EA# 9 Tax on Corporation: Problem Solving FnBQuestion 2 of 43Fill in the blanksLa Pagayo Corporation commenced business operations in calendar year 2001. It is subject to MCIT beginning 2005. Income taxes during the years from 2005 to 2012 are as follows:Normal CorporateYearMinimum CorporateIncome TaxExcess of MCIT over NCITIncome Tax2005P25,000P100,000P75,0002006130,000150,00020,0002007200,000190,000020080300,000300,000200910,00050,00040,000201015,00060,00045,00020118,00040,00032,00020121,00050,00049,000Income tax still due and payable for 2006 isNOTE: Answers are in numerical form. COMMA, PESO SIGN and other cha< PreviousContType here to searchO E28°C Heavy t-stormShot on OnePlusPowered by Triple Camerahp

Income tax payable is higher of Normal Corporate Income Tax (NCIT) and Minimum Corporate Income Tax…

Answered: Question 2 of 43 Fill in the blanks La…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Problem 19-01 The following information is available for Metlock Corporation for 2020. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $122,000. This difference will reverse in equal amounts of $30,500 over the years 2021–2024. 2. Interest received on municipal bonds was $11,000. 3. Rent collected in advance on January 1, 2020, totaled $56,700 for a 3-year period. Of this amount, $37,800 was reported as unearned at December 31, 2020, for book purposes. 4. The tax rates are 40% for 2020 and 35% for 2021 and subsequent years. 5. Income taxes of $294,000 are due per the tax return for 2020. 6. No deferred taxes existed at the beginning of 2020. Compute taxable income for 2020. Taxable income for 2020 $enter Taxable income for 2020 in dollars Compute pretax financial income for 2020.…
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.
Exercise 19.8 (Two Temporary Differences, One rate, 3 years). Button Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax Financial Income $840,000 $910,000 $945,000 Excess Depreciation Expense on tax Return (30,000) (40,000) (10,000) Excess Warranty Expense in Financial Income 20,000 10,000 8,000 Taxable Income $830,000 $880,000 $943,000 The income tax rate is 20% for all years. Instructions: a) Assuming there were no temporary differences prior to 2020, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020,2021, and 2022. b) Indicate how deferred taxes will be reported on the 2022 balance sheet. Button’s product warranty is for 12 months. Deferred tax asset ( $ 0 + $ 0 + $ 0 )..............................$ 0 Deferred tax liability ( $ 0 + $ 0 + $ 0…
Recording Income Tax Expense Rangee Rover Inc. had taxable income of $218,500 for the year. The GAAP basis of accounts receivable (net) is $13,800 less than the tax basis of accounts receivable. Assuming a tax rate of 25%, record the income tax journal entry on December 31. Assume zero beginning balances in deferred tax accounts. • Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). Date Account Name Cr. Dec. 31 Income Tax Expense Deferred Tax Liability Income Tax Payable N/A To record income tax expense. > > Dr. 54,625 0 0 O 0x 13,800 * 40,825 * 0
Compute HC Inc's current-year taxable income given the following information relating to its 2020 activities. Also, compute HC's Schedule M-1 assuming that HC's federal income tax expense for book purposes is $30,000. Use Exhibit 16-6, • Gross profit from inventory sales of $310,000 (no book-tax differences). • Dividends HC received from 28 percent-owned corporation of $120,000 (this is also HC's pro rata share of the corporation's earnings). Expenses other than DRD, charitable contribution (CC), and net operating loss (NOL) are $300,000 (no book-tax differences). • NOL carryover from prior year of $12,000. • Cash charitable contribution of $50,000. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Compute HC's Schedule M-1 assuming that HC's federal income tax expense for book purposes is $30,000. (Enter all values as positive numbers.) Schedule M-1: Reconcillation of Income (Loss) per Books With Income per Return 1. Net income (loss) per books 2. Federal…
Question 1 of 6 > -/ 1 View Policies Current Attempt in Progress Coronado Corporation has temporary differences at December 31, 2020, that result in the following deferred taxes. Deferred tax liability related to depreciation difference $38,500 Deferred tax asset related to warranty liability 63,800 Deferred tax liability related to revenue recognition 104,000 Deferred tax asset related to litigation accruals 24.900 Indicate how these balances would be presented in Coronado's December 31, 2020, balance sheet. Coronado Corporation Balance Sheet (Partial) II %24
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✓
Buffalo Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax financial income $811,000 $932,000 $992,000 Excess depreciation expense on tax return (31,500 ) (39,100 ) (9,900 ) Excess warranty expense in financial income 19,900 9,800 8,300 Taxable income $799,400 $902,700 $990,400 The income tax rate for all years is 20%. (a) Your Answer Correct Answer (Used) Assuming there were no temporary differences prior to 2020, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020, 2021, and 2022. (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…
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…
Operating income and tax rates for Carla Vista Company's first three years of operations were as follows: 2020 2021 2022 O Income $350000 ($950000) $1630000 Amount $190000 Assuming that Carla Vista Company opts only to carryforward its 2021 NOL, what is the amount of deferred tax asset or liability that Carla Vista Company would report on its December 31, 2021 balance sheet? $285000 $237500 Enacted tax rate $190000 25% 20% 30% Deferred tax asset or liability Deferred tax liability Deferred tax asset Deferred tax liability Deferred tax asset
1 - X Iron and Steel Industry and Trade Joint Stock Company of 2018 year corporate tax amount is 70.000 TL and the joint stock company has paid 50.000 TL of this amount through the bank and the remaining 20.000 TL has been covered from the prepaid tax account.Based on this information, which of the following statements is false?A) 102- The banks account has been credited with TL 50,000.B) 371- Prepaid Taxes and Other Liabilities Account of Profit for the Period 20,000 has been credited.C) 370-Prepaid Taxes and Other Liabilities of the Period Profit Hs 70.000 is debited.D) 360 Taxes Payable and Funds Account 70,000 has been credited.E) 193- Prepaid Taxes and Funds account is credited with 20.000 TL.
Problem 6-55 (LO. 3) For 2021, MSU Corporation has $500,000 of adjusted taxable income, $22,000 of business interest income, and $120,000 of business interest expense. It has average annual gross receipts of more than $26,000,000 over the prior three taxable years. a. What is MSU's interest expense deduction for 2021?$fill in the blank 1 b. How much interest expense can be deducted for 2021 if MSU's adjusted taxable income is $300,000?$fill in the blank 2

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