Nn.192.Subject :- Account Tax Drill - Allocation of DeductionsKhan, Inc. a domestic corporation, reports $650,000 of gross income and an $80,000 expense, all related to real estate activities.Determine the expense allocation and apportionment using gross income as a basis.When required, round any division to three decimal places. Use rounded amounts in subsequent computations.Sales incomeRental IncomeFeedbackForeignGross Income$500,00050,000$550,000U.S.Gross Income$85,00015,000$100,000$$ApportionmentForeign72,000$ 61,538.462 X 10,461.538 X8,000 $ 6,153.846 X $ 1,846.154 XAllocationApportionmentU.S.$80,00067,692.308 X 12,307.692 XCheck My WorkThe United States levies a tax on taxable income. Deductions and losses, therefore, must be allocated and apportioned betweeforeign-source gross income to determine U.S. and foreign-source taxable income.

Given,The total gross income is $650,000 and expense $80,000.The expenses need to be apportioned…

Determine the expense allocation and apportionment using gross income as a basis. When required, round any division to three decimal places. Use rounded amounts in subsequent computations. Sales income Rental Income Foreign Gross Income $500,000 50,000 $550,000 U.S. Gross Income $85,000 15,000 $100,000 Apportionment Foreign Apportionment U.S. 72,000$ 61,538.462 X 10,461.538 X 6,153.846 X $ Allocation 8,000 ✓ $80,000 1,846.154 X 67,692.308 X 12,307.692 X

Determine the expense allocation and apportionment using gross income as a basis. When required, round any division to three decimal places. Use rounded amounts in subsequent computations. Sales income Rental Income Foreign Gross Income $500,000 50,000 $550,000 U.S. Gross Income $85,000 15,000 $100,000 Apportionment Foreign Apportionment U.S. 72,000$ 61,538.462 X 10,461.538 X 6,153.846 X $ Allocation 8,000 ✓ $80,000 1,846.154 X 67,692.308 X 12,307.692 X

FINANCIAL ACCOUNTING

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

Nn.192.

Subject :- Account

Tax Drill - Allocation of Deductions
Khan, Inc. a domestic corporation, reports $650,000 of gross income and an $80,000 expense, all related to real estate activities.
Determine the expense allocation and apportionment using gross income as a basis.
When required, round any division to three decimal places. Use rounded amounts in subsequent computations.
Sales income
Rental Income
Feedback
Foreign
Gross Income
$500,000
50,000
$550,000
U.S.
Gross Income
$85,000
15,000
$100,000
$
$
Apportionment
Foreign
72,000$ 61,538.462 X 10,461.538 X
8,000 $ 6,153.846 X $ 1,846.154 X
Allocation
Apportionment
U.S.
$80,000
67,692.308 X 12,307.692 X
Check My Work
The United States levies a tax on taxable income. Deductions and losses, therefore, must be allocated and apportioned betwee
foreign-source gross income to determine U.S. and foreign-source taxable income.

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