Hello teacher provide answer Oakland corporation reported a net operating loss of$500,000 in 20x3 and decided to carry forward to 20x4. Notincluded in the computation was a disallowed meals andentertainment expense of $20,000 tax exempt income of$10,000 and deferred gain on installment sale of $250,000.The corporations current earning and profit for 20x3 wouldbe?A. ($500,000)B. ($720,000)C. ($510,000)D. ($260,000)

Step 1: Definition of Current Earnings and Profits (E&P)Current Earnings and Profits (E&P)…

Answered: Oakland corporation reported a net…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

3. War Eagle, Inc. reported the following for 20X3:a. taxable income of $2,000,000 b. paid federal income taxes of $420,000.c. a net operating loss carryover of $1 00,000 d. Section 179 expensed of $300,000 last yeare. Actual business interest expense for book was $2 0,000, but for tax, they could only deduct $15,000 because of the limitation on business interest expense.f. Increase in LIFO recapture of $12,000g. Tax Exempt Income of $1,000h. Operating expenses for tax were $1 00,000, which included $10,000 of MACRS depreciation for tax. Depreciation under the alternative ( E&P) depreciation method was $15,000. Compute the company's current E&P for 20X3.
Before considering a net operating loss carryforward of $80 million, Fama Corporation reported $200 million of pretax accounting and taxable income in the current year. The income tax rate for all previous years was 30%. 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: Multiple Choice О $28 million. О $48 million. О $30 million. О $36 million.
Godo
Lin Ltd. reported the following: Earnings (loss) Depreciation (assets have a cost of $360,000) CCA Non-deductible expenses Tax rate Taxable income Accounting earnings Permanent difference Accounting income subject to tax Temporary difference 1. What is the amount of the taxable income or loss in each year? (Negative amounts and deductible amounts should be indicated by a minus sign.) Taxable income 20X7 20x7 (first year of operations) $98,000 $45,000 $60,000 $18,000 20x8 30% 2008 $(166,000) $ 45,000 $ 70,000 $18,000 30%
Randolph Company reported pretax net income from continuing operations of $959,000 and taxable income of $590,000. The book–tax difference of $369,000 was due to a $205,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $88,000 due to an increase in the reserve for bad debts, and a $252,000 favorable permanent difference from the receipt of life insurance proceeds. b. Compute Randolph Company’s deferred income tax expense or benefit. c. Compute Randolph Company’s effective tax rate.
Dix Company reported operating income (loss) before income tax in its first three years of operations as follows: 20X1 20X2 20X3 $ 100,000 (200,000) 240,000 Dix had no permanent or temporary differences between book income and taxable income in these years. Assume a 21% tax rate for all years, and assume there is no valuation allowance. Required: 1. What amount of deferred tax asset should Dix report on its December 31, 20X2, balance sheet? 2. What amount should Dix report as a tax benefit on its 20X2 income statement? 3. What amount of taxes does Dix pay related to its 20X3 tax return? Amount 1. Deferred tax asset reported in December 31, 20X2 balance sheet $ 42,000 2. Tax benefit recognized in 20X2 income statement $ 42,000 3. Amount of taxes paid related to 20X3 tax return $ 8,400
Saginaw Incorporated completed its first year of operations with a pretax loss of $500,000. The tax return showed a net operating loss of $600,000, which the company will carry forward. The $100,000 book–tax difference results from excess tax depreciation over book depreciation. Management has determined that it should record a valuation allowance equal to the net deferred tax asset. Assume the current tax expense is zero. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Required: Prepare the journal entry to record the deferred tax consequences for recognition of the current year NOL before considering the valuation allowance. Prepare the journal entry to record the deferred tax consequences of the depreciation book-tax difference. Prepare the journal entry to record the deferred tax consequences of the valuation allowance.
Assume that Peridot operates in an industry for which NOL carryback is allowed. In its first four years of operations Peridot reported the following operating income (loss) amounts: 2018 $ 176,000 2019 126,000 2020 (438,000 ) 2021 476,000 There were no other items affecting deferred income taxes in any year. In 2020, Peridot elected to carry back its operating loss. The enacted income tax rate was 25%. In its 2021 income statement, what amount should Peridot report as income tax expense?
Bayelsa Corp. had the following transactions in the current year: Short term capital gain Short term capital loss Long term capital gain Long term capital loss If Bayelsa has taxable income of $70,000 before considering the capital transactions, what is Bayelsa's net capital loss that cannot be deducted in the current year? O SO $12,000 -$3,000 $5,000 -$16,000 O $19,000 net capital loss O $11,000 net capital loss O $2,000 net capital loss
Assume that Theodore Enterprises operates in an industry for which NOL carryback is allowed. Theodore Enterprises had the following pretax income (loss) over its first three years of operations: 2019 $ 430,000 2020 (970,000 ) 2021 1,360,000 For each year there were no deferred income taxes and the tax rate was 25%. In its 2020 tax return, Theodore elected a net operating loss carryback. No valuation account was deemed necessary for the deferred tax asset as of December 31, 2020. What was Theodore's income tax expense for 2021?
A corporation sold a piece of equipment during the current tax year for $78,600. The accounting records show that its cost basis, B, is $190,000 and the accumulated depreciation is $139,200. Assume that the effective income tax rate as a decimal is 0.40 (40%). Based on this information, Solve, what is (a) the gain (loss) on disposal, (b) the tax liability (or credit) resulting from this sale, (c) the tax liability (or credit) if the accumulated depreciation was $92,400 instead of $139,200 ?
Grand Corporation reported pretax book income of $639,000. Tax depreciation exceeded book depreciation by $426,000. In addition, the company received $319,500 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $53,250. Compute the company's current income tax expense or benefit. (Leave no answer blank. Enter N/A or zero.) Current income tax Deferred income tax N/A benefit $ 22,365

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS