If Papa and Bambina file separate income tax returns, what deferred income tax is created?
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Papa Corporation owns 85% of Bambina Company. Papa sold Bambina goods for $180,000 over the last year. The goods cost Papa $120,000. The tax rate is 40%, and by the end of the year 1/3 of the goods are still in Bambina inventory. If Papa and Bambina file separate income tax returns, what
Answer:
$8,000
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- Delta Cron, the president of the VARIANT COMPANY, receives 15% of the net income (after deducting taxes but before bonuses) as a bonus arrangement with the company. For the current year, the net income after deducting the provision for income taxes and bonus is P5,000,000 The bonus is not deductible for tax purposes, and the tax rate is 20% Compute the appropriate provision for income tax for the year.Gopher Corporation began the year with a large amount of accumulated earnings and profits and ended the year reporting taxable income of $100,000. Gopher wants to distribute its after-tax earnings to its sole shareholder, Sven Anderson. The dividend would meet the requirements to be a qualified dividend, and Sven is subject to a tax rate of 15 percent on dividend income. What is the amount of the dividend distribution and how much income does Sven realize after taxes? Answer is not complete. Corporate income Corporate tax Dividend distribution to Seven Shareholder tax Total after tax income $100,000 $105,000 x $ 15,000Mr. Lion, who is in the 37 percent tax bracket, is the sole shareholder of Toto Incorporated, which manufactures greeting cards. Toto’s average annual net profit (before deduction of Mr. Lion’s salary) is $200,000. For each of the following cases, compute the income tax burden on this profit. (Ignore any payroll tax consequences.) Mr. Lion’s salary is $100,000, and Toto pays no dividends. Mr. Lion’s salary is $100,000, and Toto distributes its after-tax income as a dividend. My solutions: 1. $58,000, 2. $87,230 This was a homework problem that I missed. Could you please explain how to do it correctly?
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