Studios reported a net capital loss of $34,000 in year 5. It reported net capital gains of $22,000 in year 4 and $35,000 in year 6. What is the amount andnature of the book-tax difference in year 6 related to the net capital carryover?Multiple Cholce$23.000 unfavorable.$23.000 favorable.$12,000 unfavorable.$12,000 favorable.

Taxable Income: The amount of adjusted gross income that is liable to be taxed is known as taxable…

Answered: Studios reported a net capital loss of…

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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I need last two requirement i.e 4 and 5 The pre-tax income statements for Moonstone Ltd. for two years (summarized) were as follows: 20X8 20X9 Revenues $ 266,000 $ 330,000 Expenses 181,000 237,000 Pre-tax income $ 85,000 $ 93,000 For tax purposes, the following income tax differences existed: a. Revenues on the 20X9 statement of profit and loss include $37,000 rent, which is taxable in 20X8 but was unearned at the end of 20X8 for accounting purposes. b. Expenses on the 20X9 statement of profit and loss include political contributions of $12,500, which are not deductible for income tax purposes. c. Expenses on the 20X8 statement of profit and loss include $20,900 of estimated warranty costs, which are not deductible for income tax purposes until 20X9. Required: 1. What was the accounting carrying value and tax basis for unearned revenue and the warranty liability at the end of 20X8 and 20X9? 2. Compute (a) income tax payable, (b) deferred income tax, and (c) income tax expense for each…
Mercury Limited reported earnings of $75,000 in 20X9. The company has $55,000 of depreciation expense this year, and claimed. CCA of $90,000. The tax rate was 25%. At the end of 20X8, there was a $10,000 loss carryforward reported in a deferred tax asset. account valued at $2,200, and a deferred tax liability of $35,200 caused by capital assets with a net book value of $500,000 and UCC of $340,000. Required: What is the amount of income tax expense in 20X9? Tax expense $ Prepare the income tax entry or entries. View transaction list No 1 2 Date 20X9 23,250 20X9 View journal entry worksheet Income tax expense General Journal Deferred income tax asset Income tax payable Income tax payable Income tax expense Debit Credit
JBC Inc. has the following information reported by its chief accountant for the current year: Sales Operating income Total assets Current liabilities Target rate of return Corporate tax rate WACC $4,500,000 $505,000 $2,500,000 $150,000 18% 35% 13% How much is stakeholders' expected return in dollars? O a) $55,500 O b) $22,750 c) $305,500 d) $305,500
From the following particulars of Sriman Ltd., calculate the remuneration of Managing Director at 5% of net profit.a) Remuneration of Managing Director 10,000b) Provision for bad debts 5,000C) Provision for tax 75,000d) Depreciation written off 40,000e) Loss on sale of investments 35,000f) Depreciation allowable as per income-tax provisions 35,000g) Net profit after considering the above items 2,25,000
Edwards Electronics recently reported $15,250 of sales, $5,500 of operating costs other than depreciation, and $1,250 of depreciation. The company had no amortization charges, it had $3,500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 25%. How much was its net operating profit after taxes (NOPAT)? Select the correct answer. a. $6,324.00 b. $6,349.50 Oc$6,273.00 O d. $6,298.50 e. $6,375.00
Km. 205.
1.) XQP corporation expensed $50,000 of bad debts during the year. The activity in the allowance for doubtful accounts was $70,000 Beginning Balance Bad Debt Accrued for the Year Bad Debts Written Off Ending Balance $50,000 $35,000 $85,000 What is the BOOK-TO-TAX difference of XQP Corp for bad debts? O A.SO O B.$15,000 Unfavorable OC. $35,000 Unfavorable O D. $50,000 Unfavorable O E. $85,000 Unfavorable
1
Ma4. The difference between LIFO and FIFO valuation methods is $2,500. Given that the corporation pays a 35% tax rate, what is the savings to the organization to use the LIFO method of accounting.
Has Barnes & Noble been profitable in the last three years?
Sol Limited. reported earnings of $510,000 in 20X8. The company has $91,000 of depreciation expense this year, and claimed CCA of $142,000. The tax rate was 25%. At the end of 20X7, there was a $122.000 loss carryforward that was not recorded because use was considered less than probable. The company also reported a deferred tax liability of $71,000 caused by capital assets with a net book value of $1,310,000 and UCC of $1,010,000. The tax rate had been 20% in 20X7 Required: What is the amount of income tax expense in 20X8? Tax expense Prepare the income tax entry or entries. View transaction list No 1 Date 20X8 View journal entry worksheet Income tax expense Income tax payable Deferred income tax asset General Journal Debit Credit 114,750

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