If plant assets of a manufacturing company are sold at a gain of $1760000 with related income taxes of $550000, and the gain is not considered unusual, the income statement for the period would disclose these effects as O a prior period adjustment, net of applicable taxes, $1210000. O operating income, net of applicable taxes, $1210000. O again of $1760000 and an increase in income tax expense of $550000. O a gain from discontinued operations, net of applicable taxes, $1210000.

If plant assets of a manufacturing company are sold at a gain of $1760000 with related income taxes of $550000, and the gain is not considered unusual, the income statement for the period would disclose these effects as O a prior period adjustment, net of applicable taxes, $1210000. O operating income, net of applicable taxes, $1210000. O again of $1760000 and an increase in income tax expense of $550000. O a gain from discontinued operations, net of applicable taxes, $1210000.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter14: Taxes On The Financial Statements

Section: Chapter Questions

Problem 50P

See similar textbooks

Similar questions

During the current year an entity sold a piece of equipment used in production. The equipment had been accounted for using the revaluation method and details of the accounts and sale are presented below: Sales price P100,000 Equipment carrying amount (net) 90,000 Revaluation surplus 20,000 Which of the following is correct regarding recording the sale? O The gain that should be recorded in profit and loss is P30,000 O The gain that should be recorded in other comprehensive income is P10,000 O The gain that should be recorded in other comprehensive income is P30,000 O The gain that should be recorded in profit and loss is P10,000; the P20,000 revaluation surplus may be transferred to retained earnings.
Report the above information in the form of the following statements for external use: I) Statement of Profit or Loss for the year ended 31 December 2020.
The following is governed by an income tax rate of 25% . Depreciation rate is determined using MACRS A company is considering two alternatives Choice 1 : Amachine is purchased for 60,000. It is a 5 year property class. It will be used for 10 years after which it will have a salvage value of 15,000. It is mostly grey with a metallic steel cover. The Before Tax Cash Flow will be 80,000 per year. The machine is purchased from Retained Earning cash outright. It has no extra deductions associated with it. Choice 2: A machine is purchased for 65,000. It is a 10 year property class object. It will be used for 12 years with a salvage value of 18,000. It is mostly blue with a white cover. The Before Tax Cash Flow will be 86,000 per year. The machine is purchased from Retained Earnings Cash Outright. It receives an additional allowance for environmental effects of 5000/yr. The allowance is not taxed. and is not included in the 86,000 BTCF.
1. Pine Corp.'s books showed pretax income of P800,000 for the PROBLEM 6: MULTIPLE CHOICE - COMPUTATIONAL 1. Pine Corp.'s books showed pretax income of P800,000 for the year ended December 31, 20x1. In the computation of federal income taxes, the, following data were considered: Gain on an involuntary conversion (expropriation) Depreciation deducted for tax purposes in excess of depreciation deducted for book Estimated tax payments during 20x1 Le in 350,000 in purposes 50,000 70,000 Income tax rate 30% What amount should Pine report as its current income tax liability on its December 31, 20x1, balance sheet? a. 50,000 b. 65,000 с. 120,000 d. 135,000 (AICPA)
What is the amount of net income after tax that Vignette Company should report for the year 2021? Vignette Construction Company changed from completed contract method to the percentage of completion method of accounting for long-term construction contracts during 2021. For tax purposes, the company employs the completed contract method and will continue this approach in the future. The appropriate information related to this change is as follows: Pre-tax Income from Percentage of Completion 2020 2,028,000 1,820,000 Completed Contract 1,534,000 1,248,000 2021 Income tax rate is 35%. What is the amount of net income after tax that Vignette Company should report for the year 2021? Your answer
1. Pine Corporation’s books showed pretax income of P600,000 for the year ended December 31, 20x1. In the computation of federal income taxes, the following data were considered: Gain on involuntary conversion (expropriation) P350,000 Depreciation deducted for tax purposes in excess of depreciation deducted for book purposes 50,000 Estimated tax payments during 20x1 70,000 Income tax rate 30% What amount should Pine report as its current income tax liability on its December 31, 20x1, balance sheet?
The 2018 balance sheets and income statement for Netflix Inc. follow. Refer to these financial statements to answer the requirements. NETFLIX INC. Consolidated Statements of Earnings For Year Ended December 31, $ thousands Revenues 2018 $15,953,439 Cost of revenues 9,967,538 Marketing 2,528,567 Technology and development 1,221,814 General and administrative 789,392 Operating income 1,446,128 Other income (expense) Interest expense (420,493) Interest and other income 200,823 Income before income taxes 1,226,458 Provision for income taxes 15,216 Net income $1,211,242 NETFLIX INC. Consolidated Balance Sheets in thousands, except par value Current assets Cash and cash equivalents 2018 2017 $3,953,581 $2,822,795 Current content assets, net Other current assets Total current assets Noncurrent content assets, net Property and equipment, net Other noncurrent assets Total assets Current liabilities Current content liabilities Accounts payable 5,151,186 4,470,032 907,564 10,012,331 536,245…
A company reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Year Pretax Income (Loss) Tax Rate 2018 $138,000 18% 2019 81,000 18 2020 (258,700) 21 2021 303,200 21 Assuming that the company can carryforward its 2020 net operating loss, what is the amount of deferred tax asset the company would report at the end of 2020 related to this loss carryforward?
Domestic
The 2020 financial statements for Leggett & Platt, Inc. report the following information: Year ended December 31, 2020 (In millions) Depreciation expense $84.6 Net income 275.6 Equipment 620.3 Building 1071.7 Land 37.7 Accumulated depreciation and 1.165.4 amortization 564.3 PPE, net
Integrity Company reported pre-tax financial income of P400,000 for 2022. In the computation of income taxes, the following data were gathered: Non-taxable gain - P175,000 Depreciation deducted for tax purposes in excess of depreciation deducted for book purposes - P25,000 Tax payment made during 2022 - P27,500 Enacted tax rate - 35% What amount shall be reported as current tax liability?
independent problems: 1. ABC Company reported in its 2019 current tax expense at P 5,530,000. The following changes in ABC asset's and liabilities are as follows: Deferred tax asset 12/31/2019-200,000 12/31/2018-500,000 Deferred tax liability 12/31/2019-420,000 12/31/2018-600,000 Income tax payable 12/31/2019-850,000 12/31/2018-200,000 The deferred tax liability was caused by accelerated depreciation and the deferred tax asset is for rentals received in advance. How much is ABC's total income tax expense? 2. ABC Inc. began operations on July 1,2019. The company recognizes income from long term construction contracts under the percentage of completion method in its financial statements and under the cost recovery method for income tax purposes. Income under each are as follows: 2019 Cost recovery- P 0 % of completion- P 700,000 2020 Cost recovery- P 800,000 % of completion- P 1,280,000 2021 Cost recovery- P 1,350,000 % of completion- P 1,700,000 The income tax rate was 32% for…