Sales revenue, $ Interest revenue, $ Expenses, $ Depreciation, $ Company 1 1,500,000 31,000 -754,000 48,000 Company 2 820,000 25,000 -591,000 18,000 a. Calculate the federal income tax for the year for each company b. Determine what percentage of each company's sales revenue was paid in taxes. C. Estimate the taxes using an effective rate of 34% of the entire TI. Determine the percentage error made relative to the exact taxes in part (a)

Sales revenue, $ Interest revenue, $ Expenses, $ Depreciation, $ Company 1 1,500,000 31,000 -754,000 48,000 Company 2 820,000 25,000 -591,000 18,000 a. Calculate the federal income tax for the year for each company b. Determine what percentage of each company's sales revenue was paid in taxes. C. Estimate the taxes using an effective rate of 34% of the entire TI. Determine the percentage error made relative to the exact taxes in part (a)

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

In an income statement, total Sales and revenue in $230,000 and total operating expenses is $80,000. If tax rate is 20%how much will the net income be? O a. $30,000 Ob $120,000 Oc. $248,000 Od $150.000 Next page
Woods Company reports income before taxes in the amount of $925,000. The current tax expense is $365,375 and the effective tax rate is 27%. What is the conservatism ratio for Woods Company? Group of answer choices 0.45 0.19 0.40 0.68
Question 1:- Brodsky's Corporation had net sales of 2600000, Sales discounts 45000, cost of goods sold 1440000, Notes receivable 115000, A/R 15000, other expenses 100000, administrative expenses 206000, with drawls 47000, selling expenses 280000, and interest expense 29000, other revenues 500000 . Brodsky's tax rate is 30%. R/Prepare income statement for the year ended December 31, 2014.
You have calculated the adjusted profit for the company to be $2,000,000. Capital Allowance was $20,000. The tax rate is 25%.Estimated tax paid during the year is $750,000. Employment Tax Credit available (which is nonrefundable)is $700,000. The tax refundable for this company is.a. $950,000b. $500,000c. $250,000d. $200,000
2
Information relating to Waukegan Company for the current year is as follows: Income from continuing operations before tax $ 140,000 Income from discontinued operations (pretax) 40,000 What is the amount of the income tax expense that should be allocated to the income from discontinued operations? (Assume the effective tax rate is 25%) income tax expense
G. R. Edwin Inc. had sales of $5.88 million during the past year. The cost of goods sold amounted to $2.8 million. Operating expenses totaled $2.57 million, and interest expense was $30,000. Use the corporate tax rates shown in the popup window, Taxable Income Marginal Tax Rate $0−$50,000 15% $50,001−$75,000 25% $75,001−$100,000 34% $100,001−$335,000 39% $335,001−$10,000,000 34% $10,000,001−$15,000,000 35% $15,000,001−$18,333,333 38% Over $18,333,333 35% , to determine the firm's tax liability. What are the firm's average and marginal tax rates?
Based on the following amounts, how much is the income tax due based on the 25% regular corporate income tax rate? Gross sales 4,000,000.00 Sales discounts, returns and allowances 100,000.00 Cost of sales 1,500,000.00 Itemized deductions 800,000.00 Group of answer choices P975,000.00 P400,000.00 P600,000.00 P425,000.00
The following information is given to you relating to the operations of PrincehallCorporation: The income tax rate is 40%. Net sales $11,862 Cost of sales 8,321 Gross margin ? Selling, general, and administrative expenses $ 2,743 Depreciation, amortization, and asset write-offs 278 Total operating expenses: ? Income from operations : ? Interest expense 91 Interest and other income 11 Earnings before income taxes: ? Income taxes ? Net earnings: ? Determine the earnings before taxes:
The following information is available for Hunt Company after its first year of operations: Income before taxes $250,000 Federal income tax payable $104,000 Deferred income tax (4,000) Income tax expense 100,000 Net income $150,000 Hunt estimates its annual warranty expense as a percentage of sales. The amount charged to warranty expense on its books was £95,000. Assuming a 40% income tax rate, what amount was actually paid this year for warranty claims?
Assuming Sunny-D Cafe has a tax rate of 30 percent, calculate sales for the firm given the following financial information: net income of $37,900; interest expense of $11,500; depreciation expense of $14,200; and costs of $80,900. Points: 1 A. $144,500 B. $154,143 C. $160,743 D. $165,114 E. Remember to breathe
Problem 4: JIMIN Company has an agreement to pay the executive officers a bonus of 5% of the entity's earnings. The income for the year before bonus and tax is P8,750,000. The income tax rate is 30% of income after bonus. Requirements: Determine the BONUS under each of the following independent assumptions: 9. A. Bonus is based on income before bonus and before tax. В. Bonus is based on income after bonus and after tax. C. Bonus is based on income after bonus but before tax. D. Bonus is based on income after tax but before bonus