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- The following facts relate to Sandhill Corporation. 1. 2. 3. 4. 5. 6. 7. 8. (a) Deferred tax liability, January 1, 2025, $28,400. Deferred tax asset, January 1, 2025, $0. Taxable income for 2025, $114,950. Pretax financial income for 2025, $221,000. Cumulative temporary difference at December 31, 2025, giving rise to future taxable amounts, $290,400. Cumulative temporary difference at December 31, 2025, giving rise to future deductible amounts, $42,350. Tax rate for all years, 20%. The company is expected to operate profitably in the future. Compute income taxes payable for 2025. Prepare the journal entry to record income tax expense, deferred income taxes and income tax payable for 2025An investor company purchased 17,000 of the 50,000 outstanding shares of the investee company's common stock for $338,000 on January 1, 2021. During 2021, the investee company declared dividends of $33,000 and reported earnings for the year of $158,000. If the investor company uses the equity method of accounting for its investment in the investee company, it should report Dividend Revenue from the investee for 2021 in the amount of $_______. (If there is no Dividend Revenue, then enter 0. Do not round your answer for any part of the computation.)Assume that Shoreline Hotel Inc., (SHI) decides to make the following entry on December 31, 2018. Current tax rate is 40%. DR Current income tax expense $634,800 CR Income tax payable $634,800 This would imply that Select one: a. the taxable income for 2018 was different than the accounting income. b. the income tax expense reported by SHI on its income statement would be $750,000. c. the taxable income for 2018 was determined to be $1,587,000. d. All of the above. e. None of the above.
- Determine the amount of the dividends received deduction in each of the following instances. In all cases, the net income figure includes the full dividend. Use Dividends deduction table. Dividend of $11,500 from a 45% owned corporation; taxable income before DRD of $54,500. Dividend of $19,900 from a 15% owned corporation; taxable income before DRD of $78,000. Dividend of $13,000 from a 60% owned corporation; taxable income before DRD of $7,000. Dividend of $3,500 from a 10% owned corporation; taxable income before DRD of $2,760. a. Dividend received deduction b. Dividend received deduction c. Dividend received deduction d. Dividend received deductionX Corp has $500 of book income. Included in the book income is $10 of dividends from a 10%-owned corporation and $20 of tax-exempt interest. What is the tax income reconciled to on Schedule M-1?An investor company purchased 60,000 of the 500,000 outstanding shares of the investee company's common stock on January 1, 2021. During 2021, the investee company reported earnings for the year of $459,000, and declared and paid an $0.52 per share cash dividend during 2021. If the investor company uses the fair value method of accounting for its investment in the investee company, it should report Dividend Revenue from the investee for 2021 in the amount of $_______. (If there is no Dividend Revenue, then enter 0. Do not round your answer for any part of the computation.)
- Bravery Pte Ltd, was incorporated on 16 January 2019 as a manufacturing company with an accounting year end of 31 December. It is wholly owned by XYZ Ltd. It has a chargeable income before exempt income of $1,000,000 for the year ended 31 December 2021. Calculate its net tax payable for Year of Assessment 2022. 1) $120,575 2) $148,750 3) $144,075 4) $152,575The "other income" section of A Company's Statement of Comprehensive Income contains P5,000 in interest income, P15,000 equity in B Co. earnings, and P25,000 gain on sale of available-for-sale securities. Assuming the sale of the securities increased the current portion of income tax expense by P10,000, determine the amount of A's reclassification adjustment to other comprehensive income.Jacob Mills has provided you with the following information: 2019 2020 2021 Taxable capital gains on sale of qualified small business corporation shares . . . . . . . . . . . . . . . . . . . . . $75,000 - $300,000 Business investment loss (before ssec. 39(9) adjustment) - - 160,000 Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . .. - $1,200 2,400 Grossed-up taxable dividends . . . . . . . . . . . . . . . . . .. - 240 - Net rental income (loss) . . . . . . . . . . . . . . . . . . . . . . . - (1300) (320) Carrying charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . - 3,075 - The 2019 taxable capital gain was fully offset by a capital gains deduction in that year. —REQUIRED Determine Jacob’s capital gains deduction for 2021 supported by all the necessary calculations. Assume that there were no other capital transactions before 2019.
- An entity reported pretax financial income of P8.000,000 for the current year. The taxable income was P7,000,000 for the current year. The difference is due to accelerated depreciation for income tax purposes. The income tax rate is 30% and the entity made estimated tax payment of P500,000 during the current year. The amount should be reported as current tax expense for the current year?Marcia Itd declared a divident in august 2021 of $37500. In febuary 2022 stan Itd paid an interim divident of $22500 and marcia Itd paid an interim divident of $11250. At the 30th june 2020 there were intercompany accounts balance of $125000. marcia Ite rented a warehouse from stan Itd and paid annual rent of $35000 to stan Itd. Prepare the consolidated journal entries at 30th june 2022 to elimunate the intragroup itemsThe following items were taken from the adjusted trial balance of the Dylex Corporation for the year ended December 31, 2020. Assume an average 25% income tax on all ens. The accounting period ends December 31, and all amounts given are pre-tax. Dylex Corporation had 11,000 common shares outstanding in 2020 and follows IFRS Cost of goods sold Depreciation expense, building Gain on exchange Gain on sale of assets from discontinued operations Insurance expense Interest expense Interest income Loss on sale of trading investment 140,000 23,000 a) Prepare a multi-step income statement in good form. Please make sure your final anewarts) are accurate to 2 decimal places Dylex Corporation For the Year Ended December 31, 200 125,000 100,000 54,000 52,000 X 58,000 135,000 Operating loss of discontinued operation to disposal date 100,000 Salaries expense 160.000 Sales ** 900,000 REQUIRED DISCLOSURES b) Calculate basic eamings per share (EPS) from continuing operations. Please make sure your final…