5 A. 21,450 B. 22, 200 C. 23,350 D. 24, 000 E. 25, 800The following figures are reported by Payne Incorporated and its 80% owned subsidiary, Shelley Company, for the year ended December 31 of the current year.Shelley paid dividends of $25,000 during the current year.ItemsSalesCost of Goods SoldOperating ExpensesDividend IncomeNet IncomePayne Incorporated$ 200,000(100,000)(50,000)10,000$ 60,000Shelley Company$ 150,000(100,000)(25,000)30$ 25,000A goodwill impairment loss relating to Payne's takeover of Shelley is $2,500 per year. In the previous year, unrealized gains of $10,000 on upstream transfers weredeferred to the current year. In the current year, unrealized gains of $5,000 on upstream sales were deferred to next year.Assuming a 30% income tax rate, what is the amount of income tax currently payable?

> Holding company = P inc.> Subsidary company = S co.> Holding $% = 80% of equity>…

Answered: Assuming a 30% income tax rate, what is…

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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The Statement of Comprehensive Income for the year ended 31 December 2014 Parent plc Subsid plc Sales Revenue 830,000 235,000 597,500 232,500 76,750 4,500 160,250 25,750 134,500 90,000 44,500 Cost of Sales Gross Profit 142,500 92,500 60,000 Expenses Dividend received from Subsid plc Profit before tax 32,500 16,750 15,750 6,000 9,750 Income Tax expense Profit after tax Dividends paid Retained Earnings brought forward from previous years 211,500 256,000 124,500 134,250 Parent plc acquired 75% of the shares in Subsid plc on 1 January 2010 when Subsid's retained earnings were £70,000. Non-controlling interests are measured using Method 1. During the year Parent plc sold Subsid plc goods for £30,000 which represented cost plus 25%. 30% of these goods were still in stock at the end of the year. During the year Parent plc and Subsid plc paid dividends of £90,000 and £6,000 respectively. The opening balances of retained earnings for the two companies were £211,500 and £124,500 respectively.…
CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 448,600 297,150 151,450 98,600 5,000 47,850 19,276 $ 28,574 Cost of goods sold Gross profit Operating expenses Interest expense Profit before taxes Income tax expense Net profit Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Property, plant and equipment, net Total assets Req 1 and 2 Req 3 Req 4 CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity Req 5 8,000 Accounts payable 8,800 Accrued wages payable 32,400 Income taxes payable 2,750 Share capital 150,300 Retained earnings $ 238,400 Total liabilities and equity Complete this question by entering your answers in the tabs below. Compute the current ratio and acid-test ratio. 36,150 Long-term note payable, secured by mortgage on property, plant and equipment Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days'…
Sanborn Corporation Comparative Income Statements in € For the Years Ended December 31, 20X8 and 20X7 20X8 20X7 Net Sales 3,276,800 3,146,400 Cost of goods (2,088,800) (2,008,400) Gross margin 1,188,000 1,138,000 Operating expenses Selling expenses (476,800) (518,000) General & administrative expenses (447,200) (423,200) Total operating expenses (924,000) (941,200) Income from operations 264,000 196,800 Interest expense (65,600) (39,200) Net income before taxes 198,400 157,600 Income taxes (62,400) (56,800) Net income after taxes 136,000 100,800 Earnings per share 3.40 2.52 Sanborn Corporation Comparative Balance Sheets in € December 31, 20X8 and 20X7 Assets 20X8 20X7 Liabilities & Stockholders' Equity 20X8 20X7 Fixed assets: Stockholders' equity: Property, plant and…
The following information is available for Sunland Corporation for the year ended December 31, 2022: sales revenue $840,000, other revenues and gains $91,000, operating expenses $101,000, cost of goods sold $466,000, other expenses and losses $30,500, and preferred stock dividends $40,950. The company's tax rate was 20%, and it had 70,000 common shares outstanding during the entire year. (a) Your Answer Correct Answer Your answer is partially correct. Prepare a corporate income statement. (List other revenues before other expenses.)
Presented below are the condensed income statements of Maine Corporation for the years ended December 31, 20x2, and 20x1. 20x2 20x1 Sales P2,500,000 P2,450,000 Cost of Goods Sold 1,675,000 1,650,000 Gross Profit 825,000 800,000 Operating Expenses 337,500 325,000 Operating income 487,500 475,000 Gain on sale of division 100,000 - 587,500 475,000 Income tax expense 176,250 142,500 Net income P411,250 P332,500 On October 10, 20x2, Maine entered into an agreement to sell the assets of one (1) of its geographical segments. The geographical segment comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the company. The segment was sold on December 31, 20x2, for P875,000.…
Common-Size Income StatementsConsider the following income statement data from the Ross Company: Current Year Previous Year Sales revenue $529,000 $454,000 Cost of goods sold 336,000 279,000 Selling expenses 109,000 103,000 Administrative expenses 64,000 58,000 Income tax expense 7,800 5,400 Prepare common-size income statements for each year. Note: Round answers to one decimal place (ex: 0.2345 = 23.5%). Note: Compute percentages for each "Total" (do not add prior percentage amounts to arrive at Totals). ROSS COMPANYCommon-Size Income Statements(Percent of Sales Revenue) Current Year Previous Year Sales Revenue Answer Answer Cost of Goods Sold Answer Answer Answer Answer Answer Answer Selling Expenses Answer Answer Administrative Expenses Answer Answer Total Answer Answer Income before Income Taxes Answer Answer Answer Answer Answer Answer Answer Answer PreviousSave AnswersNext
Walang Kayo Company Question: Under accrual basis, what amount should be reported as gross sales for the current year? a. P6,650,000 b. P6,600,000 c. P6,350,000 d. P6,550,000
Calculating the Average Total Assets and the Return on Assets The income statement, statement of retained earnings, and balance sheet for Somerville Company are as follows. Also, assume a tax rate of 31%. Somerville CompanyIncome StatementFor the Year Ended December 31, 20X2 Amount Percent Net sales $8,281,989 100.0% Less: Cost of goods sold (5,383,293) 65.0 Gross margin $2,898,696 35.0 Less: Operating expenses (1,323,368) 16.0 Operating income $1,575,328 19.0 Less: Interest expense (50,000) 0.6 Income before taxes $1,525,328 18.4 Less: Income taxes (31%)* (472,852) 5.7 Net income $1,052,476 12.7 * Includes both state and federal taxes. Somerville CompanyStatement of Retained EarningsFor the Year Ended December 31, 20X2 Balance, beginning of period $1,979,155 Net income $1,052,476 Total $3,031,631 Preferred dividends (80,000) Dividends to common stockholders (201,887) Balance, end of period…
DB 4.8 - Comprehensive Income Fulton Corporation reported the following for the current year: net sales $7,500,000; cost of goods sold $4,450,000; selling and administrative expenses $1,420,000; and an unrealized holding gain on available-for-sale securities $75,000. Required: Prepare a statement of comprehensive income (as discussed and illustrated on pages 22-23 of Chapter 4), using: a) the one statement format and b) the two statement format Ignore income taxes and earnings per share.
Skysong Inc., a greeting card company, had the following statements prepared as of December 31, 2020. SKYSONG INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $6,100 $6.900 Accounts receivable 61.900 50,500 Short-term debt investments (available-for-sale) 34,800 18,200 Inventory 39,900 59,800 Prepaid rent 4,900 4.000 Equipment 155,500 131,200 Accumulated depreciation-equipment (34,800 ) (25,300 ) Copyrights 45,700 50.200 Total assets $314,000 $295,500 Accounts payable $46,200 $39,700 Income taxes payable 4,000 6,100 Salaries and wages payable 7,900 4,000 Short-term loans payable 7,900 10,000 Long-term loans payable 59.800 68,600 Common stock, $10 par 100,000 100,000 Contributed capital, common stock 30,000 30,000 Retained earnings 58,200 37,100 Total liabilities & stockholders' equity $314,000 $295,500
Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 31,600 88,000 112,500 10,650 281,000 $ 36,250 $ 38,400 62,000 83,800 9,350 249,500 49,500 52,500 4,500 235,000 Total assets $523,750 $440,900 $ 379,900 Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $128,400 $ 74,750 $ 50,800 97,000 160,500 137,850 98,250 160,500 107,400 81,600 160,500 87,000 $523,750 $440,900 $ 379,900 Total liabilities and equity The company's income statements for the Current Year and 1 Year Ago, follow. 1 Yr Ago $ 620,000 Current Yr For Year Ended December 31 Sales Cost of goods sold other operating expenses Interest expense Income tax expense Total costs and expenses $755,000 $445,450 234,050 11,300 9,550 $390,600 148,800 12,700 8,925 561,025 700,350 $ 54,650 $ 58,975 Net income $4 3.40 $4 %24 3.67 Earnings per share For both…
17 Rainee Corporation's revenue for the current year were as follows: Consolidated revenue per income statement P1,200,000 Intersegment sales 180,000 Intersegment transfers 60,000 Combined revenues of all operating segments P1,440,000 Rainee has a reportable segment if that operating segment's revenues is at least_

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