Tatoo Inc. reported a net capital loss of $13,200 in 2018. The company had a net capital gain of $4,500 in 2016 and $3,200 in 2015. In 2017, although thecompany suffered a net operating loss, it had net capital gains of $1,200. What is the amount of Tatoo's capital loss carryover remaining after it appliesthe carryback?Multiple Choice$5,500.$8,700.$13,200.$4,300.

Introduction: Net capital loss: Loss incurred on selling of assets like buildings , Machinery , Land…

Answered: Tatoo Inc. reported a net capital loss…

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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Greedy Ventureshad revenues of $925,000 in 2014. Its operating expenses (excluding depreciation) amounted to $325,000, depreciation charges were $125,000, and interest costs totaled $55,000. If the firm pays a marginal tax rate of 34 percent, calculate its net income after taxes.
Flint Corp. began operations in 2014. During the years 2014-2016, it reported net income and declared dividends as follows. Net income Dividends declared 2014 $31,000 $ –0– 2015 122,000 –0– 2016 230,000 49,000 During 2017, Flint Corp.: ● discovered that it had failed, in 2015, to record $50,000 in depreciation on equipment in one of its warehouses. ● changed, on January 1 ,2017, from the average cost to the FIFO method of accounting for its inventory. If Flint Corp. had applied the FIFO method to it inventory in prior years, cumulative net income (before tax) would have been $15,000 lower than originally reported. ● reported income before income tax expense of $480,000. ● declared and paid dividends to common shareholders of $80,000. Flint’s effective income tax rate for all years was 40%. (a) Prepare a 2017 retained earnings statement for Flint Corp. (List items that increase retained…
Orange Corporation was formed in 2017. In that year it had a net operating loss of $2,000. In 2018, it had a net income of $5,000. In 2019, the company reported a net operating loss of $9,000. What is the amount of net operating loss carryforward to 2020, if any? $9,000. $4,000. $0. $6,000.
Shamrock Inc. reported income from continuing operations before taxes during 2017 of $ 2,175,000. Additional transactions occurring in 2017 but not considered in the $ 2,175,000 are as follows. 1. A gain of $ 109,000 (pretax) as a result of selling securities from its investment portfolio. 2. A $ 27,000 loss before taxes as a result of operating the discontinued clothing division during 2017. 3. A loss of $ 88,000 before taxes as a result of disposing of its clothing division. Assume that this transaction meets the criteria for discontinued operations. 4. An uninsured $ 128,000 loss due to a fire. 5. At the beginning of 2015, the corporation purchased a machine for $ 220,000 (salvage value of $ 40,000) that had a useful life of 10 years. The bookkeeper used straight-line depreciation for 2015, 2016, and 2017, but failed to deduct the salvage value in computing the depreciation base. 6. The corporation decided to change its method of inventory pricing from…
Jetson Spacecraft Corp. shows the following information on its 2015 income statement: sales = $319,767; costs = $178,650; other expenses = $5,786; depreciation expense = $18,444; interest expense = $14,233; taxes = $17,008; dividends = $10,711. In addition, you’re told that the firm issued $5,368 in new equity during 2015 and redeemed $5,570 in outstanding long-term debt. If net fixed assets increased by $21,756 during the year, what was the addition to NWC?
Sara is trying to analyze Henley Company finances but realizes that she was missing the company's net profits after taxes for the current year. Find the company's net profits after tax.ROA = 2.5%Total asset turnover = 0.5COGS = $105,000Gross profit margin = 0.30
Consider the following potential events that might have taken place at Global Conglomerateon December 30, 2018. For each one, indicate which line items in Global’s balance sheet wouldbe affected and by how much. Also indicate the change to Global’s book value of equity. (In allcases, ignore any tax consequences for simplicity.)a. Global used $20 million of its available cash to repay $20 million of its long-term debt.b. A warehouse fire destroyed $5 million worth of uninsured inventory.c. Global used $5 million in cash and $5 million in new long-term debt to purchase a $10 million building.d. A large customer owing $3 million for products it already received declared bankruptcy, leaving no possibility that Global would ever receive payment.e. Global’s engineers discover a new manufacturing process that will cut the cost of its flagshipproduct by over 50%.f. A key competitor announces a radical new pricing policy that will drastically undercutGlobal’s prices.
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In 2014, Angela Corporation has a net capital loss of $80,000. Angela Corp. also had net capital gains in the prior years. 2010: net capital gain $30,000 2011: net capital gain $20,000 2012: net capital gain $60,000 2013: net capital gain $10,000 (a) What is the capital loss carryback in 2012? (b) What is the capital loss carryback in 2011?

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