Maple Enterprises Ltd., a public corporation, has always claimed maximum CCA. The following information relates to the corporation's capital transactions: 1. The undepreciated capital cost of certain CCA classes at the end of the previous taxation year was as follows. Class 1 $220,000 (one building in class) Class 8 209,000 2. In 2023, the company expanded into the manufacturing business by purchasing the following assets. Equipment (manufacturing) Product licence for an indefinite period $33,000 11,000 3. The building was sold in 2023 for $286,000 (original cost-$253,000). 4. During 2023, the company purchased office furniture for $15,400. Required: Complete the table below using the given information. (If an item is not relevant, leave blank. Use a minus sign (-) when entering numbers that reduce UCC.) UCC, beginning of year Add Purchases Less Disposal Recapture Less CCA Ending UCC Business income: Recapture Less: CCA Net Increase (decrease) to business income Taxable Capital Gain (allowable capital loss) $ $ $ $ $ Class 1 Building 0 Class 8 Furniture 220,000 $ 209,000 $ $ (286,000) Class 14.1 Intangible License (2,640) (68,640) $ 209,000 $ Class 53 Manufacturing equipment 0 $ 11,000 $ 11,000 $ 0 33,000 33,000

Maple Enterprises Ltd., a public corporation, has always claimed maximum CCA. The following information relates to the corporation's capital transactions: 1. The undepreciated capital cost of certain CCA classes at the end of the previous taxation year was as follows. Class 1 $220,000 (one building in class) Class 8 209,000 2. In 2023, the company expanded into the manufacturing business by purchasing the following assets. Equipment (manufacturing) Product licence for an indefinite period $33,000 11,000 3. The building was sold in 2023 for $286,000 (original cost-$253,000). 4. During 2023, the company purchased office furniture for $15,400. Required: Complete the table below using the given information. (If an item is not relevant, leave blank. Use a minus sign (-) when entering numbers that reduce UCC.) UCC, beginning of year Add Purchases Less Disposal Recapture Less CCA Ending UCC Business income: Recapture Less: CCA Net Increase (decrease) to business income Taxable Capital Gain (allowable capital loss) $ $ $ $ $ Class 1 Building 0 Class 8 Furniture 220,000 $ 209,000 $ $ (286,000) Class 14.1 Intangible License (2,640) (68,640) $ 209,000 $ Class 53 Manufacturing equipment 0 $ 11,000 $ 11,000 $ 0 33,000 33,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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EB Corporation, a C corporation, has a net short-term capital gain Of $ 65k and a net long-term capital loss of $250k during 2023. EB Corporation had taxable income from other sources of $720k Prior years' transactions included the following: 2019 2020 2021 2022 NET LTCG: $150K NET STCG: 560K NET STCG: $45K NET LTCG: $35K Compute the treatment of EB's capital gain or loss if any
For the year ended December 31, 2024, Fidelity Engineering reported pretax accounting income of $988,000. Selected information for 2024 from Fidelity's records follows: Interest income on municipal governmental bonds $ 44,000 Depreciation claimed on the 2024 tax return in excess of depreciation on the income statement Carrying amount of depreciable assets in excess of their tax basis at year-end Warranty expense reported on the income statement 68,000 112,000 32,000 Actual warranty expenditures in 2024 22,000 Fidelity's income tax rate is 25%. At January 1, 2024, Fidelity's records indicated balances of zero and $11,000 in its deferred tax asset and deferred tax liability accounts, respectively. Required: Determine the amounts necessary to record income taxes for 2024, and prepare the appropriate journal entry. What is Fidelity's 2024 net income?
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Assume that ACW Corporation has 2022 taxable income of $1,500,000 for purposes of computing the $179 expense. The company acquired the following assets during 2022 (assume no bonus depreciation): Asset Placed in Service Basis Machinery September 12 $470,000 Computer equipment February 10 $ 70,000 Delivery truck August 21 $ 93,000 Qualified real property April 2 $ 1,380,000 (MACRS, 15 year, 150% DB) Total $2,013,000 Question: What is the maximum amount of §179 expense ACW may deduct for 2022? Answer: Question: What is the maximum total depreciation that ACW may deduct in 2022 on the assets it placed in service in 2022?
On January 2, 2030, Esko Corp. acquired all the net assets of Tolits Inc. Esko Corp. paid P6,000,000 for the net assets of Tolits Inc. On this date, the following accounts of Tolits, Inc. are as follows: Cash – P150,000; Accounts Receivable – P1,600,000; Inventories – P600,000; Property, plant, and equipment – P2,600,000; Accounts Payable – P1,400,000. On the date of acquisition, it was determined that the fair values of inventories and property, plant, and equipment were P660,000 and P3,400,000, respectively. Esko Corp. has estimated a restructuring provision of P500,000 representing costs of exiting the activity of Tolits Inc., cost of terminating the employees of Tolits Inc. Compute the goodwill or gain from acquisition. * a. P 2,950,000 b. P 1,590,000 c. P 2,090,000 d. P 2,450,000 pls. answer it asap thank you:)
On October 1, Kingbird Corporation donated a parcel of land which had a fair market value of 9,000. King had purchased the land 5-years ago for 6,500. During the current year, Kingbird Corporation had the following income and expense items: Required: Determine Kingbird’s charitable contribution deduction for the current year
AMP Corporation (calendar year-end) has 2022 taxable income of $1,900,000 for purposes of computing the $179 expense. During 2022, AMP acquired the following assets: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Asset Placed in Service Machinery September 12 Computer equipment Office building February 10 April 2 Basis $ 1,550,000 365,000 480,000 Total $ 2,395,000 b. What is the maximum total depreciation, including §179 expense, that AMP may deduct in 2022 on the assets it placed in service in 2022, assuming no bonus depreciation?
EMC began operations during 2004. Taxable income in 2005 was $829,000. Basis differences as of 12/31/04 and 12/31/05 are as follows: Description of difference 12/31/04 12/31/05 Property, Plant, & Equipment, net: GAAP basis $1,102,000 $1,880,000 Tax basis 1,000,000 1,800,000 Basis difference $102,000 $80,000 Investments – Trading GAAP basis (fair value) $785,000 $823,000 Tax basis (cost or amortized cost) 903,000 948,000 Basis difference…
J Co. (a Canadian-controlled private corporation) had a Class 8 UCC balance of $10,000 at the end of 2022. In 2023, J Co. purchased a Class 8 asset for $50,000 to be used by the business immediately. What is J Co.'s maximum CCA for 2023? Multiple Choice $12,000 $17,000 $60,000 $52,000
Q.6.
AMP Corporation (calendar-year-end) has 2023 taxable income of $1,800,000 for purposes of computing the §179 expense. During 2023, AMP acquired the following assets: Asset Placed in Service Basis Machinery (7-year) May 12 $ 700,000 Furniture (7-year) March 15 400,000 Computer equipment February 10 200,000 Office building April 2 1,100,000 Total $ 2,300,000 What is the maximum amount of §179 expense AMP may deduct for 2023? What is AMP's §179 carryforward to 2024, if any?