GIVEN: • Taxpayer is a non-stock and non-profit educational institution. • It has been granted with a Certificate of Tax Exemption • Financial data this taxable period (2021): Related Unrelated Activities P5,000,000 1,000,000 4,000,000 Activities Gross Income Expenses P35,000,000 10,000,000 25,000,000 Net COMPUTE: Taxable income

GIVEN: • Taxpayer is a non-stock and non-profit educational institution. • It has been granted with a Certificate of Tax Exemption • Financial data this taxable period (2021): Related Unrelated Activities P5,000,000 1,000,000 4,000,000 Activities Gross Income Expenses P35,000,000 10,000,000 25,000,000 Net COMPUTE: Taxable income

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The cash flows associated with a project can be represented by the following decision tree (conditional probabilities are in parentheses): Year 0 Year 1 -$800 $400 (4) $212 56 $500 (6) Year 2 $300 (5) $500 (5) $400 (5) $600 (15) Year 3 $200 (5) $400 (5) $400 (5) $600 (.5) $300 (5) $500 (5) $500 (5) $700 (5) Given this data, determine the expected NPV for this project if the appropriate cost of capital is 12.36 percent.
Five mutually exclusive projects had the following data: V W X Y Z NPV $(3,000) $56,000 $23,000 $14,000 $28,000 IRR 7% 10% 15% 13% 6% Which project is preferred?
Nn. 115.
D Open recovered wor x✓ fx 0 A B C D E F OMEGA PROJECT CASH FLOW INFORMATION Year Inflow Outflow = Newflow 0 1 2 3 G -$225,000 -$190,000 $150,000 $190,000 $215,000 $175,000 $197,000 $70,000 $582,000 $225,000 0 $190,000 $150,000 0 $220,000 $30,000 4 $215,000 0 5 $205,000 $30,000 6 $197,000 0 7 $100,000 $30,000 Total $1,087,000 $505,000 Required ROI 18% Project Omega NPV (Year 0) Project Omega Total NPV Which of the two projects would you fund and why? ▶ 3T Company Data + Ready have on project selection? (Reference Section 2.4, pg 38-39) 19 MAY 910 30 H NPV I K L M N O ALPHA PROJECT CASH FLOW INFORMATION Year Inflow Outflow = 0 1 $50,000 2 $150,000 3 $250,000 4 $250,000 5 $200,000 6 $180,000 7 $120,000 Total $ 1,200,000 Required ROI Project Alpha NPV (Year 1). Project Alpha NPV 1 tv $300,000 $100,000 0 $50,000 0 $50,000 0 $30,000 $530,000 18% d P Newflow -$300,005 -$50,000 $150,000 $200,000 $250,000 $150,000 $180,000 $90,000 $670,000 A Q NPV
devrat
Sh56
Question 2 The following information relates to three possible capital expenditure projects. Because of capital rationing, only one project can be accepted: Project Q P R Initial cost £250,000 £210,000 £190,000 4 5 £17,500 £12,000 £ £ End of year 175,000 90,000 60,000 70,000 70,000 65,000 3 65,000 55,000 70,000 4 60,000 80,000 75,000 5 55,000 80000 The company estimates its cost of capital is 14 per cent. Required: Calculate a) The payback period for each project. b) The accounting rate of return for each project. c) The net present value of each proiect. d) Which project should be accepted - give reasons. e) Explain the factors management would need to consider, in addition to the financial factors, before making a final decision on a project. Expected life (years) 5 Scrap value expected £20,000 Expected cash inflows £ 2
pm.3
Information for Hobson Corporation for the current year ($ in millions): Income from continuing operations before tax Loss on discontinued operation (pretax) Temporary differences (all related to operating income): Accrued warranty expense in excess of expense included in operating income Depreciation deducted on tax return in excess of depreciation expense Permanent differences (all related to operating income): Nondeductible portion of entertainment expense The applicable enacted tax rate for all periods is 25%. What should Hobson report as income from continuing operations? $ 230 10 85 175 20