Grand Corporation reported pretax book income of $654,000. Tax depreciation exceeded book depreciation by $436,000. In addition the company received $327,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $54,500. Compute the company's current income tax expense or benefit. Note: Leave no answer blank. Enter N/A or zero. Current income tax Deferred income tax Answer is not complete. N/A expense 0

Grand Corporation reported pretax book income of $654,000. Tax depreciation exceeded book depreciation by $436,000. In addition the company received $327,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $54,500. Compute the company's current income tax expense or benefit. Note: Leave no answer blank. Enter N/A or zero. Current income tax Deferred income tax Answer is not complete. N/A expense 0

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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Se.125.
Insure Corporation reported a net operating loss of $25 million for financial reporting and tax purposes. Taxable income last year and the previous year, respectively, was $20 million and $15 million. The enacted tax rate each year is 25%. Assume that Insure qualifies as a type of company that is allowed to carry back an NOL to two prior taxable years, using the earliest year first. Prepare the journal entry to recognize the income tax benefit of the net operating loss.
. For the year ended December 31, 20x1, Mont Co's books showed income of P600,000 before provision for income tax expense. To compute taxable income for taxation purposes, the following items should be noted: Income from exempt municipal bonds Depreciation deducted for tax purposes in excess of depreciation recorded on the books Proceeds received from life insurance on death of officer Estimated tax payments 60,000 120,000 100,000 30% Enacted corporate tax rate What amount should Mont report at December 31, 20x1, as its income tax liability? a. 96,000 (AICPA) b. 114,000 c. 156,000 d. 162,000
Beaver Dam Inc. (BDI) listed the following items to prepare a reconciliation between book and taxable income. GAAP net income before tax $700,000 Meal and entertainment expense 100,000 GAAP depreciation expense 110,000 Depreciation expense for tax purposes 120,000 c. Compute the net increase in BDI’s deferred tax assets or deferred tax liabilities for the year. d. Prepare the journal entry to record taxes for the year.
Grand Corporation reported pretax book income of $612,000. Tax depreciation exceeded book depreciation by $408,000. In addition, the company received $306,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $51,000. Compute the company's current income tax expense or benefit. (Leave no answer blank. Enter N/A or zero.) 이 Current income tax Deferred income tax N/A expense $
1) Compute for the taxable income 2) Compute for the deferred tax asset. 3) Compute for the net income after tax (round off to the nearest whole number)
Tyson Corporation reported pretax income from operations in Year 1 of 92,000 (the first year of operations). In Year 2, the corporation experienced a $96,000 NOL (pretax loss from operations). Management is confident the company will have taxable income in excess of $120,000 in Year 3. Assume an income tax rate of 25% in Year 1 and thereafter. Tyson has no other temporary differences. Required a. Provide the Year 1 and Year 2 income tax entries that Tyson should make.
On December 31, Year 1, ABC Corp had a deferred tax asset of $56,470. On December 31, Year 2, the deferred tax asset is $87,520. The company's Year 2 current tax expense is $98,790. What amount should the company report as total Year 2 income tax expense? 1. $62,660 2. $64,353 3. $66,047 4. $67,740 5. $69.434
Caltex Products plc manufactures electric mini-lawnmowers. Its sales and costs’ budget for November 20X2 is as follows: Sales: 3 000 units × £72/unit Costs:Direct materials (metal): 3 000 units × (1kg per unit × £14/kg) Direct materials (plastic): 3 000 units × (0.5kg per unit × £7/kg) Direct labour: 3 000 units × (0.75 hours per unit × £8/hr) Production overhead: £86 500 Other overheads: £31 000 The company does not absorb production overheads using an overhead absorption rate. It may be assumed that all of its overheads are fixed in nature.The company’s actual results for the same month (November) are as follows: Sales: 2 950 units × £73/unit Costs:Direct materials (metal): 2 950 units × (0.9kg per unit × £13.80/kg) Direct materials (plastic): 2 950 units × (£0.5kg per unit × £7.20/unit) Direct labour: 2 950 units × (0.7 hrs per unit × £8.20/hr) Production overhead: £84 250 Other overheads: £32 250Net profit: £34 658 Required:Comment on your calculations (given down…
Grand Corporation reported pretax book income of $675,000. Tax depreciation exceeded book depreciation by $450,000. In addition, the company received $337,500 of tax-exempt municipal bond Interest. The company's prior-year tax return showed taxable income of $56,250. Compute the company's current income tax expense or benefit. (Leave no answer blank. Enter N/A or zero.) Answer is complete but not entirely correct. S Current income tax Deferred income tax N/A expenses 153,563 94,500
Chandler Corporation reported pre-tax book income of $1,900,000. Tax depreciation exceeded book depreciation by $600,000. During the year the Company capitalized $250,000 into ending inventory under §263A. Capitalized inventory costs of $150,000 in beginning inventory were deducted as part of cost of goods sold on the tax return. Assuming a tax rate of 21%, compute the company’s taxes payable or refundable.
Grand Corporation reported pretax book income of $621,000. Tax depreciation exceeded book depreciation by $414,000. In addition, the company received $310,500 of tax-exempt municipal bond interest. The company’s prior-year tax return showed taxable income of $51,750. Compute the company's current income tax expense or benefit. (Leave no answer blank. Enter N/A or zero.) Current income tax N/A $0 Deferred income tax Expense ?