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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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