Assuming Bourne's nonrecaptured net §1231 losses from years 1–5 were $292,000, what amount of Bourne's net §1231 gain for year 6, if any, is treated as ordinary income?
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Bourne Guitars, a corporation, reported a $251,000 net §1231 gain for year 6.
Problem 3-51 Part-b (Algo)
b. Assuming Bourne's nonrecaptured net §1231 losses from years 1–5 were $292,000, what amount of Bourne's net §1231 gain for year 6, if any, is treated as ordinary income?
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- Bourne Guitars, a corporation, reported a $157,000 net §1231 gain for year 6. a. Assuming Bourne reported $50,000 of nonrecaptured net §1231 losses during years 1–5, what amount of Bourne’s net §1231 gain for year 6, if any, is treated as ordinary income?Bourne Guitars, a corporation, reported a $157,000 net §1231 gain for year 6 1.) Assuming Bourne reported $50,000 of nonrecaptured net §1231 losses during years 1–5, what amount of Bourne’s net §1231 gain for year 6, if any, is treated as ordinary income? 2.) Assuming Bourne’s nonrecaptured net §1231 losses from years 1–5 were $200,000, what amount of Bourne’s net §1231 gain for year 6, if any, is treated as ordinary income?Tyson Corporation reported pretax income from operations in Year 1 of 92,000 (the first year of operations). In Year 2, the corporation experienced a $96,000 NOL (pretax loss from operations). Management is confident the company will have taxable income in excess of $120,000 in Year 3. Assume an income tax rate of 25% in Year 1 and thereafter. Tyson has no other temporary differences. Required a. Provide the Year 1 and Year 2 income tax entries that Tyson should make.
- During the current year, Dale Corporation sold a segment of its business at a gain of $315,000.Until it was sold, the segment had a current period operating loss of $112,500. The company had$1,275,000 from continuing operations for the current year.Prepare the lower part of the income statement, beginning with the $1,275,000 income fromcontinuing operations. Follow tax allocation procedures, assuming that all changes in incomeare subject to a 20% income tax rate. Disregard earnings per share disclosures. (Round all calculations to nearest dollar amount.)Required information [The following information applies to the questions displayed below.] Hafnaoui Company reported pretax net income from continuing operations of $1,136,000 and taxable income of $678,500. The book-tax difference of $457,500 was due to a $305,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $122,000 due to an increase in the reserve for bad debts, and a $274,500 favorable permanent difference from the receipt of life insurance proceeds. At the end of the year, the reserve for bad debts had a balance of $152,500, the beginning balance in the account was $30,500. Hafnaoul's beginning book (tax) basis in its fixed assets was $1,042,000 ($863,000) and its ending book (tax) basis is $1,605,000 ($1,121,000). b. Compute Hafnaoul Company's deferred income tax expense or benefit. N Enter all numbers as a positive number and indicate whether a deferred tax expense or a deferred tax benefit. Deferred income tax expenseKk.192. Vertical, Inc., has a 2022 net § 1231 gain of $67,000 and had a $22,000 net § 1231 loss in 2021. For 2022, Vertical’s net § 1231 gain is treated as: $45,000 long-term capital gain and $22,000 ordinary loss. $67,000 ordinary gain. $45,000 long-term capital gain and $22,000 ordinary gain. $67,000 capital gain
- Heron Corporation is a personal service corporation. It had $230,000 of net active income, $40,000 of portfolio income, and a $250,000 passive loss during the year. How much is Heron’s taxable income for the year? a. $20,000. b. $40,000 c. $270,000 d. $520,0002. Sage Corporation has pretax financial income (or loss) from 2015 through 2021 as follows. Income (Loss) Tax Rate 2015 $52,800 25 % 2016 (77,000 ) 20 % 2017 99,000 20 % 2018 33,000 20 % 2019 115,500 20 % 2020 (66,000 ) 25 % 2021 142,000 25 % Pretax financial income (loss) and taxable income (loss) were the same for all years since Sage has been in business. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized. (a) What entries for income taxes should be recorded for 2016? (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 Debit Credit Save for Later Attempts: 0 of 1 used Submit…Danube Corporation operates a theatrical costume shop. Taxable income for the current year is $1,000,000. What is Danube's income tax liability? Oa. $0 Ob. $210,000 Oc. $370,000 Od. $390,000 Previclis Next
- 77. Hafnaoui Company reported pretax net income from continuing operations of $800,000 and taxable income of $500,000. The book-tax difference of $300,000 was due to a $200,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $80,000 due to an increase in the reserve for bad debts, and a $180,000 favorable permanent difference from the receipt of life insurance proceeds. At the end of the year, the reserve for bad debts had a balance of $100,000; the beginning balance in the account was $20,000. Hafnaoui's beginning book (tax) basis in its fixed assets was $1,000,000 ($800,000) and its ending book (tax) basis is $1,500,000 ($1,100,000). a) Compute Hafnaoui Company's current income tax expense. b) Compute Hafnaoui Company's deferred income tax expense or (benefit). c) Compute Hafnaoui Company's effective tax rate. d) Provide a reconciliation of Hafnaoui Company's effective tax rate with its hypothetical tax rate of 21 percent.Recording NOL Carryforward and Carryback|Carryforward Toner Corporation computed the following: Year 1 taxable income, $10,000; Year 2 taxable loss, $( 40,000). At the end of Year 2, Toner made the following estimates: Year 3 taxable income, $4,000; Year 4 taxable income, $11,000; and Year 5 taxable income, $50,000. On the basis of these estimates, Toner believes the full amount of the tax loss carryforward benefit is more likely than not to be realized. There are no other temporary differences. Tax rates are 25% for Year 1, Year 2, and Year 3; and 30% for Year 4 and Year 5. Net operating loss carryforwards can only offset a maximum of 80% of taxable income in each of the future years. Required Do not give solution in image formatAccounting The Storm Corporation, a calendar year taxpayer, incurred the following items. Compute Storm's net operating loss. Operating Income - $300,000 Operating Expenses - $350,000 Dividend Received (30% ownership) - $100,000 $30,000 $50,000 $20,000 None of the other answers