. (a) Your answer is correct. Compute taxable income for 2024. Taxable income $ 250200 Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2024. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Income Tax Expense Deferred Tax Asset Deferred Tax Liability Income Tax Payable Debit…

Computing, Analyzing and Interpreting Residual Operating Income (ROPI) In its annual report for the fiscal year ended July 27, 2019, Cisco Systems reports the following ($ million): Net operating profit after tax (NOPAT) Net operating assets (NOA) beginning July 27, 2019 $3,404 $6,668 Assuming the following weighted average cost of capital (WACC), what is Cisco's residual operating income (ROPI) for the fiscal year ended July 27, 2019? WACC 7.6% ROPI $ 2,896.192 b. At what level of WACC would Cisco not report positive residual operating income for the year? WACC 51 %

Current Attempt in Progress In 2023, Crane Ltd., which follows IFRS, reported accounting income of $960,000 and the 2023 tax rate was 20%. Crane had two timing differences for tax purposes: CCA on the company's tax return was $450,000. Depreciation expense on the financial statements was $280,000. These amounts relate to assets that were acquired on January 1, 2023, for $1,800,000. Accrued warranty expense for financial statement purposes was $132,000 (accrued expenses are not deductible for tax purposes). This is the first year Crane offers warranties. Both of these timing differences are expected to fully reverse over the next four years, as follows: Year 2024 2025 2026 2027 (a) Depreciation Difference $55,000 45,000 40,000 30,000 Warranty Expense Rate $18,000 20% 28,000 20% 38,000 18% 48.000 18% $170.000 $132,000 Calculate income taxes payable for 2023. Income taxes payable $

For the quarter ended September 30, 2021, how much should GREEN report as net income?

Please show each step of calculation. Thanks in advance.

Dengar

Gray Companys financial statements showed income before income taxes of 4,030,000 for the year ended December 31, 2020, and 3,330,000 for the year ended December 31, 2019. Additional information is as follows: Capital expenditures were 2,800,000 in 2020 and 4,000,000 in 2019. Included in the 2020 capital expenditures is equipment purchased for 1,000,000 on January 1, 2020, with no salvage value. Gray used straight-line depreciation based on a 10-year estimated life in its financial statements. As a result of additional information now available, it is estimated that this equipment should have only an 8-year life. Gray made an error in its financial statements that should be regarded as material. A payment of 180,000 was made in January 2020 and charged to expense in 2020 for insurance premiums applicable to policies commencing and expiring in 2019. No liability had been recorded for this item at December 31, 2019. The allowance for doubtful accounts reflected in Grays financial statements was 7,000 at December 31, 2020, and 97,000 at December 31, 2019. During 2020, 90,000 of uncollectible receivables were written off against the allowance for doubtful accounts. In 2019, the provision for doubtful accounts was based on a percentage of net sales. The 2020 provision has not yet been recorded. Net sales were 58,500,000 for the year ended December 31, 2020, and 49,230,000 for the year ended December 31, 2019. Based on the latest available facts, the 2020 provision for doubtful accounts is estimated to be 0.2% of net sales. A review of the estimated warranty liability at December 31, 2020, which is included in other liabilities in Grays financial statements, has disclosed that this estimated liability should be increased 170,000. Gray has two large blast furnaces that it uses in its manufacturing process. These furnaces must be periodically relined. Furnace A was relined in January 2014 at a cost of 230,000 and in January 2019 at a cost of 280,000. Furnace B was relined for the first time in January 2020 at a cost of 300,000. In Grays financial statements, these costs were expensed as incurred. Since a relining will last for 5 years, Grays management feels it would be preferable to capitalize and depreciate the cost of the relining over the productive life of the relining. Gray has decided to nuke a change in accounting principle from expensing relining costs as incurred to capitalizing them and depreciating them over their productive life on a straight-line basis with a full years depreciation in the year of relining. This change meets the requirements for a change in accounting principle under GAAP. Required: 1. For the years ended December 31, 2020 and 2019, prepare a worksheet reconciling income before income taxes as given previously with income before income taxes as adjusted for the preceding additional information. Show supporting computations in good form. Ignore income taxes and deferred tax considerations in your answer. The worksheet should have the following format: 2. As of January 1, 2020, compute the retrospective adjustment of retained earnings for the change in accounting principle from expensing to capitalizing relining costs. Ignore income taxes and deferred tax considerations in your answer.