Pest Corporation Total Reasonable Business Needs for 2022 was $290,000. Pest Corporation's Accu 2022 was $225,000 (including consideration for the Dividends listed below). Pest Corporation also had the following information for 2022: Regular Taxable Income $300,000; Federal Income Tax-$100,250; Dividends Received (less than twenty percent (20%) owned domestic corporation)-$70,000; Cash Dividends Paid in 2022-$15,000; Dividends Pald February 28, 2023-$10,000; Consent Dividends $5,000; Excess Charitable Contributions-$16,000; Net Capital Loss Adjustment-$8,000. The Accumulated Earnings Tax (Section 531) for Pest Corporation for 2022 is: O $51,381.00. O$25,950.00 O $45.533.50. O$52.395.00

Pest Corporation Total Reasonable Business Needs for 2022 was $290,000. Pest Corporation's Accu 2022 was $225,000 (including consideration for the Dividends listed below). Pest Corporation also had the following information for 2022: Regular Taxable Income $300,000; Federal Income Tax-$100,250; Dividends Received (less than twenty percent (20%) owned domestic corporation)-$70,000; Cash Dividends Paid in 2022-$15,000; Dividends Pald February 28, 2023-$10,000; Consent Dividends $5,000; Excess Charitable Contributions-$16,000; Net Capital Loss Adjustment-$8,000. The Accumulated Earnings Tax (Section 531) for Pest Corporation for 2022 is: O $51,381.00. O$25,950.00 O $45.533.50. O$52.395.00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

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