Forever Incorporated’s partial income statement after its first year of operation is as follows: Income before income taxes   P3,750,000 Income tax expense          Current P1,035,000        Deferred 90,000 1,125,000 Net Income   P2,625,000   Forever uses straight-line method of depreciation for financial reporting purposes and accelerated depreciation method for tax purposes. The amount charged to depreciation expenses on its tax return this year was P1,800,000. No other differences existed between book income and taxable income except for the amount of depreciation. Assuming a 30% tax rate, what amount was deducted for depreciation on the company’s book for the current year?

Q: During the current year, Sparrow Corporation, a calendar year C corporation, had operating income of…

A: The correct answer is A. $33,600Explanation:Since there is no provided corporate tax rate, we will…

Q: The annual revenue, expenses, and depreciation for a company are $130,000; 32,000; and $12,000,…

A: Revenue = 130,000 Expenses = 32000 Depreciation = 12000 Tax Rate = 23%

Q: Whipporwill, Incorporated's, net income for the most recent year was $9,551. The tax rate was 23…

A: We need to use the following equations to solve the above problems

Q: Martin Ltd, in the first year of its operations, reported the following information regarding its…

A: Income tax is a tax levied on the net earnings of individuals, LLPs, or corporations. Individual,…

Q: Li Corporation reported pretax book income of $705,000. Tax depreciation exceeded book depreciation…

A: The deferred tax liability is created when the taxes to be paid as per income tax are greater than…

Q: percent tax rate. Given the following pre-tax amounts, what would be the income tax expense reported…

A: For ascertaining the income tax liability of any tax payer, the pre-tax amounts of the business…

Q: Trevi Corporation recently reported an EBITDA of $32,800 and $9,500 of net income. The company has…

A: given, EBITDA =$32,800  net income= $9,500  interest expense= $6,700  corporate tax rate = 35 %

Q: An entity reported the following information during the first year of operations: Pretax financial…

A: The income tax is calculated on the taxable income of the company. It is calculated by multiplying…

Q: The King Corporation has total annual revenue of $800,000; expenses other thandeprecation of…

A: Solution: Pretax income = Annual revenue - Expenses other than depreciation - Depreciation expense…

Q: For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income…

A: Deferred tax liability means liability calculated by finding difference between the comapany taxable…

Q: Martin Ltd, in the first year of its operations, reported the following information regarding its…

A: Income tax is a tax levied on the net earnings of individuals, LLPs, or corporations. Individual,…

Q: ABC Company prepares financial statements under IFRS. At December 13, Year 4, ABC's income for…

A: Net income: P100,000 Depreciation for accounting purposes: P10,000 Depreciation for tax purposes:…

Q: For the first year of operations, Fidelity Engineering reported pretax accounting income of…

A: Deferred tax asset: The deferred tax asset is created when the taxes to be paid as per income tax…

Q: During its first year of operations, Alcoa Corporation reported a net operating loss of $800,000 for…

A: Net operating loss = $800,000Tax rate = 25%Net income = Net operating loss - Tax rate

Q: 46. Akoto Corporation reported pretax book income of $2,000,000. Tax depreciation exceeded book…

A: For income tax purposes, tax depreciation is the systematic allocation of a physical asset's…

Q: R's effective income tax rate is 32% for 2002. What amount should R 5 points report in its 2002…

A: Solution: Current provision for income taxes  in 2020 income statement = Taxable income * Tax rate

Q: increased under the current law to 30% next year and 35% for all subsequent years. At the end of the…

A: To calculate the deferred tax liability related to the excess depreciation, we need to determine the…

Q: Staycate Travels Inc. reports a gross profit of $35,000, interest expense of $4,000, a tax rate of…

A: Formula used: Earnings after Tax = [ Gross profit - Interest expense - Depreciation expense ] x [ 1…

Q: In its first 3 years of operations, Batul Company had taxable income of $90,000 in the first year, a…

A: Given the following information: Current year income: $600,000 Tax rate for current year: 28%

Q: Cardinal Corporation reported pretax book income of $3.300.000. During the curent year reserve for…

A: corporation is a suffix used for companies. Hence, the tax rate applicable to companies will be…

Q: KT Corporation reported pretax book income of $200,000,000. Tax depreciation exceeded book…

A: Book income is used by an organization to report their earnings to the shareholders and the users of…

Q: 10. Faye Faye Corporation's statement of financial performance for the year ended December 31, 20X2,…

A: The expenses or income reported in the accounting records of a business is generally different…

Q: At the end of the year, Huskies Together Company has pretax financial income of $550,000. Included…

A: For computing Income tax payable, Taxable Income will be calculated. Income tax payable = Taxable…

Q: Valenciano Manufacturing Corporation reports taxable income of P 829,000 on its income tax return…

A: For computation of pretax accounting income The taxable income shall include excess depreciation and…

Q: How much free cash flow did the firm generate during the current year? Round your answer to the…

A: Information Provided: Tax rate = 35% Previous operating capital = $2100 Current operating capital =…

Q: Pumpkin Company recorded Income tax payable equal to $10M, increased the Deferred Tax Asset by $2M,…

A: Net income: It refers to the income earned by the business after deducting all the expenses incurred…

Q: Lee Min Jae Company reported net income of P7,410,000 for the current year. The following items are…

A: GIVEN     Lee Min Jae Company reported net income of P7,410,000 for the current year. The following…

Q: DER Company has the following in the current year: Capital gains of $8,500 Capital losses of $18,500…

A: Solution:- the following will be included in Net Income for Tax Purposes for DER Company:-…

Q: n its first year of operations corporation Lauzer has the following results for the year: Gross…

A: The answer is stated below:

Q: The 2020 financial statements for Leggett & Platt, Inc. report the following information: Year ended…

A: Computation of depreciation adjustments due to change in useful life of assets Total Cost of…

Q: The annual revenue, expenses, and depreciation for a company are $130,000; 32,000; and $15,000,…

A: Annual Revenue = 130,000 Expenses = 32,000 Depreciation = 15,000

Q: e following information relates to Fremont Inc. for its first year of operations (data in millions…

A: A tax expense is the amount an individual or commercial entity owes in taxes to the government. The…

Q: The following information relates to Sustagoon Ltd. Profit before tax for the year ended 30 June…

A: Income Statement: Profit and loss statements are financial statements that reflect the revenue and…

Q: P 800,000 40,000 Equipment (net) Estimated warranty liability JCCI estimates that the warranty…

A: Tax is imposed as percentage of taxable income. Here tax rate 30% Taxable income =800000

Q: A company generates $500,000 of gross income during its tax year and incurs operating expenses of…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: Branch Corp.'s total assets at the end of last year were $310,000 and its net income after taxes was…

A: The ratio analysis is performed to compare the different elements of the business. The return on…

Q: You just completed your first year in business on 31 December 2021. Operating revenues were…

A: The multi-step income statement is a type of income statement that shows different categories of…

Q: An entity reported the following information during the first year of operations: Pretax financial…

A: The income tax expense is computed based on financial income. The difference between the actual…

Q: Corporat nre

A: The effective tax is hypothetical tax rate = 21% Which is to be adjusted for permanent differences

Q: The annual revenue, expenses, and depreciation for a company are $130,000; 32,000; and $11,000,…

A: Given: Annual revenue =$130,000 Expenses = $32,000 Depreciation = $11,000 Tax rate = 23%

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.