The Fitness Studio, Inc.'s, 2021 income statement lists the following income and expenses: EBITDA $662,000, EBIT $535,000, interest expense = $70,000, and net income = $441,000. Calculate the 2021 taxes reported on the income statement. (Enter your answer in dollars. Round your answer to the nearest dollar amount.) Taxes

The Fitness Studio, Inc.'s, 2021 income statement lists the following income and expenses: EBITDA $662,000, EBIT $535,000, interest expense = $70,000, and net income = $441,000. Calculate the 2021 taxes reported on the income statement. (Enter your answer in dollars. Round your answer to the nearest dollar amount.) Taxes

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Callis Company reported net income after taxes of $140,000 for 2022. The income statement also…

Q: Use the following information for Taco Swell, Incorporated, (assume the tax rate is 21 percent):…

A: Income and balance sheet statements:

Q: The following income statement pertains to Russel Co as of 12/31/2021: Revenue Operating Expenses:…

A: Journal entries made to close temporary accounts and move their balances to permanent accounts on…

Q: All of the accounts of the Grass is Greener Company have been adjusted as of December 31, 2022, with…

A: Introduction: Net income is the amount of money left over for deducting all expenses such as…

Q: You are the new controller for Moonlight Bay Resorts. The company CFO has asked you to determine the…

A: Bonds are long-term debt securities. The bonds can be issued discount when the market offers higher…

Q: New Planet Structures, Inc., builds environmentally sensitive structures. The company's 2021…

A: Liabilities refer to the obligation that a company is obliged to pay within a period of time. The…

Q: (i)Statement of Profit or Loss (classify expenses by function) for the year ended 31 December 2020.

A: Income statement The purpose of preparing the income statement is to determine the net income of the…

Q: The Fitness Studio, Incorporated's income statement lists the following income and expenses: EBITDA…

A: Taxable income = EBIT-Interest expense Taxable income = $535000-$70000 = $465,000

Q: The Fitness Studio, Incorporated’s income statement lists the following income and expenses: EBITDA…

A: Income tax is paid or calculated after deduction of all allowable expenses such as depreciation and…

Q: Bezos Inc. charged customers $1,000 for services performed during the year ended December 31, 2021.…

A: The question is based on the concept of Financial Accounting. Revenue is the most significant item…

Q: Read the following information and answer questions that follow. Brian Ndlovu is employed as a…

A: Statement showing Brian's tax payable/refundable for the year ended 30th June 2020 a Particulars…

Q: The Fitness Studio, Inc.s 2018 income statement lists the following income and expenses: EBIT =…

A: EBIT = 538,000 Interest Expense = 63,000 Net Income = 435,000 Taxes = ?

Q: Rockland Shoe Company, prides itself as being the "world's leading marketer of U.S. branded non-…

A: Income statement is one of the financial statements which is prepared to depict the profitability of…

Q: which deduction should a person take?

A: Business travel deductions allow individuals to offset expenses incurred while traveling for work…

Q: Choose the correct. On March 15, Calloway, Inc., paid property taxes of $480,000 for the calendar…

A: Income statement shows the financial statement which reports the financial performance of the…

Q: Rotweiler Obedience School's December 31, 2018, balance sheet showed net fixed assets of $1,750,000,…

A: In this question, we are required to determine the net capital spending for 2019.

Q: In a studio inc 2021 income statement lists the following income and expenses EBITDA equals $650,000…

A: Given, EBIT = 538,000 Interest = 63,000 Earnings before Tax = EBIT - Interest = 538,000 - 63,000…

Q: ear as of 12/31 year 2021 $ 300,000 1,200,000 2822 $1,575,000 380,000 1,620,000 250,000 1,750,000…

A: Construction Contract - Construction contracts are enforceable agreements that specify the tasks…

Question

The Fitness Studio, Inc.'s, 2021 income statement lists the following income and expenses: EBITDA $662,000, EBIT = $535,000,
interest expense $70,000, and net income $441,000.
Calculate the 2021 taxes reported on the income statement. (Enter your answer in dollars. Round your answer to the nearest
dollar amount.)
Taxes

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introducing Income Statement

VIEW

Step 2: Calculate the Income Tax Expense

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year ended December 31, 2021 ($ in thousands): sales revenue, $17,300; cost of goods sold, $7,200; selling expenses, $1,400; general and administrative expenses, $900; interest revenue, $150; interest expense, $250. Income taxes have not yet been recorded. The company’s income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company’s income statement every year. The company’s controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2021 ($ in thousands). All transactions are material in amount. Investments were sold during the year at a loss of $320. Schembri also had an unrealized gain of $420 for the year on investments in debt securities that qualify as components of comprehensive income. One of the company’s factories…
Use the information for Purrfect Pets below to calculate each of the required numbers. Assume that expenses include taxes and the company has no other sources of revenue. December 31, 2019 December 31, 2020 Current Assets $186,600 Current Assets $237,300 Current Liabilities 95,300 Current Liabilities 91,400 Contributed Capital 69,100 Contributed Capital 80,200 Retained Earnings 27,700 Retained Earnings 81,900 During the period 1/1/019 to 12/31/19 During the period 1/1/20 to 12/31/20 Sales Revenue 178,400 Sales Revenue 202,500 Expenses 145,200 Expenses 134,200 Required: a. Determine the current ratio for the company for 2019 and 2020. Provide your answer in the space given below. 2019 2020 Current Ratio $ $ Based on your calculated result, answer the following question: Has Purrfect Pets' liquidity been increased or decreased in 2020? In the space provided below, enter "1" for increase, enter "-1" for decrease, enter "0" for no change. Your answer: b. Determine the net income for the…
The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year ended December 31, 2024 ($ in thousands): sales revenue, $19,100; cost of goods sold, $8,100; selling expenses, $1,490; general and administrative expenses, $990; interest revenue, $250; interest expense, $220. Income taxes have not yet been recorded. The company’s income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company’s income statement every year. The company’s controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2024 ($ in thousands). All transactions are material in amount. Investments were sold during the year at a loss of $410. Schembri also had an unrealized gain of $520 for the year on investments in debt securities that qualify as components of comprehensive income. One of the company’s factories…
The Fitness Studio, Inc.'s 2018 income statement lists the following income and expenses. EBIT=$538,000. Interest expense=$63,000, and net income =$435,000. Calculate the 2018 earnings per share
Prepare an income statement for the year ending December 31, 2021
Marigold Consulting uses the cash basis of accounting and a fiscal year ending December 31. Beginning on September 1, 2021, Marigold performs services for Bramble International at a rate of $3900 per month. On February 12, 2022, Bramble pays Marigold $19500 in full for all services rendered from September 1, 2021 to January 31, 2022. Marigold understated revenues by ________ on its 2021 income statement. $15600 $19500 $3900 $11700
You are the new controller for Moonlight Bay Resorts. The company CFO has asked you to determine the company’s interest expense for the year ended December 31, 2021. Your accounting group provided you the following information on the company's debt: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. On July 1, 2021, Moonlight Bay issued bonds with a face amount of $2,000,000. The bonds mature in 20 years and interest of 11% is payable semiannually on June 30 and December 31. The bonds were issued at a price to yield investors 12%. Moonlight Bay records interest at the effective rate. 2. At December 31, 2020, Moonlight Bay had a 10% installment note payable to Third Mercantile Bank with a balance of $530,000. The annual payment is $75,000, payable each June 30. 3. On January 1, 2021, Moonlight Bay leased a building under a finance lease calling for four annual lease payments of $40,000 beginning January 1, 2021.…
The Fitness Studio, Inc.s 2018 income statement lists the following income and expenses: EBIT = $538,000, interest expense = $63.000, and net income = $435,000. Calculate the 2018 taxes reported on the income statement (Enter your answer In dollars. Round your answer to the nearest dollar amount.) Taxes < Prev 4 of 5 Nexh ere to search
Brady Corporation is preparing an income statement for year ended 12/31/20. During the final week of 2020, Brady earned revenues of $6,000 on account. It expects to collect the $6,000 on 1/10/21. Brady also incurred $1,500 of payroll costs which will be paid to employees on 1/15/21. Brady also paid cash of $500 for office cleaning services. No other transactions occurred in 2020. What is the net income of Brady Corporation if it uses cash basis accounting?