QUESTION 23 For 2021, Forrway Corporation, an Accrual Basis calendar year corporation, had Net income Per Books of $111.550 and the following transactions Premiums on Life Insurance Policy on its key employees - $6.000; Excess Capital Losses $12,000: Excess Tax Depreciation - $9,000; Life insurance Proceeds on life of its key employees - $65,000: Rent Income received in 2021 - $30,000: (20,000 is prepaid and relates to 2021X Tax-Exempt Interest Income- S8.000; Federal income fax lNability for 2021- $15,450; Prepaid Rent received and properly taxed in 2020 (but not earned for Financial Accounting purposes until 2021)-$5,000: Interest Expense on Tax-Exempt Interest Income item - $2.000. The total amount " added" to Net Income Per Books for Forrway Corporation in its Schedule M-1 Reconciliation for the tax year of 2021 is: O$ 80,000. $167,000. O$ 55,450. O$ 87,000. QUECTI ON 14

QUESTION 23 For 2021, Forrway Corporation, an Accrual Basis calendar year corporation, had Net income Per Books of $111.550 and the following transactions Premiums on Life Insurance Policy on its key employees - $6.000; Excess Capital Losses $12,000: Excess Tax Depreciation - $9,000; Life insurance Proceeds on life of its key employees - $65,000: Rent Income received in 2021 - $30,000: (20,000 is prepaid and relates to 2021X Tax-Exempt Interest Income- S8.000; Federal income fax lNability for 2021- $15,450; Prepaid Rent received and properly taxed in 2020 (but not earned for Financial Accounting purposes until 2021)-$5,000: Interest Expense on Tax-Exempt Interest Income item - $2.000. The total amount " added" to Net Income Per Books for Forrway Corporation in its Schedule M-1 Reconciliation for the tax year of 2021 is: O$ 80,000. $167,000. O$ 55,450. O$ 87,000. QUECTI ON 14

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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