cesPetrilli Ltd. had a taxable loss of $4,500,000 in 20X8 and a further loss of $230,000 in 20X9. The tax rate in 20X8 was 32% and in20X9, 33%. All rates are enacted in the year to which they pertain. In the three years before the losses, the company had the followingtaxable income and tax rates:Taxable incomeTax rate20X520X6$1,584,000 $1,710,000Refund amount$36%There are no temporary differences other than those created by income tax losses. The company was struggling due to a competitorentering the market.Required:1. What is the amount of refund that will be claimed in 20X8?038%20X7$689,60040%The amount of the tax loss carryforward2. What is the amount of the loss carryforward in 20X8?$4,500,000

The concept of loss carryforward is based on the principle that if a company incurs a tax loss in a…

Answered: Required: 1. What is the amount of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

What would be the answer to problem (11) if a consolidated tax return were filed?a. –0–b. $300c. $1,500d. $7,500
Q.1. How much tax an owner of property will pay in a tax year 2020-2021 based on receipts of following amounts pertinent to property: 05 Rent Received per month = Rs 50,000 Un-adjustable Advance = Rs 10,000 Annual Repair Charges = 500,000 Annual Fire Insurance Premium = 30,000 Ground Rent = 50,000
Calculate the assessed Value (in K) Property tax due (in $) on and the 267,00 the property? Fair Market Assesment Rate Assesed Value Property Tax Rate Property Tax 125.60 per 1,000 due Value 80
Dd.63.
Firm E must choose between two business opportunities. Opportunity 1 will generate an $11,200 deductible loss in year 0, $7,000 taxable income in year 1, and $28,000 taxable income in year 2. Opportunity 2 will generate $8,000 taxable income in year 0 and $7,000 taxable income in years 1 and 2. The income and loss reflect before-tax cash inflow and outflow. Firm E uses a 5 percent discount rate and has a 40 percent marginal tax rate over the three-year period. Use Appendix A and Appendix B. Required: a1. Complete the tables below to calculate NPV. a2. Which opportunity should Firm E choose? b1. Complete the tables below to calculate NPV. Assume Firm E's marginal tax rate over the three-year period is 15 percent. b2. Which opportunity should Firm E choose? c1. Complete the tables below to calculate NPV. Assume Firm E's marginal tax rate is 40 percent in year 0 but only 15 percent in years 1 and 2. c2. Which opportunity should Firm E choose? Complete this question by entering your…
Keith Urban Bookstores is considering a major expansion of its business. The details of the proposed expansion project are summarized below: The company will have to purchase $600,000 in equipment at t = 0. This is the depreciable cost. The project has an economic life of four years. The cost can be depreciated on a MACRS 3-year basis, which implies the following depreciation schedule: MACRS Depreciation Rates Year 1 0.33 0.45 0.15 0.07 2 3 4 At t = 0, the project requires that inventories increase by $40,000 and accounts payable increase by $5,000. The change in net operating working capital is expected to be fully recovered at t = 4. (Hint: NWC = CA-CL) The project's salvage value at the end of four years is expected to be $0. The company forecasts that the project will generate $700,000 in sales the first two years (t = 1 and 2) and $400,000 in sales during the last two years (t = 3 and 4). Each year the project's operating costs excluding depreciation are expected to be 55% of…
2023 TAXABLE INCOME FIRST $53,359 OVER $53,359 TO $106,717 OVER $106,717 TO $165,430 OVER $ $165,430 TO $237,675 OVER $235,675 FILL IN THE BLANK TAX RATE 15.00% 20.50% 26.00% 29.32% 33.00% B) The new marginal rate of tax for someone making a salary of $100,000 and gets an $8,000 salary increase. type your text here Based on the Canadian Federal Income Tax Brackets for 2023 shown above, calculate and input the numeric answers to the questions below. Round off your answers to the nearest dollar. Do not use $, decimals or comma. For example, instead of $23,486.52, write 23487. For answers requiring a tax rate, enter only the numeric value with two decimal places, with "%" symbol. For example, 20.50%).
10. Calculate the assessed value (in $) and the property tax due (in $) on the property. (Round your answers to the nearest cent.) Fair MarketValue AssessmentRate AssessedValue PropertyTax Rate PropertyTax Due $342,900 72 $ 5.1% $
Save & Exit Subm Two independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: SITUATION Taxable income Amounts at year-end: Future deductible amounts 2. $46,000 $86,000 5,600 10,600 0 5,600 Future taxable amounts Balances at beginning of year, dr (cr): Deferred tax asset, Deferred tax liability $ 1,000 $ 3,180 0 1,000 The enacted tax rate is 30% for both situations. Required: For each situation determine the: SITUATION 2. (a.) Income tax payable currently. (b.) Deferred tax asset - balance at year-end. (c.) Deferred tax asset change dr or (cr) for the year. (d.) Deferred tax liability - balance at year-end. (e.) Deferred tax liability change dr or (cr) for the year. (f.) Income tax expense for the year. Next > 31 of 39
Mr. A provided you with the following information during the taxable year. a. P 144,400 b. P 250,000 c. P114,000 d. P 226,900 e. Answer not given
Trey, Inc. reports a taxable loss of 5210.000 for 2022. Its taxable income for the last two years was as föllows: 2020 2021 $60,000 80,000 Trey expects tavable income in future years and has a tax rate of 30% for all periods affected. The amount that Trey, Inc. reports as a net loss for Inardal reporting purposes in 2022 is: Seet one 74 ST00000 loss 0 S108000 loss OL 147000 loss 04 ST0000 loss O210000 loss
What are the after tax proceeds of the property sale? Answer is a three digit number with the correct symbol. Tax rate 30% Corporate net income - $200 Depreciated tax value of property sold - $150 Sale proceeds from sale of property - $450 Capital expenditures - $142.25

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

Required: 1. What is the amount of refund that will be claimed in 20X8? Refund amount $ 2. What is the amount of the loss carryforward in 20x8? The amount of the tax loss carryforward $ 4,500,000