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Corporate Fin Focused Approach

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter2: Financial Statements, Cash Flow, And Taxes

Section: Chapter Questions

Problem 12P

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provide correct answer general accounting

O'Reilly Beverage Company reported net income of $750,000 for 2016. In
addition, the company deferred a $25,000 pretax loss on derivatives and
had pretax net unrealized holding gains on investment securities
of $10,000.
Prepare a separate statement of comprehensive income for 2016. The
company's income tax rate is 40%. (Amounts to be deducted should be
indicated with a minus sign.)

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O’Reilly Beverage Company reported net income of $650,000 for 2021. In addition, the company deferred a $60,000 pretax loss on derivatives and had pretax net unrealized gains on debt securities of $40,000. Prepare a separate statement of comprehensive income for 2021. The company’s income tax rate is 25%.
In 2016, Bodily Corporation reported $290,000 pretax accounting income. The income tax rate for that year was 28%. Bodily had an unused $130,000 net operating loss carryforward from 2014 when the tax rate was 31%. What would be Bodily's income tax payable for 2016? (General Account)[03]
Provide answer general accounting
The pretax financial income (or loss) figures for Martinez Company are as follows. 2012 $148,000 2013 275,000 2014 83,000 2015 (148,000 ) 2016 (362,000 ) 2017 115,000 2018 104,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 45% tax rate for 2012 and 2013 and a 40% tax rate for the remaining years.Prepare the journal entries for the years 2014 to 2018 to record income tax expense and the effects of the net operating loss carrybacks and carryforwards assuming Martinez Company uses the carryback provision. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
What is the 2016 net income?
Ivanhoe Property Management Company announced that in the year ended June 30, 2017, its earnings before taxes amounted to $1,452,000. Calculate its taxes using Exhibit 3.6. (Round answers to 2 decimal places, e.g. 15,175.25.) Exhibit 3.6 U.S. Federal Corporate Income Tax Rates for 2016 The federal corporate marginal tax rate varies from 15 to 39 percent. Generally speaking, smaller companies with lower taxable income have lower tax rates than larger companies with higher taxable incomes. Smaller businesses are given preferential treatment to encourage new business formation. (1) Corporations Taxable Income $0-$50,000 50,001-75,000 75,001-100,000 100.001-335.000 335.001-10,000,000 10,000,001-15,000,000 15.000,001-18,333.333 More than 18.333,333 Pay This Amount on the Base of the Bracket S 0 7,500 13,750 22,250 113.900 3,400,000 5,150,000 6,416.667 (3) Marginal Tax Rate: Tax Rate on the Excess Over the Base 15% 25 34 39 34 35 38 35 Average Tax Rate at Top of Bracket 15.0% 18.3 22.3 34.0…
The pretax financial income (or loss) figures for Whispering Company are as follows. 2016 325,000 2017 104,000 2018 (208,000 ) 2019 (128,000 ) 2020 164,000 2021 124,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 45% tax rate for 2016, and a 20% tax rate for the remaining years.Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carrybacks and carryforwards assuming Whispering Company uses the carryback provision. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.)
The accounting income (loss) figures for Pronghorn Corporation are as follows: 2015 $162,000 2016 242,000 I 2017 82,000 2018 (162,000) 2019 (382,000) 2020 2021 140,000 154,000 Accounting income (loss) and taxable income (loss) were the same for all years involved. Assume a 30% tax rate for 2015 and 2016, and a 25% tax rate for the remaining years. Prepare the journal entries for each of the years 2017 to 2021 to record income tax expense and the effects of the tax loss carrybacks and carryforwards, assuming Pronghorn Corporation uses the carryback provision first. All income and losses relate to normal operations and it is more likely than not that the company will generate substantial taxable income in the future.
The pretax financial income (or loss) figures for Shamrock Company are as follows. 2017 81,000 2018 (51,000 ) 2019 (35,000 ) 2020 111,000 2021 95,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 25% tax rate for 2017 and a 20% tax rate for the remaining years.Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carryforwards. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit 2017 enter an account title to record carryback enter a debit amount enter a…
The pretax financial income (or loss) figures for Marin Company are as follows. 2015 $161,000 2016 248,000 2017 76,000 2018 (161,000 ) 2019 (390,000 ) 2020 119,000 2021 95,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 25% tax rate for 2015 and 2016 and a 20% tax rate for the remaining years.Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carryforwards. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.)
The pretax financial income (or loss) figures for Marin Company are as follows. 2017 76,000 2018 (48,000 ) 2019 (43,000 ) 2020 116,000 2021 104,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 25% tax rate for 2017 and a 20% tax rate for the remaining years.Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carryforwards. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary. Account Titles and Explanation Debit Credit 2017 enter an account title to record carryback enter a debit amount enter a credit amount enter an account title to record carryback enter a debit amount enter a credit amount 2018 enter an account title to record carryforward enter a debit amount enter a…
The pretax financial income (or loss) figures for Teal Mountain Company are as follows. 2017 76,000 2018 (48,000 ) 2019 (38,000 ) 2020 111,000 2021 105,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 25% tax rate for 2017 and a 20% tax rate for the remaining years. Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carryforwards. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.)

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