Items 16 and 17 are based on the following information:Nokia Company purchased pressing machinery that cost P54,000 on January 4, 2016.The entire cost was recorded as an expense. The machinery has a nine-year life anda P50,400 depreciable cost. The error was discovered on December 20, 2018.16. Ignoring income tax considerations, Nokia's statement of comprehensive incomefor the year ended December 31, 2018 should show depreciation expense in theamount ofA. P48,400.B. P32,700.C. P16,800.D. P 5,600.17. Before the correction was made, the January 1, 2018, retained earnings wasunderstated byA. P54,000.B. P48,400.C. P42,800.D. P37,200.

Depreciation cost=50400 Life =9 years Machinery cost

The entire cost was recorded as an expe a P50,400 depreciable cost. The error 16. Ignoring income tax considerations, for the year ended December 31, 2- amount of A. P48,400. B. P32,700. C. P16,800. D. P 5,600. 17. Before the correction was made, understated by A. P54,000. B. P48,400. C. P42,800. D. P37,200.

The entire cost was recorded as an expe a P50,400 depreciable cost. The error 16. Ignoring income tax considerations, for the year ended December 31, 2- amount of A. P48,400. B. P32,700. C. P16,800. D. P 5,600. 17. Before the correction was made, understated by A. P54,000. B. P48,400. C. P42,800. D. P37,200.

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

10030.
Required information Problem 16-8 Multiple differences; taxable income given; two years; balance sheet classification; change in tax rate [LO16-4, 16-6, 16-8] [The following information applies to the questions displayed below.] Arndt, Inc., reported the following for 2018 and 2019 ($ in millions): 2018 2019 Revenues $ 995 $1,073 Expenses Pretax accounting income (income statement) Taxable income (tax return) 800 840 $ 195 $ 195 233 $ 245 Tax rate: 40% a. Expenses each year include $30 million from a two-year casualty insurance policy purchased in 2018 for $60 million. The cost is tax deductible in 2018. b. Expenses include $2 million insurance premiums each year for life insurance on key executives. c. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2018 and 2019 were $39 million and $57 million, respectively. Subscriptions included in 2018 and 2019 financial reporting revenues were $36 million ($14 million collected in 2017 but not…
Wynn Farms reported a net operating loss of $225,000 for financial reporting and tax purposes in 2021. The enacted tax rate is 25%. Taxable income, tax rates, and income taxes paid in Wynn's first four years of operation were as follows: Income Taxable Income 2017$ 73,000 2018 83,000 2019 145,000 2020 Таx Таxes Paid $21,900 24,900 58,000 18,000 Rates 30% 30 40 40,000 45 Required: 1. NOL carrybacks are not allowed for most companies, except for property and casualty insurance companies as well as some farm-related businesses. Assume Wynn is one of those businesses. Complete the table given below and prepare the journal entry to recognize the income tax benefit of the net operating loss. 2. Show the lower portion of the 2021 income statement that reports the income tax benefit of the net operating loss. X Answer is not complete. Complete this question by entering your answers in the tabs below. Required Required Required 1 GJ 1 2 NOL carrybacks are not allowed for most companies, except…
Please show work and explain
Book income of $1,900,000 Included in the computation were favorable temporary differences of $230,000, unfavorable temporary differences of $226,000 and favorable permanent differences of $168,000. What is the company's deferred income tax expense or benefit?
vt,1
Status Single DATA TABLE Total Tax Payments $ 8,342 Taxable Income $ 55,060.00 20,000 30,000 Total Tax $ 7,972 40,000 Refund Amount Amount Owed Use Goal Seek to find the Taxable Income (C5) that results in the Total Tax (C7) shown. Answer to the nearest 0.01. Do not include any punctuation ($ or ,) in your answer! Example of accepted answer: 12345.67Examples of incorrect answers: $12,345.67, 12,345.67, $12345.67 Taxable Income Total Tax Answer $2,600 Answer $4,200 Answer $8,500 Answer $10,500 Answer $22,000 Be sure to answer to the neared 0.01.
Required information Problem 16-8 Multiple differences; taxable income given; two years; balance sheet classification; change in tax rate [LO16-4, 16-6, 16-8] [The following information applies to the questions displayed below.] Arndt, Inc., reported the following for 2018 and 2019 ($ in millions): 2018 2019 Revenues $ 995 $1,073 Expenses Pretax accounting income (income statement) Taxable income (tax return) 800 840 $ 195 $ 195 233 $ 245 Tax rate: 40% a. Expenses each year include $30 million from a two-year casualty insurance policy purchased in 2018 for $60 million. The cost is tax deductible in 2018. b. Expenses include $2 million insurance premiums each year for life insurance on key executives. c. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2018 and 2019 were $39 million and $57 million, respectively. Subscriptions included in 2018 and 2019 financial reporting revenues were $36 million ($14 million collected in 2017 but not…
B11. Exercise 8-28 (Algorithmic) (LO. 8) Jebali Company reports gross income of $560,000 and other property-related expenses of $364,000 and uses a depletion rate of 21%. Calculate Jebali's depletion allowance for the current year.
jagdish
Sh10 Please help me Solution Thankyou.
7. Consider the following excerpts from the income statement and tax returns of Rashford Inc. Amounts in $ Income before taxes Taxable income a. 22.4% b. 19.6% Income statement Depreciation 200 Warranty expenses* 120 Fine 100 *Warranty expenditures are tax deductible when payments are made to fulfil the warranty. C. 23.38% d. 17.92% e. None of the above 1,500 ANSWER: A Tax returns The statutory tax rate is 21%. There are no temporary or permanent differences other than the ones listed in the table. The effective tax rate of Rashford Inc. is: ? 250 0 0