Question.Sales $500,000irning HubOperating Expenses (200,000)Interest Income $25,000Gray Corporation has the following activity for year ending December 31, 2021:Interest Expense (150,000)Depreciation (35,000)Gray's avergae annual receipts is $27 MillionWhat is Gray's taxable income?$192,500$175,000$115,000$140,000ssignmentSe... @REA AP-Study Cen...Welcome to the Al...S

It has been provided: Sales = $500,000 Operating expenses = ($200,000) Interest income = $25,000…

Gray Corporation has the following activity for year ending December 31, 2021: Sales $500,000 Operating Expenses (200,000) Interest Income $25,000 Interest Expense (150,000) Depreciation (35,000) Gray's avergae annual receipts is $27 Million What is Gray's taxable income? Welcome to the Al... $192,500 O$175,000 O $115,000 O$140,000

Gray Corporation has the following activity for year ending December 31, 2021: Sales $500,000 Operating Expenses (200,000) Interest Income $25,000 Interest Expense (150,000) Depreciation (35,000) Gray's avergae annual receipts is $27 Million What is Gray's taxable income? Welcome to the Al... $192,500 O$175,000 O $115,000 O$140,000

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

Arndt, Inc. reported the following for 2021 and 2022 ($ in millions): 2021 2022 Revenues $ 888 $ 980 Expenses Pretax accounting income (income statement) Taxable income (tax return) 760 800 $ 128 $ 116 $ 180 $ 200 Tax rate: 25% a. Expenses each year include $30 million from a two-year casualty insurance policy purchased in 2021 for $60 million. The cost is tax deductible in 2021. b. Expenses include $2 million insurance premiums each year for life insurance on key executives. c. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2021 and 2022 were $33 million and $35 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were $25 million ($10 million collected in 2020 but not recognized as revenue until 2021) and $33 million, respectively. Hint View this as two temporary differences-one reversing in 2021; one originating in 2021. d. 2021 expenses included a $14 million unrealized loss from reducing…
The annual revenue, expenses, and depreciation for a company are $130,000; 32,000; and $11,000, respectively. What is the after-tax cashflow if the effective income tax rate is 23%? a.77990 b.66990 c. 75460 d. 64460 e. 20010
XYZ Corp provided you with the following information
Flip's Pizzeria Inc. has the following financial items for the current year: Adjusted Taxable Income before Interest $43,400,000 Business Interest Income $550,000 Interest Expense $16,100,000 How much interest expense can Flip deduct in the current year? A В C D E 1 2 Interest Expense Deduction = 4 7 8 9. 10 3. 6.
4. The following information is for Z Corp's first year of operations. Amounts are in millions of dollars. The enacted tax rate is 25%. Accounting income Temporary differences: Rental Income Depreciation Expense Permanent Difference: Taxable income Year 2021 $80 6 -12 2 $76 Future Taxable Amounts 2022 2023 88 75 0 -4 $4 $3 2024 2025 63 58 Future Amount Total -1 -1 -6 $3 $2 $ 12 Required: Prepare the journal entries to record the income tax expense for each year. (show the computing process and precise journal entries)
ABC Company reported pretax financial income of P6,200,000 for the calendar year 2020. Included in the other income section of the income statement was P200,000 of interest revenue from government bonds held by the entity. The income statement also included depreciation expense of P500,000 for a machine that cost P3,000,000. The income tax return reported P600,000 as depreciation on the machine. The enacted tax rate is 30% for 2020 and future years. What is the current tax expense for 2020? (Round answer to whole number)
On January 1, 2021, Squirtle Company sold a piece of equipment to Charmander Company with a cost of P3,500,000 and accumulated depreciation of P500,000 in exchange for an annual 6% interest-bearing note, P3,600,000. Charmander company is required to make ten equal semi-annual payments of principal plus interest. Questions: 1. How much is the total amount that will reflect in the statement of comprehensive income for the year 2021 that is related to the above transaction? 2. What is the interest income for the year 2023? 3. How much is the total proceeds of Squirtle for the year 2024?
Greene Co. has pretax book income for the year ended December 31, 2022 in the amount of $315,000 and has a tax rate of 30%. Depreciation for tax purposes exceeded book depreciation by $10,500.What should Greene Co. record as its deferred tax liability for 2022? Group of answer choices $94,500 $0 $91,350 $3150
mg
The Stone Inn earned $167,284 in taxable income for the year. How much tax does the company owe on this income? TxableIncome 60.000 Tox Rale 18% 50.001- 75.000 75.001-100.000 100.001- 35.000 335.001- 10,000,000 a. $46,311.02 b. $48,490.76 c. $54,519.27 d. $65,240.76
i need the answer quickly
The profit before tax, as reported in the Statement of Profit or Loss and Other Comprehensive Income of Oliver Ltd for the year ended 30 June 2021, amounted to $40,000 including the following revenue and expense items. June 2021 $ Interest revenue 4,500 Bad debts expense 6,000 Depreciation expense - plant 7,000 Annual Leave Expense 2,500 Rent Expense 2,000 Fines and Penalties (non-deductible) 500 Government grant (exempt from tax) 9,000 Additional information: а. The deduction for depreciation for tax purposes was $8,000. b. Bad debts written off for the year were $5,500. С. Interest revenue is receivable in advance and is taxed when received. Total cash receipts for interests were $8,500 during the year. d. The annual leave provision was $3,000 the end of the year (the opening balance was $2,000). е. Rent payments of $3,000 were made during the year. f. The tax rate is 30%. Required Prepare the current tax worksheet and the journal entry to recognise current tax at 30 June 2021.