During 2020, Liselotte Company reported income of $1,500,000 before income taxes and realized a gain of $450,000 on the disposal of assets related to a discontinued operation. The criteria for classification as a ­discontinued operation is appropriate for this sale. The income is subject to income taxation at the rate of 34%. The gain on the sale of the plant is taxed at 30%. Indicate an appropriate presentation of these items in the income statement.

Q: For financial reporting, Clinton Poultry rarms nas used the declining-palance metnoa or depreciation…

A: Depreciation expense is the cost of an asset that has been depreciated for a single period, and…

Q: 9. The present value of a bond is also known as its face value. b) market price. c) future value. d)…

A: The present value of a bond is known as it's market value, whereasFace value is the value for which…

Q: Tor statem reporting, estimated losses on disposal of unused plant facilities of Rp1.500.000. The…

A: Deferred tax Asset or liability is arises due to temporary differences between tax records and…

Q: Sweet Inc. incurred a net operating loss of $489,000 in 2020. The tax rate for all years is 20%.…

A: Operating Loss Carry forward: The operating loss is considered as negative taxable income. When the…

Q: On April 1, 2020, Desert Company decided to dispose of their Scorpion Division. Desert sold Scorpion…

A: Net income is a after tax income. In the given question, there are incomes from continuing and…

Q: Swifty Corporation's pre-tax accounting income of $748,000 for the year 2023 included the following…

A: Detailed explanation: Swifty's normalized earnings for 2023 were calculated by making adjustments to…

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

A: Financial statements are those statements which are prepared at the end of accounting period. The…

Q: AP Trayer Corporation has income from continuing operations of $290,000 for the year ended December…

A: For investors and analysts, comprehensive income is crucial because it depicts a company's whole…

Q: During 2023, Door Inc. decided to dispose of Bell Division, which is considered a separate reporting…

A: The company is doing business to generate a profit. Sometimes, a company operates in two or more…

Q: At the beginning of 2021, Crane Co. purchased an asset for $1200000 with an estimated useful life of…

A: The correct answer is  $978000$720000

Q: amount should Munoz report as its current income tax liability on its December 31, 2022 statement of…

A: Income tax liability refers to the amount which is required to pay to the authorities of taxation.…

Q: Current Attempt in Progress At the beginning of 2020, Sandhill Construction Company changed from the…

A: The profit-sharing plan refers to the type of retirement plan which helps an employee to be a part…

Q: nd deferred income tax liability at December 31, 2020. Do this for each item and identify any…

A: Pay as you earn system or tax deduction at source in some countries are the advance tax payment…

Q: During 2022 and 2023, Faulkner Manufacturing used the sum-of-the-years' - digits (SYD) method of…

A: Depreciation is used to record expenses of fixed assets over the life of the asset. It can be…

Q: Trayer Corporation has income from continuing operations of $254,000 for the year ended December 31,…

A: Income from continuing operations: It is the after tax income generated by a company from its…

Q: On January 2, 2024, Tobias Company began using straight-line depreciation for a certain class of…

A: Changing the method of depreciation involves altering the way a company allocates the cost of its…

Q: Lawrence has pre-tax profit from all operations in 2023 of $39 million. This amount includes a $10…

A: The net income represents the total income after all the expenses and losses. The net income shows…

Q: Fogg Corporation's comparative balance sheet at December 31, 2020 and 2019 reported accumulated…

A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its…

Q: On January 1, 2021. Ameen Company purchased major pieces of manufacturing equipment for a total of…

A: Deferred tax liability is the amount of taxes that are required to be paid in the future. Thus, this…

Q: net income before taxes and depreciation

A: Any company has to file taxes as specified by the income tax act. However, there might be…

Q: The Skywalker Corporation finalized the sale of its droid manufacturing division for $9.4 million on…

A: Operating Income -An accounting tool used to determine a company's profits from its main business…

Q: Bramble Corporation's pre-tax accounting income of $724,000 for the year 2023 included the following…

A: To calculate the normalized earnings amount for Bramble Corporation in 2023, we need to adjust the…

Q: The following information is available for Wenger Corporation for 2019 (its first year of…

A: aCompute taxable income for 2019.

Q: Do not use Ai

A: a. Income Statement Effects (2015-2019)To adjust American Airlines' financial statements for the…

Q: At Carla Vista Co., events and transactions during 2020 included the following. The tax rate for all…

A: Taxes are the amount of dues or liabilities that is to be paid by individual on account of income…

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.