The accumulated profits of CLA Corporation amounted to P250,000 at December 31, 2020. The following transactions affected accumulated profits during the year: Net income P125,000 Reversal of appropriation for contingency 60,000 Dividend declaration 10,000 Appropriation for treasury shares 12,000

The accumulated profits of CLA Corporation amounted to P250,000 at December 31, 2020. The following transactions affected accumulated profits during the year: Net income P125,000 Reversal of appropriation for contingency 60,000 Dividend declaration 10,000 Appropriation for treasury shares 12,000

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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The following information is available for Marigold Corporation for 2020. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $124,000. This difference will reverse in equal amounts of $31,000 over the years 2021–2024. 2. Interest received on municipal bonds was $9,300. 3. Rent collected in advance on January 1, 2020, totaled $64,200 for a 3-year period. Of this amount, $42,800 was reported as unearned at December 31, 2020, for book purposes. 4. The tax rates are 40% for 2020 and 35% for 2021 and subsequent years. 5. Income taxes of $297,000 are due per the tax return for 2020. 6. No deferred taxes existed at the beginning of 2020. Taxable income in 2020 = 742,500 Pretax financial income for 2020 = 833,000 Prepare the income tax expense section of the income statement for 2020, beginning with “Income before income taxes. picture below:
The following information is available for Marigold Corporation for 2020. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $124,000. This difference will reverse in equal amounts of $31,000 over the years 2021–2024. 2. Interest received on municipal bonds was $9,300. 3. Rent collected in advance on January 1, 2020, totaled $64,200 for a 3-year period. Of this amount, $42,800 was reported as unearned at December 31, 2020, for book purposes. 4. The tax rates are 40% for 2020 and 35% for 2021 and subsequent years. 5. Income taxes of $297,000 are due per the tax return for 2020. 6. No deferred taxes existed at the beginning of 2020. Compute taxable income for 2020. Taxable income for 2020 Compute pretax financial income for 2020. Pretax financial income for 2020 Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2020 and 2021. Assume…
For the year ended December 31, 2024, Fidelity Engineering reported pretax accounting income of $1,004,000. Selected information for 2024 from Fidelity’s records follows: Interest income on municipal governmental bonds $ 60,000 Depreciation claimed on the 2024 tax return in excess of depreciation on the income statement 84,000 Carrying amount of depreciable assets in excess of their tax basis at year-end 144,000 Warranty expense reported on the income statement 40,000 Actual warranty expenditures in 2024 30,000 Fidelity's income tax rate is 25%. At January 1, 2024, Fidelity's records indicated balances of zero and $15,000 in its deferred tax asset and deferred tax liability accounts, respectively. Determine the amounts necessary to record income taxes for 2024, and prepare the appropriate journal entry. What is Fidelity’s 2024 net income?
REQUIRED: How much purchases should be reported on the statement of comprehensive income for the year?
For the year ended December 31, 2024, Fidelity Engineering reported pretax accounting income of $988,000. Selected information for 2024 from Fidelity's records follows: Interest income on municipal governmental bonds $ 44,000 Depreciation claimed on the 2024 tax return in excess of depreciation on the income statement Carrying amount of depreciable assets in excess of their tax basis at year-end Warranty expense reported on the income statement 68,000 112,000 32,000 Actual warranty expenditures in 2024 22,000 Fidelity's income tax rate is 25%. At January 1, 2024, Fidelity's records indicated balances of zero and $11,000 in its deferred tax asset and deferred tax liability accounts, respectively. Required: Determine the amounts necessary to record income taxes for 2024, and prepare the appropriate journal entry. What is Fidelity's 2024 net income?
During 2020, Gorilla Corporation, a calendar year C corporation, has net short-term capital gains of $15,000, net long-term capital losses of $105,000, and taxable income from other sources of $460,000. Prior years' transactions included the following: 2016 net short-term capital gains $40,000 2017 net long-term capital gains 18,000 2018 net short-term capital gains 25,000 2019 net long-term capital gains 20,000 If an amount is zero, enter "0". a. Answer the following to determine how are the capital gains and losses treated on Gorilla's 2020 tax return. How much is Gorilla's net capital loss for 2020?$ What is the amount of the capital loss deduction on Gorilla's 2020 tax return?$ Any excess net capital loss is carried back or forward as a short-term capital loss . b. Determine the amount of the 2020 capital loss that is carried back to each of the previous years. Carried back to 2017 $ Carried back to 2018 $ Carried back to 2019 $…
Please answer asap! UPVOTE will be given! No long explanation needed. The following information pertains to GMA Corp. for the year ended December 31, 2021: Accumulated Profits – Free, January 1, 2021: ₱3,800,000 Accumulated Profits – Appropriated for contingency, January 1, 2021: ₱700,000 Net income for 2021: ₱2,324,000 Share dividends declared November 25, 2021 and distributed on December 15, 2021: ₱370,000 Cash dividends declared December 1, 2021 and distributable on January 15, 2022: ₱490,000 Appropriation of accumulated profits for contractual obligations in 2021: ₱1,500,000 Reversal of appropriation for contingency in 2021: ₱700,000 How much is the total Accumulated Profits as of December 31, 2021?
ABC Inc. reported P950,000 net income for the quarter ended September 30, 2020 which included the following after-tax items: • A P600,000 gain realized in May 2020 was allocated equally to the second, third and fourth quarters of 2020. • A P160,000 write-down of inventory of June 30, 2020. • In addition, the entity paid P480,000 on February 1, 2020, for 2020 calendar-year real property tax. Of this amount, P120,000 was allocated to the third quarter of 2020. What is the net income for the quarter ended September 30, 2020?
Could you please solve the question for the investment in BI.
In 2020, Ace Corporation reports gross income of $200,000 (including $150,000 of profit from its operations and $50,000 in dividends from less-than-20%-owned domestic corporations) and $230,000 of operating expenses. A. What is Ace’s NOL for 2020 B. Assume that Ace expects 2021’s taxable income to be $20,000 and 2022’s taxable income to be $100,000, both before any NOL deduction in the carryover year. What NOL deductions can Ace expect to claim in 2021 and 2022 C. How would your answer to Part b change if, in addition to the 2020 NOL, Ace also had a $5,000 NOL carryover from a loss occurring before 2018?
The following information pertains to BFAR Corp. for the year ended December 31, 2021: . Accumulated Profits Free, January 1, 2021: P3,800,000 . Accumulated Profits - Appropriated for contingency, January 1, 2021: P700,000 . Net income for 2021: P2,347,000 . Share dividends declared November 25, 2021 and distributed on December 15, 2021: P370,000 . Cash dividends declared December 1, 2021 and distributable on January 15, 2022: P490,000 Appropriation of accumulated profits for contractual obligations in 2021: P1,500,000 . Reversal of appropriation for contingency in 2021: P700,000 How much is the total Accumulated Profits as of December 31, 2021? .
1. 1. Marjorie corporations ”total” reasonable business needs for 2021 was $320,000. Marjorie corporation accumulated earnings and profits ( E & P) at the beginning of 2021 was $210,000 ( including consideration for the dividends listed below) Marjorie Corporation also had the following information for 2021: Taxable income $350000: federal income tax $119,000 : dividends received ( less than 20% owned domestic corporation $ 100,000 : Cash dividends paid in 2021 $ 40,000: dividends paid January 31 2022 $ 20,000: Consent dividends $ 10,000: Excess charitable contribution $ 16,000. Net capital loss adjustment $ 8000. The Accumulated taxable income for purpose of the Accumulated Earnings Tax for Marjorie’s Corporation for the year of 2021 is 1.$97000 2 $90000 3 $110000 4 $100000 Answer is $97,000 please explain this how 2. Marjorie corporations ”total” reasonable business needs for 2021 was $320,000. Marjorie corporation accumulated earnings and profits ( E & P) at the beginning of…