In 2021, due to a change in marketing forecasts, Barney Corporation reduced the projected life of its patent for producing round dice. The cumulative patent amortization prior to 2021 would have been $10 million higher had the new life been used. Barney's tax rate is 25%. Barney's retained earnings as of December 31, 2021, would be:

Q: Pinnacle West operates in an industry for which NOL carryback is not allowed, and had the following…

A: Solution:- Calculation of the  Pinnacle West's income tax expense in 2021 as follows under:-

Q: United Airline recorded a record $15 billion loss due to the pandemic and dramatic decline in air…

A: Per TCJA, NOL 's for tax years may be carryforward indefinitely but may be deducted only upto 80% of…

Q: On June 30, 2021, Casio Sony Company sold a property carried in inventory at a cost of P1,894,200…

A:

Q: Assess the Federal net operating loss rules. Scenario: The Smith Company, a C Corporation, in 2021…

A: The Federal income taxes are require to be paid on the income earned during the taxable financial…

Q: On April 1, 2020, Desert Company decided to dispose of their Scorpion Division. Desert sold Scorpion…

A: Net income is a after tax income. In the given question, there are incomes from continuing and…

Q: In 2024, due to a change in marketing forecasts, Barney Corporation reduced the projected life of…

A: The retained earnings are the accumulated profits of the entity. It represents the profits which are…

Q: Husky Co. reports operating income of $60,000 in 2019. It also realized a loss of $20,000 due to…

A: Net income is presented in the income statement that is calculated by deducting the expenses from…

Q: 9. Chicken Wings Company's profit before tax for the six months to September 30, 2021, was…

A: As per IAS 34 Interim Financial Reporting, while calculating income tax expenditure, tax rate should…

Q: Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018…

A: Calculation of Percentage Change in Sales Given ,    2019 2018 Sales 810000 792000 The Sales…

Q: Ma In 2022, due to a change in marketing forecasts, A Corp. reduced the projected life of its patent…

A: Step 1:  Step 2: Step 3: Step 4:

Q: Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018…

A: Gross Profit = Sales - Cost of Sales

Q: Wittco Company reports pretax GAAP income in 2020, its first year of operations, of $180,000.…

A: The deferred tax is a future tax liability or asset, This tax is two types of deferred tax liability…

Q: Yaya Inc. has earnings before interest and taxes of P4,750,000. The company’s total depreciation and…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: On January 1, 2021, Company Ltd. decided to sell one of its processing plants located in New York.…

A: The income statement is prepared by the business organization so as to know how much amount of Gross…

Q: Today is December 31, 2018. The following information applies to Addison Airlines: ·      After-tax,…

A: Expected After tax operating income = 400,000,000 Expected Depreciation = 80,000,00 Expected Capital…

Q: Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018…

A: Sales: Sales include a number of goods and services sold by the organization during their accounting…

Q: In 2020, Uniontown Books had EBIT equal to -$950,000. In 2021, its EBIT was $2,200,000. The company…

A: The objective of the question is to calculate the tax liability of Uniontown Books for the year…

Q: The change in gross profit due to change in cost price must be

A:

Q: The gearing of a JK plc has reduced from 45% in 2020 to 37% in 2021. Answer TRUE or FALSE to…

A: The concept of gearing refers to the use of debt in the overall capital structure. It is also known…

Q: CSA Corporation suffered the following net operating losses for the last 5 years: 2017  P100,000…

A: Loss from operations arises when the business activities do not provide any fruitful results to the…

Q: The following information is taken from Pork Humba Company's 2020 profit and loss: Profit before…

A: Temporary difference (lesser amount of depreciation on tax return) = Deferred assets / tax rate =…

Q: what is the sales amount needed in spite of 15% increase in variable cost of candy?

A: Calculate the total contribution margin required for 2020 as shown below: Contribution margin =…

Q: The following information is taken from Pork Humba Company’s 2020 profit and loss: Profit before…

A: Temporary difference (lesser amount of depreciation on tax return) = Deferred assets / tax rate =…

Q: Lawn.com is expected to have operating losses of $329,300 in its first year of business and $293,400…

A: Present value:Present value is popularly known in short as PV. It is a concept of accounting that…

Q: During 2021, Thurs Company offered a P30 cash rebate coupon to customers who purchased one of its…

A: Thurs Company offered a P30 cash rebate coupon to customers who purchased one of its new lines of…

Q: Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018…

A: Gross profit is the profit earned by an organization before its direct expenses (admin and selling…

Q: Rockford Plc prepares financial statements to 31 December each year. On 1 January 2020 Rockford plc…

A: According to the given question, we need to compute the deferred tax liability for the years 2020…

Q: full year effective tax rate will be 15%. Based on a first quarter 2020 income before tax of $200,

A: It is given the amount of before tax is $200,000 and the tax rate is 15%.

Q: Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018…

A: Calculation of Sales Value if There would be no reduction in sales price.    Sales (2018) = P792000…

Q: Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018…

A: 2018   2019   sales 792,000 sales 810,000 COS 464,000 COS 480,000 gross profit 328,000 gross…

Q: What is the corporate income tax liability at December 31, 2020?

A: Calculation of corporate income tax liability at December 31, 2020: Profit before the deduction of…

Q: In 2020, Compton Ltd (Compton) incurred a loss of $1,260,000 for tax purposes, when the tax rate was…

A: For accounting periods starting on or after January 1, 2005, HKAS 12 applies. Income taxes are…

Q: At the end of 2021, Schrutte Inc. in its first year of operations, had pretax financial income of…

A: Taxable income = Pretax financial income + Estimated expenses deducted but not yet paid - Extra…

Q: Suppose SAMI company had an additional $4 million depreciation expense in 2023 I SAMI's tax rate on…

A: Net income is the amount which is earned by the investor from the business. It excludes the expenses…

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.