P1-7 Average corporate tax rates Ordinary income in 2017 was taxed subject to the rates shown in the accompanying table. Using the data in the table, perform the following: a. Calculate a firm's tax liability, after-tax earnings, and average tax rate for the following levels of corporate earnings before taxes: $ 20,000; $70,000; $300,000; $700, 000; $1.2 million; $16 million; and $22 million.

P1-7 Average corporate tax rates Ordinary income in 2017 was taxed subject to the rates shown in the accompanying table. Using the data in the table, perform the following: a. Calculate a firm's tax liability, after-tax earnings, and average tax rate for the following levels of corporate earnings before taxes: $ 20,000; $70,000; $300,000; $700, 000; $1.2 million; $16 million; and $22 million.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. If a corporation’s tax return shows taxable income of $98,300 for Year 2 and a tax rate of 40%, how much will appear on the December 31, Year 2, balance sheet for “Income taxes payable” if the company has made estimated tax payments of $35,600 for Year 2? 2. An income statement that reports current tax expense of $81,800 and deferred tax benefit of $23,700 will report total income tax expense of $? If total tax expense is $47,500 and deferred tax expense is $64,900, then the current portion of the expense computation is referred to as current tax expense of $ ?
The tax rates for a particular year are shown below: Taxable Income $0 - 50,000 50,00175,000 75,001 100,000 100,001 335,000 What is the average tax rate for a firm with taxable income of $155,456? 25.92% 20.88% 28.41% 39.00% Tax Rate 15% 25% 34% 39% 28.23%
Calculate the corporate income tax for each of the following corporate taxable incomes. a. $15,000 b. $88,000 c. $180,000 d. $400,000 e. $16,700,000
Given the tax rates as shown, what is the marginal and average tax rates for a firm with taxable income of $102,000? Taxable Income Tax Rate $0-50,000 15% $50,001-75,000 25% $75,001-100,000 34% $100,001-335,000 39%
Marginal tax rates Using the tax rate schedule given here, perform the following: a. Find the marginal tax rate for the following levels of sole proprietorship earnings before taxes: $14,700; $59,500; $89,600; $156,000; $247,000; $456,600; and $1 million. b. Plot the marginal tax rates (measured on the y-axis) against the pretax income levels (measured on the x-axis).
The components of income before tax were: Years ended December 31 ($ millions) 2018 U.S. Non-U.S. Total 2017 2016 $12,283 $10,626 $5,925 482 492 437 $12,765 $11,118 $6,362 Income tax expense/(benefit) consisted of the following: Years ended December 31 ($ millions) Current tax expense U.S. federal 2017 2016 Non-U.S. U.S. State Total current $1,967 $1,340 $1,253 $169 $149 $133 97 23 15 Deferred tax expense U.S. federal $2,233 $1,512 $1,401 $224 $(598) $(1,096) Non-U.S. $(4) $3 $(4) U.S. State 5 (6) (44) Total deferred $(1,095) $221 $(646)
Refer to the following table to answer the following questions: 2012 Federal Income Tax Brackets Taxable Income Tax Rate 10 percent $0-$8,700 $8,701-$35,350 15 percent 25 percent $85,651-$178,650 28 percent $178,651-$388,350 33 percent 35 percent $35,351-$85,650 Over $388,350 Using the table, what is the total payroll tax bill (assume zero state and local income taxes) for someone who makes $67,000 per year? O $5.125.50 O $17.905.25 O $23,030.75 O $16.933.75 O $13.751.25
A Comparison of Firm Performance 1 2 2013 Financials 3 Net operating revenues 4 Cost of goods sold 5 Gross profit 6 Selling, general, and administrative expense 7 Other costs 8 Operating income 9 Interest expense 10 Other income (loss) - net 11 Income before income taxes 12 Income taxes 13 Net income 14 Assets 15 Cash and cash equivalents 16 Net receivables 17 Inventories 18 Prepaid expenses and other 19 Total current assets 20 Property, plant and equipment 21 Goodwill 22 Other assets 23 Total assets 24 Liabilities and Stockholder Equity 25 Accounts payable 26 Short-term debt 27 Total current liability 28 Long-term debt 29 Other liabilities 30 Total liabilities 31 Stockholder equity 32 B Walmart 469,162 352,488 116,674 88,873 27,801 2,251 187 25,737 7,981 17,756 7,781 6,768 43,803 1,588 59,940 116,681 20,497 5,987 203,105 59,099 12,719 71,818 41,417 113,235 89,870 C Macy's 27,931 16,725 11,206 8,440 88 2,678 388 (134) 2,156 767 1,389 1,836 371 5,308 361 7,876 8,196 3,743 1,176 20,991…
Marginal tax rates Using the tax rate schedule attached Perform the following: a. Find the marginal tax rate for the following levels of sole proprietorship earnings before taxes: $16,800; $59,500; $89,600; $151,000; $245,000; $451,200; $1,000,000 b. Plot the marginal tax rates (measured on the y-axis) against the pretax income levels (measured on the x-axis).
Calculating Deferred Income Taxes The Sample Corporation prepared the following income statements and income tax returns for Year 1 through Year 4. Income Statement Sales Operating expenses Pretax net income Provisions for income taxes Net income Year 1 Year 2 Year 3 Year 4 $1,000 $1,000 $1,000 $1,000 650 650 650 650 $350 $350 $350 $350 195 195 195 195 $155 $155 $155 $155 Income Tax Return Year 1 Sales $1,000 Year 2 Year 4 $1,000 $1,000 Operating expenses 900 900 400 400 Taxable income $100 $100 $600 $600 310 Income tax payable 80 80 310 After-tax net income $20 $20 $290 $290 Year 3 $1,000 $ Calculate the balance in the company's deferred income tax liability account at the end of each year. Year 1 0 x Year 2 $ 0 x Year 3 $ 0 x Year 4 $ 0✓
P14-9 Calculating and recording a company's income tax The accounting records of Rhyme Timber Ltd provide income statement data for 2016: Total revenue Total expenses Profit before income tax $940000 Requirements 1 Calculate taxable income for the year. (750 000) $190000 Total expenses include depreciation of $50000 calculated under the straight-line method. In calculating taxable income on the tax return, Rhyme Timber uses the reducing-balance (RB) method. RB depreciation was $80000 for 2016. The company income tax rate is 30%. 2 Prepare the journal entry in respect of income tax for 2016. 3 Show how to report income tax liabilities on Rhyme's balance sheet.
Q1. Taxable income and applicable tax rates for C.J. Company’s first four years are shown below. For each year, taxable income and pretax financial income are identical. In the table below, taxable income is before any consideration of NOL carryback and carryforward. The enacted tax rates were known at 1/1/2018. Taxable Income Enacted tax rate 2018 $200 20% 2019 ($300) 15% 2020 $340 25% 2021 $210 25% Now assume that C.J. opted to carryback its 2019 NOL and carryforward any unused NOL to future years. Complete the table below for 2018 through 2021 to show the amount of income tax payable to the IRS or the refund due from the IRS for each year. Put your answer in the table below. Show tax payable as a positive number and tax refund as a negative number. Year Tax…