Net income $70,000, tax rate 25%, and loss from discontinued operations net oftax $5,000. Compute the income before income tax.Your answerThis is a required questionDuring 2021, Kamal Co. incurred average accumulated expenditures of $400,000during construction of assets that qualified for capitalization of interest. Thecompany has two debts outstanding during 2021. the first is a $500,000, 10%, 5-year note payable dated January 1, 2019. the second is a specificconstruction debt of $300,000, 8%, 3-year note payable dated September 1,2020. 1- compute the amount of actual interest during 2021. 2- compute theamount of avoidable interest during 2021.Your answerThis is a required question

The income before income tax is computed to determine the tax liability. The income before income…

Answered: Net income $70,000, tax rate 25%, and…

Net income $70,000, tax rate 25%, and loss from discontinued operations net of tax $5,000. Compute the income before income tax. Your answer This is a required question

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: solve this one please

A: To calculate the cash paid for income taxes during the year, we need to adjust the income tax…

Q: calculate the total income tax that someone would owe if their annual income was $83,350

A: The total annual income tax is $83,350 The total tax is required to be computed on the tax table…

Q: Use the 2021 marginal tax rates

A: As per IRS 2021 standard deduction for single filer is $ 12,550. As per…

Q: i need answer step by step

A: Detailed explanation: To arrive at those answers, we comply with a sequence of steps to calculate…

Q: Income from continuing operations and retained earnings The accountant preparing the income…

A: The objective of the question is to determine the appropriate accounting treatment for the six items…

Q: percent tax rate. Given the following pre-tax amounts, what would be the income tax expense reported…

A: For ascertaining the income tax liability of any tax payer, the pre-tax amounts of the business…

Q: 2. Using the following Income Tax data, and given that your annual income is $ 85,000: a) Calculate…

A: ''Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Oakdale Fashions, Inc. had $245.000 in 2018 taxable income. Using the tax schedule in Table 2.3 to…

A: Income slab Tax amount Tax till $100,000 $22,250 $100,001 - $245,000 $145,000 x 39% = $56,550…

Q: How much is the income tax expense/(benefit) for the fourth quarter?

A: Income tax expense/(benefit) for the fourth quarter = (34,000)

Q: Using the following table, calculate the taxes for an individual with taxable income of $25,800.…

A: Tax is the amount of money paid by a tax payer to the appropriate tax authorities on the basis of…

Q: a. $950,000

A: To calculate the tax refundable for the company, we need to first calculate the total tax liability…

Q: Calculate net earnings. Gross pay $250.00 Fed Tax $17.88 Social Security Tax $10.71 Medicare tax…

A: Gross Pay = 250 Federal Tax = 17.88 Social Security Tax = 10.71 Medicare Tax = 3.25

Q: Suppose your annual income is $29182 and there are two tax brackets: 10% for $0-$20,000 and 30% for…

A: Tax amount is the amount of tax obligation that an entity has to pay on its income to the government…

Q: Simple Accounting - Property Tax. Market Value Tax Policy Rate Property Tax $1,370,980.00 50.75%…

A: Property Tax = Property Tax is the tax imposed on property by the authority.

Q: 2-3 Molteni Motors Inc. recently reported $6 million of net income. Its EBIT was $13 million, and…

A: It represents the cost that the firm will undertake for servicing debt. The nature of interest…

Q: If your taxable income is Over- But not Over- $0 $9,275 $9,275 $37,650 $37,650 $91,150 $91,150…

A: Solution:- Income tax is the amount of tax charged by government on the income earned.

Q: Required: Based on the information in the table below, prepare an income statement for Windswept…

A: Income Statement is a statement that shows the net profit earned by a company over a particular time…

Q: Compute for the tax due (A,B,C) for the below taxable income based on the Income Tax Tables:…

A: calculation of income tax due are as follows

Q: Assume the following: Revenue = $1,500; COGS = $450; SGA = $300; EBIT = $600; Taxable income = $525;…

A: Taxes are paid on the taxable income and are deducted from taxable income (i.e. earnings before…

Q: Using the information below, calculate the individual income tax liability. (Use the following…

A: Income tax is a type of tax that governments impose on individuals and entities based on their…

Q: You are considering purchasing a new piece of equipment (7yr MACRS property) for your manufacturing…

A: The modified accelerated cost recovery system (MACRS) is a depreciation system used for tax purposes…

Q: Mr. Borbon had the following data for his income tax return for the current year: Sales Personal…

A: The question is related to taxation. In case if the we optioned to taxed by 8% , the there will be…

Q: With the following data, compute the NET FUTA Tax. Gross FUTA Tax DUE $ 6,750 Credit against…

A: FUTA stands for Federal Unemployment Tax Act. This tax is imposed on employers whose employees leave…

Q: Use the table to the right to calculate the federal income tax due for a taxable income of $87,000…

A: Income tax is the amount of tax which is to be paid on the income earned by the taxpayer during the…

Q: Required information Problem 17-6AA (Algo) Income statement computations and format LO A2 (The…

A: Loss from operating a discontinued segment = $19850( pretax) Less:…

Q: Determine the amount of average income tax liability per tax return, for each income range provided,…

A: The income tax return is a document filed with the tax authority of a country stating the sources of…

Q: Complete the assets part of the pro forma balance sheet for next year: (Round to the nearest…

A: Particulars Amount ($) Sales Revenue 60,06,000 Less : Cost of goods sold 30,89,182 Gross…

Q: Use the following tax table to determine how much income tax is paid on 732000 of taxable income.…

A: The objective of this question is to calculate the total income tax paid on a taxable income of…

Q: The standard deduction for a single person is $12,200. Based on this table, if your total income is…

A: The question is based on the concept of Taxation Accounting.It is a charge required to be paid on…

Q: You have calculated the adjusted profit for the company to be $2,000,000. Capital Allowance was…

A: Here's the step-by-step calculation and why the other options are incorrect:Step 1: Calculate Tax…

Q: Following are the balances of Bank Muscat for the year ended as on 31st December 2020 (Amounts are…

A: Rebate on bills discounted for banks refers to the discount received but not earned. Such amount is…

Q: Oakdale Fashions, Inc. had $245.000 in 2018 taxable income. Using the tax schedule in Table 2.3 to…

A: Average tax rate = (Total Taxes / Total Taxable Income) * 100 Marginal Tax rate = Amount of…

Q: The total tax on an income of $256,600 is: Select one: a. $96,194 b. $113,900 c. $112,944 d.…

A: First 50,000 will taxed at 15%, Next 25,000 will taxed at 25%, Next 25,000 will be taxed at 34% and…

Q: 23. SINGLE TAX RATES SCHEDULE FOR 2022 TAX SEASON IS GIVEN AS FOLLOWS: if Taxable income is over $…

A: The single standard deduction for the tax year 2022 is $12,550. This means that if you are filing as…

Q: Using the Corporated Federal Income Tax Rate (2006), calculate the federal income tax that should be…

A: The following federal income tax rate (2006) table will be used:

Q: Priceton Salary income is $ 150000, STCG is $ 320000, Tax@20 % , Exemption from Income $ 170000…

A: Formula: Tax amount = Taxable income x Tax rate

Q: Taxable income Total Future deductible amounts Total Future taxable amounts Balance at beginning of…

A: Deferred tax is the concept which arises due to the difference between the taxable income and the…

Q: nad the follovwing data for his Inco year: Php 490, 000 150, 000 200, 000 120, 000 70, 000 320,000…

A: Particulars Amount (php) Sales 490,000 Less cost of sales (200,000) Less admin expenses…

Q: Consider gross earnings of $84,000. The standard deduction is $12,000 and itemized deduction is…

A: Taxable income is the income on which the tax rate is imposed. It is the income net off of the…

Q: You have the following data: The net income after tax is 42000 OMR and income tax is 3000 OMR.…

A: Net income means the profit earned from sale of goods or services after deducting all expenses…

Q: You have calculated the adjusted profit for the company to be $2,000,000. Capital allowance was…

A: Here's the breakdown of the tax calculation and why the correct answer is (b) $500,000:Taxable…

Q: 1. What is the tax due and payable amount in fiscal year 20x1? Fiscal year June 20, 20x1 (5th…

A: Tax is the amount that needs to be paid by the business and other taxpayers from their income…

Question

Net income $70,000, tax rate 25%, and loss from discontinued operations net of
tax $5,000. Compute the income before income tax.
Your answer
This is a required question
During 2021, Kamal Co. incurred average accumulated expenditures of $400,000
during construction of assets that qualified for capitalization of interest. The
company has two debts outstanding during 2021. the first is a $500,000, 10%, 5-
year note payable dated January 1, 2019. the second is a specific
construction debt of $300,000, 8%, 3-year note payable dated September 1,
2020. 1- compute the amount of actual interest during 2021. 2- compute the
amount of avoidable interest during 2021.
Your answer
This is a required question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Defining Income before Income Tax

VIEW

Step 2: Determining the Net Income before Income Tax

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Compute for the tax due in each of the following cases. Show your computation and highlight your final answer. Please answer items 1 to 5. Thank you!
With the following data, compute the NET FUTA Tax. Gross FUTA Tax DUE $6,750 Credit against FUTA (assume applicable) $3,100 O $3,650 O $7,000 O $3,100 O $6,750
Select the correct order of the line items listed below based on the sequence of their appearance on Form US 1040. Number the items from the lowest number (1) going to the first item to appear on the return and the last number going to the final item from the list to appear on the return. Question 5 options: Wages Taxes withheld and quarterly tax payments Non-refundable tax credit Student Loan Interest Deduction Standard Deduction Interest Income Refund or Taxes Due Computed income tax before non-refundable tax credits Taxable Income Adjusted Gross Income (AGI)
Compute the before-tax revenue if tax rate is 15% and after-tax revenue is 23,800
A) Calculate bi-weekly gross earnings 55 hours @ $13/hr. USE YOUR ANSWER IN 3A TO CALCULATE THE TAX FOR BC, AND D. B) Calculate Fed Tax (15 %) on gross earnings. C) Calculate Socail Security Tax (6.25%) on gross earnings. D) Calculate Medicare Tax (1.14%) on gross earnings. E) What is the total amount of deductions?
Show detailed solution
Accounting
Required Answer each of the following questions by providing supporting computations. 1. Assume that the company’s income tax rate is 30% for all items. Identify the tax effects and after-tax amounts of the three items labeled pretax. 2. Compute the amount of income from continuing operations before income taxes. What is the amount of the income tax expense? What is the amount of income from continuing operations? 3. What is the total amount of after-tax income (loss) associated with the discontinued segment? 4. What is the amount of net income for the year?
Using the tax rate schedule given here LOADING..., perform the following: a. Find the marginal tax rate for the following levels of sole proprietorship earnings before taxes: $ 15 000; $ 60 000; $ 90 000; $ 150 000; $ 250 000; $ 450 000; and $1 million. b. Plot the marginal tax rates (measured on the y-axis) against the pretax income levels (measured on the x-axis) $0 to $9,875 $0 (10% amount over $0) 9,876 to 40, 125 988 + (12% amount over 9, 876) 40, 126 to 85, 525 4,618 + (22% amount over 40, 126) 85,526 to 163, 300 14, 606 + (24% amount over 85, 526) 163, 301 to 207, 350 33, 272 + (32% amount over 163, 301) 207, 351 to 518, 400 47,368 (35% amount over 207, 351) 518,401 to Unlimited 156, 235 (37% amount over 518, 401)
1. Assuming the following facts, calculate the total tax provision Sales $100,000 Pre-tax book net income 75,000 Entertainment 5,000 Book depreciation 20,000 Tax depreciation 50,000 Tax rate 21%
Pertinent information for two alternatives A and B is shown below. If i=10%/year and the effective income tax rate is 35%, answer the following true/false questions. Alt. A 150,000 100,000 30,000 15,000 5 Basis, $ Gross Income (GI), $ Operating Expense (OE), $ Salvage Value, $ MARCS Recovery, Years The TI (taxable income) of Alt. B at the end of year 1 is $40,000. True False Alt.B 225,,000 100,000 10,000 22,500 5
You have calculated the adjusted profit for the company to be $2,000,000. Capital Allowance was $20,000. The tax rate is 25%.Estimated tax paid during the year is $750,000. Employment Tax Credit available (which is nonrefundable)is $700,000. The tax refundable for this company is.a. $950,000b. $500,000c. $250,000d. $200,000