Sunland Corporation reported the following results for its first three years of operation: 2020 income (before income taxes) 2021 loss (before income taxes) 2022 income (before income taxes) $360000 (3300000) 3600000 There were no permanent or temporary differences during these three years. Assume a corporate tax rate of 20% for 2020 and 2021, and 30% for 2022. Assuming that Sunland elects to use the carryforward provision and not the carryback provision, what income (loss) is reported in 2021?
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- Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and taxable income for 2020. The prior period adjustment was the result of an error in calculating bad debt expense for 2019. The current tax rate is 30%, and no change in the tax rate has been enacted for future years. When the company applies intraperiod income tax allocation, the prior period adjustment will be shown on the: a. income statement at 12,000 b. income statement at 8,400 (net of 3,600 income taxes) c. retained earnings statement at 12,000 d. retained earnings statement at 8,400 (net of 3,600 income taxes)Rhodes Corporations financial statements are shown after part f. Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions. a. What is the net operating profit after taxes (NOPAT) for 2020? b. What are the amounts of net operating working capital for both years? c. What are the amounts of total net operating capital for both years? d. What is the free cash flow for 2020? e. What is the ROIC for 2020? f. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.) Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)In the current year, Madison Corporation had 50,000 of taxable income at a tax rate of 25%. During the year, Madison began offering warranties on its products and has a Warranty liability for financial reporting purposes of 5,000 at the end of the year. Warranty expenses are not deductible until paid for income tax purposes. Prepare the journal entry to record Madisons income taxes at the end of the year.
- Oriole Corporation reported the following results for its first three years of operation: 2020 income (before income taxes) $ 330000 2021 loss (before income taxes) ( 3000000 ) 2022 income (before income taxes) 3300000 There were no permanent or temporary differences during these three years. Assume a corporate tax rate of 20% for 2020 and 2021, and 30% for 2022.Assuming that Oriole elects to use the carryforward provision and not the carryback provision, what income (loss) is reported in 2021? $ 0 $( 2934000) $( 2100000) $( 3000000)Shamrock Corporation reported the following income for each of the years indicated. For each year, accounting income and income for tax purposes were the same. All tax rates indicated were enacted by the beginning of 2020. Shamrock's policy is to carry back any tax losses first before carrying forward any remaining losses to future years. Income/ Tax Year (Loss) Rate 2020 25,000 30% 2021 45,000 33% 2022 13,000 35% 2023 (94,000 ) 38% 2024 (46,000 ) 32% 2025 73,000 32% Prepare the journal entries for the years 2022 to 2025 to record income taxes. Assume that, at the end of each year, the loss carryforward benefits are judged more likely than not to be realized in the future. Shamrock follows the future income taxes method under ASPE. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the…Blossom Corporation reported the following results for its first three years of operation: 2020 income (before income taxes) $280000 2021 loss (before income taxes) (2500000 ) 2022 income (before income taxes) 2800000 There were no permanent or temporary differences during these three years. Assume a corporate tax rate of 20% for 2020 and 2021, and 30% for 2022.Assuming that Blossom elects to use the carryback provision, what income (loss) is reported in 2021? (Assume that any deferred tax asset recognized is more likely than not to be realized.)
- Josh Company, a calendar-year corporation has the following income before income tax provison and estimated effective annual income tax rates for the first three quarters of year 1: Income before income tax provision Estimated effective annual rate at end of quarter Quarter First P600,000 40% Second 700,000 40% Third 400,000 45% 1. Josh income tax provision in its interim income statement for the third quarter should be?Wheaton Inc. reported the following results for its first three years of operations: 2019 Income (before income taxes) $ 40,000 2020 Loss (before income taxes) (300,000) 2021 Income (before income taxes) 400,000 There were no permanent or reversible differences during these three years. Assume an income tax rate of 30% for 2019 and 2020, and 40% for 2021, and that any tax loss carryforward is more likely than not to be realized. If Wheaton elects to use the carryback provisions, what after tax net income (loss) is reported for 2020? Select one: a. $(300,000). b. $(196,000). c. $(184,000). d. $0. e. none of the above.For the current year, LNS corporation reported the following taxable income at the end of its first, second, and third quarters. Quarter-End Cumulative Taxable Income First $ 1,860,000 Second 2,620,000 Third 3,510,000 What are LNS’s minimum first, second, third, and fourth quarter estimated tax payments, using the annualized income method? (Enter all amounts as positive values. Leave no answer blank. Enter zero if applicable. Round "Annualization Factor" for Fourth quarter to 7 places. Round other intermediate computations and final answers to the nearest whole dollar amount.)
- Verse Company's income statement for the year ended December 31, 2020 shows pretax income of P2,000,000. The following items are treated differently on the tax returns and on the accounting records: Financial Accounting Income Tax Return Rent Expense P200,000 PO Depreciation expense Interest on government bonds 500,000 800,000 50,000 Income tax rate is 30%. How much is the current portion of Verse' income tax expense?XYZ Company reported the following pretax income (loss) and related tax rates during the years 2016-2021. Year Pretax Income (loss) Таx rate 2016 $75,000 30% 2017 150,000 30% 2018 240,000 40% 2019 (540,000) 48% 2020 210,000 40% 2021 300,000 42% a. Prepare the journal entries for the years 2019 and 2020 to record income taxes and the tax effects of the loss. Assume that XYZ elects the carryback provision where possible and it is probable that it will realize benefits of any loss carryforward. b. Prepare the portion of the income statement that presents your answer in part (a) for the year ended 2019.Grateful Enterprises had the following income before tax provision and effective annual tax rate for the first three quarters of the current year: 1st Quarter - 5,000,000 (30%); 2nd Quarter - 6,000,000 (30%); 3rd Quarter- 7,000,000 (25%). What amount should be reported as income tax expense in the interim income statement for the third quarter? * Your answer