What is JIGS Enterprises taxable income for this year? JIGS Enterprises is finishing its fourth year inbusiness with a gross income of $620,000and total deductions of $315,000. In thesecond year, the company had a net loss of$105,000, and in the third year, it had a netloss of $85,000.What is JIGS Enterprises' taxable income forthis year, assuming Net Operating Losses(NOLs) are carried forward?

Explanation of Gross Income: Gross income represents the total amount of revenue a business…

Answered: JIGS Enterprises is finishing its…

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter2: Financial Statements, Cash Flow,and Taxes

Section: Chapter Questions

Problem 19P: The Bookbinder Company had 500,000 cumulative operating losses prior to the beginning of last year....

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Similar questions

Westwind Corporation reports the following results for the current year: Gross profit on sales $250,000 Long-term capital gain 25,000 Long-term capital loss 10,000 Short-term capital gain 7,500 Short-term capital loss 12,500 Operating expenses 80,000 What are Westwind's taxable income and regular tax liability before credits for the current year?
ZYX Inc has average gross receipts of $40 million per year over the last several years. In the current year, ZYX has $2,000,000 of taxable income before considering interest.ZYX has $150,000 of business interest income, S1, 200,000 of interest expense, and no floor plan financing. How much interest expense can ZYX deduct?
During the current year, Stern Company had pretax accounting income of $45 million. Stern's only temporary difference for the year was rent received in advance, which corresponds to the rent for the following year in the amount of $15 million. Stern's taxable income for the year would be: A) $30 million. B) $60 million. C) $50 million. D) $45 million. O A O O O
Armitage Inc. has earned gross receipts of about $10 million for the past 3 years. This year it earns gross receipts of $10,600,000. Armitage has $5,000 of business interest income, $400,000 of adjusted taxable income and $200,000 of business interest expense. How much business interest expense can Armitage deduct? Assume the same facts except that Armitage’s gross receipts for the past 3 years have averaged about $30 million. How much business interest can Armitage deduct?
Before considering a net operating loss carryforward of $75 million, Fama Corporation reported $110 million of pretax accounting and taxable income in the current year. The income tax rate for all previous years was 35%. On January 1 of the current year, a new tax law was enacted, reducing the rate to 25% effective immediately. Fama's income tax payable for the current year would be: Note: Round your answer to the nearest whole million. $65 million. $19 million. $12 million. $9 million.
Sweet Inc. incurred a net operating loss of $489,000 in 2020. The tax rate for all years is 20%. Prepare the journal entries to record the benefits of the loss carryforward. Sweet expects to return to profitability in 2021.
National Company's net income last year was P65,000 and its interest expense was P15,000. Total assets at the beginning of the year were P630,000 and total assets at the end of the year were P650,000. The company's income tax rate was 25%. The company's return on total assets (based on adjusted net income) for the year was closest to?
Lawn.com is expected to have operating losses of $329,300 in its first year of business and $293,400 in its second year. However, the company expects to have income before taxes of $374,400 in its third year and $589,300 in its fourth year. The company's required rate of return is 10 percent. Assume a tax rate of 35 percent and that current losses can be used to offset taxable income in future years. Click here to view factor tables What is the present value of tax savings related to the operating losses in years 1 and 2? (Round present value factor calculations to 4 decimal places, e.g. 1.2151 and final answer to O decimal places, e.g. 125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Present value $ +A 189641
During the current year, Newtech Corporation sold a segment of its business at a loss of $225,000. Until it was sold, the segment had a current period operating loss of $200,000. The company had $750,000 from continuing operations for the current year. Prepare the lower part of the income statement, beginning with the $750,000 income from continuing operations. Follow tax allocation procedures, assuming that all changes in income are subject to a 40% income tax rate. Disregard earnings per share disclosures. Newtech Corporation Partial Income Statement Income from continuing operations Discontinued operations Current Year Loss from operations of discontinued segment (net of tax) $ 200,000 Loss on disposal of discontinued segment (net of tax) Net income $ 750,000 0 0 $ 0
Rock Island Corporation generated taxable income (before deductions for depreciation, interest expense, and net operating loss carryovers) of $1 million this year. Taxable income was computed on $50 million of revenues and included $50,000 of interest income. The company paid $450,000 in interest expense. What is Rock Island's maximum business interest deduction for the year?
Whipporwill, Incorporated's, net income for the most recent year was $9,551. The tax rate was 23 percent. The firm paid $4,695 in total interest expense and deducted $5,162 in depreciation expense. a. What was the company's taxable income for the year? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What was the company's EBIT for the year? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. What was the company's cash coverage ratio for the year? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
(Working with the income statement) At the end of its third year of operations, the Sandifer Manufacturing Co. had $4,522,000 in revenues, $3,362,000 in cost of goods sold, $458,000 in operating expenses which included depreciation expense of $140,000, and a tax liability equal to 34 percent of the firm's taxable income. Sandifer Manufacturing Co. plans to reinvest $52,000 of its earnings back into the firm. What does this plan leave for the payment of a cash dividend to Sandifer's stockholders? Complete the income statement for Sandifer Manufacturing Co.: (Round to the nearest dollar.) Revenues = Less: Cost of Goods Sold = Less: Operating Expenses Less: Interest Expense Less: Income Taxes = = $ $ $ $ Equals: Gross Profit = ... Equals: Net Operating Income = 0 Equals: Earnings before Taxes Equals: Net Income = = $ GA GA $

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