What is the taxable income on these general accounting question? Major Retail Store had $2,100,000 in sales revenue, with a cost of goods sold(COGS) of $800,000. Additionally, the store received $5,000 in corporate bondinterest and $7,000 in interest on Texas State bonds. It paid $600,000 insalaries and incurred $700,000 in other operating expenses.Required:Calculate Major Retail Store's taxable income.

Step 1: Texas State bond interestThe Texas State bond interest is tax-exempt because interest income…

Answered: Major Retail Store had $2,100,000 in…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter15: Choice Of Business Entity—other Considerations

Section: Chapter Questions

Problem 72P

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Acme Pest Control has sales of $13,500, cost of goods sold of $4,000, selling expenses of $3,500, depreciation of $2,000, interest expense of $2,000, and a tax rate of 34%. What is Acme's taxable income and tax expense?
Subject is Account.
The Walstore Shoe Market had $1871000 of shoe sales and its cost for these shoes was $685000. In addition, Shoe Market received $4000 of corporate bond interest and $6100 interest on State of California bonds. It paid $511200 in salaries and had $551800 of other operating expenses. What is Shoe Market's taxable income?
Crane Inc. (CI) has a short-term working capital loan to help finance its working capital. The terms of the loan enable CI to borrow an amount of up to 35% of its inventory balance and 55% of its accounts receivable. One of the loan covenants requires that CI maintain a current ratio greater than 2. Information related to CI's current assets and current liabilities is shown in the following table: In thousands Cash Accounts receivable Inventory Other current assets, Accounts payable Short-term bank loan Other current liabilities (a) Current ratio 2024 CI $161 2,054 1,342 338 1.402 562 56 2023 $224 1,230 2,306 395 1.343 Does CI satisfy the loan covenant in both years? (Round answers to 2 decimal places, eg. 18.45) 278 112 2024 times the loan covenant in 2024 the loan covenant in 2023 2023 times
A hospitality corporation is preparing its annual reports. The accounting records show sales of $250,000, and expenses, excluding depreciation, at $175,000. The company elects to use different depreciation methods for financial and tax reporting purposes. Depreciation for accounting purposes is $40,000, and for tax purposes the depreciation expense is $65,000. Compute the income before income taxes on the financial statements and the taxable income on the income tax return.
I want to correct answer general accounting question
Yang Company sold merchandise for $10,000 cash. The event is subject to a state sales tax of 9%. Recognizing the sale will require Yang to Multiple Choice increase revenue. All of the answers are correct. increase liabilities. increase assets.
FruAgro Company has average annual gross receipts of $52 million annually. This year, FruAgro earned $3 million of business interest income, incurred $8 million of business interest expense and has adjusted taxable income of $13 million. Required: Compute FruAgro's current deduction for business interest and the amount of any business interest carryforward. Note: Enter your answers in dollars not in millions of dollars. Business interest deduction Business interest carryforward Amount
Oakdale Fashions, Inc.’s, 2021 income statement is reported below. (Use corporate tax rate of 21 percent for your calculations.) Oakdale Fashions, Inc., Income Statement for 2021 Net sales (all credit) $ 595,000 Less: Cost of goods sold 227,000 Gross profits $ 368,000 Less: Other operating expenses 102,000 EBITDA $ 266,000 Less: Depreciation and amortization 16,200 EBIT $ 249,800 Less: Interest 83,000 EBT $ 166,800 Less: Taxes Net income $ Determine the firm's 2021 tax liability. Determine the firm's 2021 net income. Determine the firm's 2021 average tax rate. (Round your answer to 2 decimal places.) Determine the firm's 2021 marginal tax rate.
The Melrose Company uses the accrual basis to account for all sales transactions. Total sales for the current year amounted to $400,000. Of this amount, $100,000 is from sales on installment. The firm uses the installment method (i.e., cash basis) to account for the installment sale for tax purposes. Operating expenses are $220,000 for both GAAP and tax reporting. a. What is the book basis of the installment sales receivable? b. What is the tax basis of the installment sales receivable? C. Assuming a 40% tax rate, compute income tax payable, the deferred tax provision, and income tax expense for the current year. a. What is the book basis of the installment sales receivable? b. What is the tax basis of the installment sales receivable? c. Assuming a 40% tax rate, compute income tax payable, the deferred tax provision, and income tax expense for the current year. Start by determining the book and tax basis of the installment sales receivable. Then calculate the deferred tax provision.…
Gil Corporation has current assets of $90,000 and current liabilities of $180,000. Required: Compute the effect of each of the following independent transactions on Gil's current ratio: 1. Refinancing a $30,000 long-term mortgage with a short-term note. 2. Purchasing $50,000 of merchandise inventory with short-term accounts payable. 3. Paying $20,000 of short-term accounts payable. 4. Collecting $10,000 of short-term accounts receivable.
In the quarter ended 31 March 20X2, C had sales taxable outputs, net of sales tax, of $90,000 and taxable inputs, net of sales tax, of $72,000. If the rate of sales tax is 10%, how much sales tax is due? A $1,800 receivable B $2,000 receivable C $1,800 payable D $2,000 payable

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