Robin Corp. had the following in 2020: Taxable Income: $330,000 Federal income tax: $69,300 Interest on state gov't (muni) bond: $5,000 Interest on corporate bond: $10,000 Meals expense (total): $3,000 Key person life insurance premiums: $3,500 Key person life insurance proceeds: $130,000 Ordinary & necessary business expenses $250,000 Dividends (from a less-than-20%-owned US corp.): $35,000 What is Robin Corp's current E&P? Assume that there is no cash surrender value on the life insurance policy?

Robin Corp. had the following in 2020: Taxable Income: $330,000 Federal income tax: $69,300 Interest on state gov't (muni) bond: $5,000 Interest on corporate bond: $10,000 Meals expense (total): $3,000 Key person life insurance premiums: $3,500 Key person life insurance proceeds: $130,000 Ordinary & necessary business expenses $250,000 Dividends (from a less-than-20%-owned US corp.): $35,000 What is Robin Corp's current E&P? Assume that there is no cash surrender value on the life insurance policy?

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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Robin Corp. had the following in 2020: Taxable Income: $330,000 Federal income tax: $69,300 Interest on state gov’t (muni) bond: $5,000 Interest on corporate bond: $10,000 Meals expense (total): $3,000 Key person life insurance premiums: $3,500 Key person life insurance proceeds: $130,000 Ordinary & necessary business expenses: $250,000 Dividends (from a less-than-20%-owned US corp.; hint: make sure to include the 50% DRD in your E&P calculations): $35,000 What is Robin Corp.’s current E&P? Assume that there is no cash surrender value on the life insurance policy. Ans: 425,700 Q1. Same facts as previous question (use the current E&P from the previous question). Robin Corp. had the following in 2020: In addition to the current year E&P, Robin Corp. had accumulated E&P of $50,000. At the end of 2020, Robin Corp. distributed $450,000 cash to its sole shareholder, Robyn. Robyn’s stock basis prior to the distribution was…
1. 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-$6000 excess capital losses $2000 excess tax depreciation $9000 life insurance proceeds on life of its key employees $55000 rent income received in 2021 $40000 ( $30000 is prepaid and related to 2021) tax exempt interest income $8000 federal income tax liability for 2021 $15450 prepaid rent received and properly taxed in 2020 ( but not earned for financial accounting purpose until 2021) $15000 interest expense on tax exempt interest income item $2000 The taxable income for Forrway corporation for the tax year of 2021 is ( as computed in its schedule M-1 reconciliation) $90000 $100000 $80000 $70000 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…
For the 2022 tax year, llex Corporation has ordinary income of $200,000, a short-term capital loss of $30,000 and a long-term capital gain of $10,000. Calculate llex Corporation's tax liability for 2022. fill in the blank 1 of 1$.
Xenun Inc. uses the accrual method of accounting for financial reporting purposes and appropriately uses the installment method of accounting for income tax purposes. Profits of $1,200,000 recognized for books in 2020 will be collected in the following years: Collection of Profits $200,000 $400,000 2021 2022 2023 $600,000 The enacted tax rate is 30% for 2020 and 2021. The enacted tax rate is 35% for 2022 and 2023. Prepared the necessary journal entries for 2020, 2021, 2022, and 2023.
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The pretax financial income (or loss) figures for Shamrock Company are as follows. 2017 81,000 2018 (51,000 ) 2019 (35,000 ) 2020 111,000 2021 95,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 25% tax rate for 2017 and a 20% tax rate for the remaining years.Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carryforwards. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.) (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 2017 enter an account title to record carryback enter a debit amount enter a…
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Brandon Inc. reported the following pre-tax accounting incomes (losses): Accounting (loss)/income Tax rates* 2021 $10,000 25% 2022 55,000 20% 2023 (112,000) 20% 2024 21,000 19% -for 2024 and beyond All enacted in 2021 The only timing difference was in 2023 when warranty expense was $40,000 and warranties paid out in cash was $30,000. For any losses, it is probable that 80% of them will be applicable against any future taxable income. Required: Prepare journal entries to record the tax implications for 2023.
The profit before tax, as reported in the Statement of Profit or Loss and Other Comprehensive Income of Oliver Ltd for the year ended 30 June 2021, amounted to $40,000 including the following revenue and expense items. June 2021 $ Interest revenue 4,500 Bad debts expense 6,000 Depreciation expense - plant 7,000 Annual Leave Expense 2,500 Rent Expense 2,000 Fines and Penalties (non-deductible) 500 Government grant (exempt from tax) 9,000 Additional information: а. The deduction for depreciation for tax purposes was $8,000. b. Bad debts written off for the year were $5,500. С. Interest revenue is receivable in advance and is taxed when received. Total cash receipts for interests were $8,500 during the year. d. The annual leave provision was $3,000 the end of the year (the opening balance was $2,000). е. Rent payments of $3,000 were made during the year. f. The tax rate is 30%. Required Prepare the current tax worksheet and the journal entry to recognise current tax at 30 June 2021.
Irving, Inc. pays its general manager an annual bonus of 6% of profit after deduction for both bonus and corporate income tax. For the year 2020, the company realized profit of ₱10,800,000 before said deductions. The income tax rate is 30%. What is the corporate income tax liability at December 31, 2020?
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Oak Corporation has the following general business credit carryovers: 2016 $7,250 2017 21,750 2018 8,250 2019 25,750 Total carryovers $63,000 The general business credit generated by activities during 2020 equals $50,400 and the total credit allowed during the current year is $87,000 (based on tax liability). a. Enter the amount (if any) of each year's carryover utilized in 2020. Year Amount ofCarryoverUtilized 2016 $ 2017 $ 2018 $ 2019 $ 2020 $ b. What is the amount of any unused credits carried forward to 2021?