от 5 18 points Mc Graw Hill TGW, a calendar year corporation, reported $4,076,000 net income before tax on its financial statements prepared in accordance with GAAP. The corporation's records reveal the following information: • TGW's depreciation expense per books was $462,000, and its MACRS depreciation deduction was $384,900. • TGW capitalized $692,000 indirect expenses to manufactured inventory for book purposes and $830,000 indirect expenses to manufactured inventory for tax purposes. • TGW's cost of manufactured goods sold was $2,571,000 for book purposes and $2,666,000 for tax purposes. . Four years ago, TGW capitalized $2,334,000 goodwill when it purchased a competitor's business. This year, TGW's auditors required the corporation to write the goodwill down to $1,570,000 and record a $764,000 goodwill impairment expense. Required: Compute TGW's taxable income. Note: Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign. × Answer is complete but not entirely correct. Amount TGW's net book income before tax $ 4,076,000 Adjustments: Depreciation Indirect inventory costs Cost of goods sold 77,100 138,000 95,000 × Book goodwill impairment 764,000 expense Tax amortization of goodwill (155,600) $ TGW's taxable income (4,529,500) < Prev 18 of 20 Next > Return to question
от 5 18 points Mc Graw Hill TGW, a calendar year corporation, reported $4,076,000 net income before tax on its financial statements prepared in accordance with GAAP. The corporation's records reveal the following information: • TGW's depreciation expense per books was $462,000, and its MACRS depreciation deduction was $384,900. • TGW capitalized $692,000 indirect expenses to manufactured inventory for book purposes and $830,000 indirect expenses to manufactured inventory for tax purposes. • TGW's cost of manufactured goods sold was $2,571,000 for book purposes and $2,666,000 for tax purposes. . Four years ago, TGW capitalized $2,334,000 goodwill when it purchased a competitor's business. This year, TGW's auditors required the corporation to write the goodwill down to $1,570,000 and record a $764,000 goodwill impairment expense. Required: Compute TGW's taxable income. Note: Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign. × Answer is complete but not entirely correct. Amount TGW's net book income before tax $ 4,076,000 Adjustments: Depreciation Indirect inventory costs Cost of goods sold 77,100 138,000 95,000 × Book goodwill impairment 764,000 expense Tax amortization of goodwill (155,600) $ TGW's taxable income (4,529,500) < Prev 18 of 20 Next > Return to question
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 24CE
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Transcribed Image Text:от
5
18
points
Mc
Graw
Hill
TGW, a calendar year corporation, reported $4,076,000 net income before tax on its financial statements prepared in accordance with
GAAP. The corporation's records reveal the following information:
• TGW's depreciation expense per books was $462,000, and its MACRS depreciation deduction was $384,900.
• TGW capitalized $692,000 indirect expenses to manufactured inventory for book purposes and $830,000 indirect expenses to
manufactured inventory for tax purposes.
• TGW's cost of manufactured goods sold was $2,571,000 for book purposes and $2,666,000 for tax purposes.
.
Four years ago, TGW capitalized $2,334,000 goodwill when it purchased a competitor's business. This year, TGW's auditors
required the corporation to write the goodwill down to $1,570,000 and record a $764,000 goodwill impairment expense.
Required:
Compute TGW's taxable income.
Note: Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign.
× Answer is complete but not entirely correct.
Amount
TGW's net book income before tax
$ 4,076,000
Adjustments:
Depreciation
Indirect inventory costs
Cost of goods sold
77,100
138,000
95,000 ×
Book goodwill impairment
764,000
expense
Tax amortization of goodwill
(155,600)
$
TGW's taxable income
(4,529,500)
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