For 2020, Forrway Corporation, an Accrual Basis calendar year corporation, had Net Income Per Books of $111.550 and the following transactions Premiums on Life Insurance Policy on its key employees-$6.000, Excess Capital Losses-$12.000, Excess Tax Depreciation-$9,000: Life Insurance Proceeds on ife of its key employees-$65.000: Rent Income received in 2020- $30,000 (S20,000 is prepaid and relates to 2020): Tax-Exempt Interest Income - $8.000, Federal Income Tax lability for 2020 -$15.450, Prepaid Rent received and properly taxed in 2019 (but not eamed for Financial Accounting purposes until 2020)-$5,000, Interest Expense on Tax-Exempt Interest Income item-$2.000. The total amount" added" to Net Income Per Books for Forway Corporation in its Schedule M-1 Reconcilation for the tax year of 2020 is OS 80,000 O$ 55.450 OS 87.000 O$167.000
For 2020, Forrway Corporation, an Accrual Basis calendar year corporation, had Net Income Per Books of $111.550 and the following transactions Premiums on Life Insurance Policy on its key employees-$6.000, Excess Capital Losses-$12.000, Excess Tax Depreciation-$9,000: Life Insurance Proceeds on ife of its key employees-$65.000: Rent Income received in 2020- $30,000 (S20,000 is prepaid and relates to 2020): Tax-Exempt Interest Income - $8.000, Federal Income Tax lability for 2020 -$15.450, Prepaid Rent received and properly taxed in 2019 (but not eamed for Financial Accounting purposes until 2020)-$5,000, Interest Expense on Tax-Exempt Interest Income item-$2.000. The total amount" added" to Net Income Per Books for Forway Corporation in its Schedule M-1 Reconcilation for the tax year of 2020 is OS 80,000 O$ 55.450 OS 87.000 O$167.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![QUESTION 28
For 2020, Forway Corporation, an Accrual Basis calendar year corporation, had Net Income Per Books of $111,550 and the following transactions
Premiums on Life Insurance Policy on its key employees -$6,000, Excess Capital Losses - $12.000, Excess Tax Depreciation - $9,000, Life Insurance
Proceeds on life of its key employees - $65.000: Rent Income received in 2020 - $30,000 (S20,000 is prepaid and relates to 2020): Tax-Exempt Interest
Income - $8,000, Federal Income Tax liability for 2020 - $15,450; Prepaid Rent received and properly taxed in 2019 (but not eamed for Financial
Accounting purposes until 2020) - $5.000; Interest Expense on Tax-Exempt Interest Income item - $2.000. The total amount "added" to Net Income Per
Books for Forrway Corporation in its Schedule M-1 Reconciliation for the tax year of 2020 is
OS 80.000
O$ 55,450
OS 07.000
$167.000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4b6bb6d7-d3cb-4446-acdb-47065fe4d069%2F0d4c8aea-b2f5-4ff6-83e3-64c00e8316d0%2Fnemod1_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 28
For 2020, Forway Corporation, an Accrual Basis calendar year corporation, had Net Income Per Books of $111,550 and the following transactions
Premiums on Life Insurance Policy on its key employees -$6,000, Excess Capital Losses - $12.000, Excess Tax Depreciation - $9,000, Life Insurance
Proceeds on life of its key employees - $65.000: Rent Income received in 2020 - $30,000 (S20,000 is prepaid and relates to 2020): Tax-Exempt Interest
Income - $8,000, Federal Income Tax liability for 2020 - $15,450; Prepaid Rent received and properly taxed in 2019 (but not eamed for Financial
Accounting purposes until 2020) - $5.000; Interest Expense on Tax-Exempt Interest Income item - $2.000. The total amount "added" to Net Income Per
Books for Forrway Corporation in its Schedule M-1 Reconciliation for the tax year of 2020 is
OS 80.000
O$ 55,450
OS 07.000
$167.000
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