Answered: On June 30, Flores Corporation…

On June 30, Flores Corporation discontinued its operations in Mexico. On September 1, Flores disposed of the Mexico facility at a pretax loss of $ 690,000. The applicable tax rate is 30%.

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: ABC's pre-tax financial income is P1,800,000. Current income tax rate is 30%. In ABC Company's books…

A: Taxable income = Pre-tax financial income + Fines paid for late payment of taxes + Impairment of…

Q: JG Ltd. has been in business for five years and incurs a loss of $520,000 in 20x15. The company has…

A: Year Particulars Debit Credit 2015 Income tax receivable - carry back $155800…

Q: Li Corporation reported pretax book income of $705,000. Tax depreciation exceeded book depreciation…

A: The deferred tax liability is created when the taxes to be paid as per income tax are greater than…

Q: Prepare the journal entry to recognize the income tax benefit of the net operating loss.

A: An operating loss occurs when a company's expenses exceed its revenues from core business…

Q: Wynn Farms reported a net operating loss of $116,000 for financial reporting and tax purposes in…

A: Formulas:

Q: Jahlil Corporation has GAAP net income of $4,670,000,000. To compute Jahlil's AFSI, the following…

A: The amount of J Corporation's AFSI is computed as follows:Amount of AFSI = GAAP Net Income + Federal…

Q: On April 1, 2020, Desert Company decided to dispose of their Scorpion Division. Desert sold Scorpion…

A: Net income is a after tax income. In the given question, there are incomes from continuing and…

Q: AP Trayer Corporation has income from continuing operations of $290,000 for the year ended December…

A: For investors and analysts, comprehensive income is crucial because it depicts a company's whole…

Q: During 2023, Door Inc. decided to dispose of Bell Division, which is considered a separate reporting…

A: The company is doing business to generate a profit. Sometimes, a company operates in two or more…

Q: 46. Akoto Corporation reported pretax book income of $2,000,000. Tax depreciation exceeded book…

A: For income tax purposes, tax depreciation is the systematic allocation of a physical asset's…

Q: Saginaw Incorporated completed its first year of operations with a pretax loss of $627,500. The tax…

A: The journal entry to record the deferred tax consequences of the current year NOL before considering…

Q: Petrilli Ltd. had a taxable loss of $3,600,000 in 20X8 and a further loss of $140,000 in 20X9. The…

A: Journal entry records the accounting transactions of a business in a journal book. All the business…

Q: ABC COMPANY Income Statement shows $ 297,500 profit for the year 2019. The following information are…

A: if expenses in income statements are undervalued then income will be overbooked so add the portion…

Q: 30, Reyes Corporation discontinued its operations in Mexico. On September 1, Reyes disposed of the…

A: Discontinued Operations -Parts of a company's operations that have been shut down or divested are…

Q: Hemant Ltd, carries on a manufacturing business and had a number of transactions for the current tax…

A: Ordinary income is that income that usually arises in the normal course of business and it does not…

Q: Jahlil Corporation has GAAP net income of $4,670,000,000. To compute Jahlil's AFSI, the following…

A: Solution:-Introduction:AFSI is the net income or loss on the taxpayer's applicable financial…

Q: amount should Munoz report as its current income tax liability on its December 31, 2022 statement of…

A: Income tax liability refers to the amount which is required to pay to the authorities of taxation.…

Q: Pina Colada Corp. has income from continuing operations of $413,000 for the year ended December 31,…

A: Net income is a company's revenue that includes all of the revenues received and expenses incurred…

Q: division as discontinued operation. For the year ended December 31, 2022, the disposal group…

A: Trading loss refers to the sum value of principal losses incurred in an account because of reasons…

Q: KT Corporation reported pretax book income of $200,000,000. Tax depreciation exceeded book…

A: Book income is used by an organization to report their earnings to the shareholders and the users of…

Q: a. Prepare the journal entry to record the deferred tax consequences for recognition of the current…

A: The journal entry to record the deferred tax consequences of the current year NOL before considering…

Q: Recording Net Operating Loss Carryback During Year 4, Lamb Inc. suffered a tax loss of $-100,000.…

A: The carry back of loss results in a tax refund and adjustment of the previous year's income. If the…

Q: Trayer Corporation has income from continuing operations of $254,000 for the year ended December 31,…

A: Income from continuing operations: It is the after tax income generated by a company from its…

Q: vlss

A: The objective of the question is to record the journal entries for the deferred tax asset and its…

Q: Kara Fashions uses straight-line depreciation for financial statement reporting and MACRS for income…

A: when there is taxable temporary difference arise between accounting profit and tax profit then…

Q: Li Corporation reported pretax book income of $690,000. Tax depreciation exceeded book depreciation…

A: The deferred tax liability is created when the taxes to be paid as per income tax are greater than…

Q: enefit 0,000

A: Introduction Net Operating Loss: A net operating loss (NOL) is the outcome of a company's…

Q: Saginaw Incorporated completed its first year of operations with a pretax loss of $500,000. The tax…

A: A deferred tax liability or deferred tax asset is created when there is the temporary difference…

Q: Flounder Corp. has income from continuing operations of $246,500 for the year ended December 31,…

A: Comprehensive Income includes Income statement and the other comprehensive income for the period…

Q: Li Corporation reported pretax book income of $670,000. Tax depreciation exceeded book depreciation…

A: The deferred tax liability is created when the taxes to be paid as per income tax are greater than…

Q: Petrilli Ltd. had a taxable loss of $3,600,000 in 20X8 and a further loss of $140,000 in 20X9. The…

A: "Since you have asked a question with sub-parts more than three, as per guidelines, the first three…

Q: Esquire Comic Book Company had income before tax of $1,000,000 in 2021 before considering the…

A: Income from continuing operations:When the revenue that a business generates from its primary…

Q: In the previous year, Hasbro Inc had a deferred tax asset of $11,750,000, attributable to its only…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Hafnaoui Company reported pretax net income from continuing operations of $1,104,000 and taxable…

A: After deducting all costs, taxes, and interest from revenues that were incurred during the…

Q: Bridgeport Corp. purchased depreciable assets costing $36,600 on January 2, 2023. For tax purposes,…

A: Depreciation is an accounting technique which is used to reduce the book value of the assets over a…

Q: During Year 4, Lamb Inc. suffered a tax loss of $(360,000). Lamb qualifies for a two-year loss…

A: Answer:- Journal entry meaning:- In accounting a journal entry is a record of a commercial…

Q: During the year, Belyk Paving Co. had sales of $2,600,000. Cost of goods sold, administrative and…

A: Calculate the net income as follows:

Q: On December 31, 2021, the end of the fiscal year, California Microtech Corporation completed the…

A: Income statement is the financial statement that records all the income and expenses of the business…

Q: Eurgher Ltd. had a taxable loss of $354,000 in 20X7. The tax rate in 20X7 is 32%. In the past three…

A: Claiming a loss refund involves offsetting losses from one tax year against taxable income from…

Q: - compute the company's deferred income tax expense or benefit.

A: Deferred tax liability represents taxes payable in future periods due to temporary differences…

Q: Mallow Incorporated, which has a 21% tax rate, purchased a new business asset. First-year book…

A: Deferred tax is a concept in accounting that arises due to differences in how certain items are…

Question

100%

On June 30, Flores Corporation discontinued its operations in Mexico. On September 1, Flores disposed of the Mexico facility at a pretax loss of $ 690,000. The applicable tax rate is 30%. Show the discontinued operations section of Flores’s statement of comprehensive income.

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Introduction

VIEW

Calcuation

VIEW

Conclusion

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Pine Ltd is reviewing its deferred tax for the year. In each of the following situations prepare the end-of-period adjustment journal entries to account for income tax on the initial appearance or reversal of any temporary differences. Explain in each case why particular accounts are affected. 1.The company purchased a depreciable asset at the beginning of the year for $200 000. For accounting purposes, an annual depreciation rate of 20% straight-line is used, whereas for taxation the rate is 30% straight-line. 2.The company’s provision for long-service leave at the beginning and end of the year are $80 000 and $77 500 respectively. In the current year, $10 000 in long-service leave was paid to a long-standing employee. 3. The company has interest receivable of $25 000 at the end of the year. No interest was receivable at the beginning of the year. Interest income is included in taxable profit only when received. 4.The company has revalued land at the end of the year. The…
For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income $ 300,000 Permanent difference (15,000 ) 285,000 Temporary difference-depreciation (20,000 ) Taxable income $ 265,000 Tringali's tax rate is 25%. Assume that no estimated taxes have been paid. What should Tringali report as its deferred income tax liability as of the end of its first year of operations?
Required information [The following information applies to the questions displayed below.] Last year, Cougar Corporation (CC) reported a net operating loss of $25,000. In the current year, CC expected its current- year tax liability to be $260,000, so it made four equal estimated tax payments of $65,000 each. Cougar closed its books at the end of each quarter. The following schedule reports CC's taxable income at the end of each quarter: Quarter-End First Second Third Fourth Cumulative Taxable Income $ 300,000 700,000 1,000,000 1,500,000 CC's current-year tax liability on $1,500,000 of taxable income is $315,000. a. Does CC owe underpayment penalties on its estimated tax payments?
Black Company, organized on January 2, 20X1, had pre-tax accounting income of $500,000 and taxable income of $800,000 for the year ended December 31, 20X1. The only temporary difference is accrued product warranty costs, which are expected to be paid as follows: 20X2 20X3 20X4 20X5 $100,000 50,000 50,000 100,000 Circumstances indicate that it is highly likely that Black will have taxable income in the future. It had no temporary differences in prior years. The enacted income tax rate is 21%. Required: 1. In Black's December 31, 20X1, balance sheet, how much should the deferred tax asset be? 2. Suppose that as of December 31, 20X1, a newly enacted law called for the tax rate to change to 25%, effective January 1, 20X3. Then what would be the amount of the deferred tax asset at December 31, 20X1?
vt,1
Hafnaoui Company reported pretax net income from continuing operations of $912,000 and taxable income of $587,500. The book–tax difference of $352,500 was due to a $235,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $94,000 due to an increase in the reserve for bad debts, and a $211,500 favorable permanent difference from the receipt of life insurance proceeds. At the end of the year, the reserve for bad debts had a balance of $117,500; the beginning balance in the account was $23,500. Hafnaoui's beginning book (tax) basis in its fixed assets was $1,014,000 ($821,000) and its ending book (tax) basis is $1,535,000 ($1,107,000). a. Compute Hafnaoui Company's current income tax expense. b. Compute Hafnaoui Company's deferred income tax expense or benefit. c. Compute Hafnaoui Company's effective tax rate. d. Provide a reconciliation of Hafnaoui Company's effective tax rate with its hypothetical tax rate of 21 percent.
ces Petrilli Ltd. had a taxable loss of $4,500,000 in 20X8 and a further loss of $230,000 in 20X9. The tax rate in 20X8 was 32% and in 20X9, 33%. All rates are enacted in the year to which they pertain. In the three years before the losses, the company had the following taxable income and tax rates: Taxable income Tax rate 20X5 20X6 $1,584,000 $1,710,000 Refund amount $ 36% There are no temporary differences other than those created by income tax losses. The company was struggling due to a competitor entering the market. Required: 1. What is the amount of refund that will be claimed in 20X8? 0 38% 20X7 $689,600 40% The amount of the tax loss carryforward 2. What is the amount of the loss carryforward in 20X8? $4,500,000
Li Corporation reported pretax book income of $605,000. Tax depreciation exceeded book depreciation by $401,000. Li's beginning book (tax) basis in its fixed assets was $1,905,000 ($1,704,000) and its ending book (tax) basis is $1,805,000 ($1,206,000). In addition, the company received $305,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $69,000. Assuming a tax rate of 21 percent, compute the company's deferred income tax expense or benefit. Note: Enter all numbers as a positive number and indicate whether a deferred tax expense or a deferred tax benefit. Deferred income tax expense
Munabhai