The following accounts are extracted from the worksheet of X Company on December 31, 2020: Income from continuing operati ons after taxes: $2,000,000 During the year, the company suffered from abnormal and infrequent hurricane damages that had resulted in a $60,000 pretax loss During the year also, the company stopped the activities of its REW segment which had resulted in a pretax operating loss of $100,000 and a net of tax loss on di sposal $20.000 Tax Rate was 30% Based on the data above, discontinued operations will have the following effect in the income statement: O Decrease by $90,000 O Decrease by $120.000 Decrease by S$84.000 None of the above

The following accounts are extracted from the worksheet of X Company on December 31, 2020: Income from continuing operati ons after taxes: $2,000,000 During the year, the company suffered from abnormal and infrequent hurricane damages that had resulted in a $60,000 pretax loss During the year also, the company stopped the activities of its REW segment which had resulted in a pretax operating loss of $100,000 and a net of tax loss on di sposal $20.000 Tax Rate was 30% Based on the data above, discontinued operations will have the following effect in the income statement: O Decrease by $90,000 O Decrease by $120.000 Decrease by S$84.000 None of the above

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

Please help me
Altima Corporation discovered an error in its 2020 financial statements. The firm recorded $4,200,000 in depreciation expense instead of record $4,500,000. Altima has a constant tax rate of 40% and reports 3 years of comparative income statements and 2 years of comparative balance sh- in its annual report. Ignoring the income tax effect, what is the correct journal entry to record the prior-period adjustment? O Depreciation expense Accumulated Depreciation O Retained Earnings 300,000 Income Tax Payable Accumulated Depreciation Retained Earnings O Accumulated Depreciation 300,000 Retained Earnings Accumulated Depreciation 300.000 estion 22 300,000 300,000 120.000 180,000 300,000 300,000
The accounting records of Sandhill Inc. show the following data for 2020 (its fırst year of operations). 1. Life insurance expense on officers was $9,000. Equipment was acquired in early January for $321,000. Straight-line depreciation over a 5-year life is used, with no salvage value. For tax purposes, Sandhill used a 30% rate to calculate depreciation. 2. 3. Interest revenue on State of New York bonds totaled $3,800. Product warranties were estimated to be $51,600 in 2020. Actual repair and labor costs related to the warranties in 2020 were $10,100. The remainder is estimated to be paid evenly in 2021 and 2022. 4. 5. Gross profit on an accrual basis was $93,000. For tax purposes, $79,000 was recorded on the installment-sales method. 6. Fines incurred for pollution violations were $4,400. 7. Pretax financial income was $817,800. The tax rate is 30%.
Wool company actual earnings for the first two quarters of 2019 and its estimate during each quarter of its annual earnings are:Actual first quarter earnings $500,000Actual second quarter earnings $500,000First quarter estimate annual earnings $ 2,000,000Second quarter estimate of annual earnings $2,500,000Wool Company estimates its permanent differences between accounting income and taxable income for 2019 as:Environmental violation penalties $50,000Dividend income exclusion $200,000These estimates did not change during the second quarter. The combined state and federal tax rate for wool Company for 2019 is 50%.Required:Calculate first quarter "estimated annual income tax". Select one:a. $2,250,000b. $3,100,000c. $3,000,000d. $1,750,000
Charlotte, Inc. began business on January 1, 2021. Its pretax financial income for the first two years was as follows: 2021 $550,000 2022 590,000 The following items caused the only differences between pretax financial income and taxable income. In 2021, the company terminated a top executive and agreed to 120,000 of severance pay. The amount will be paid $40,000 per year for 2021 - 2023. The 2021 and 2022 payments were made. For financial statement purposes, the $120,000 was expensed in 2021. For tax purposes, the severance pay is deductible as it is paid. In 2021, the company reported depreciation expense in its financial statements of $82,000. Depreciation expense for tax purposes was 134,500. The difference will reverse evenly over the next three years (2022-2024) The tax rate in 2021 is 20% and no tax rate changes have been enacted that affect the years 2022 – 2024. Required: Determine taxable income for 2021…
The reported net incomes for the fırst 2 years of Pina Products, Inc., were as follows: 2021, $133,000; 2022, $184,000. Early in 2023, the following errors were discovered. 1. Depreciation of equipment for 2021 was overstated $18,000. 2. Depreciation of equipment for 2022 was understated $32,500. 3. December 31, 2021, inventory was understated $55,000. 4. December 31, 2022, inventory was overstated $14,200. Prepare the correcting entry necessary when these errors are discovered. Assume that the books for 2022 are closed. (Ignore income tax considerations.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit
In the company’s interim income statement for the six months ended June 30, 2020, what total amount of expense relating to these items should be reported? Round UP your FINAL answers up to two decimal places.
In 2021, Heartfin Farms reported a pretax accounting loss of $196 million. During the year, the company paid a fee of $4 million due to a fine from the Food and Drug Administration. The company accrued an expense for estimated paid future absences of $30 million relating to the company’s employee vacation program. The amounts owed will be paid equally over the next two years ($15 million in 2022 and $15 million in 2023). The enacted tax rate is 25%. There were no temporary differences at the beginning of the year and none originating in 2021 other than those described above. In the prior two years, Hinton Farms reported taxable income of $64 million in 2020 and $88 million in 2019. What is Heartfin Farms' net operating loss carryforward in 2021? A. $10 million B. $162 million C. $30 million D. $152 million
Fore Farms reported a pretax operating loss of $150 million for financial reporting purposes in 2021. Contributing to the loss were (a) a penalty of $10 million assessed by the Environmental Protection Agency for violation of a federal law and paid in 2021 and (b) an estimated loss of $20 million from accruing a loss contingency. The loss will be tax deductible when paid in 2022. The enacted tax rate is 25%. There were no temporary differences at the beginning of the year and none originating in 2021 other than those described above. Required:1. Prepare the journal entry to recognize the income tax benefit of the net operating loss in 2021.2. What is the net operating loss reported in 2021 income statement?3. Prepare the journal entry to record income taxes in 2022 assuming pretax accounting income is $155 million. No additional temporary differences originate in 2022.
The following accounts are extracted from the worksheet of X Company on December 31, 2020: Income frem eentinuing operations after taxes: $2,000,000 • During the year, the company suffered from abnonmal and infrequent hurricane damages that had resulted in a $60,000 pretax loss During the yeaI also, the company stopped the activities of its REW segment which had resulted in a pretax operating loss of S100,000 and a net of tax loss on di sposal $20,000 Tax Rate was 30%
please dont provide answer in image format thak you
On March 1, 2021, Special Company paid P500,000 for the calendar year'sproperty taxes. Advertising costs of P1,000,000 and paid P300,000 inunanticipated ordinary repairs to machinery were also incurred on March 31, 2021. What total amount of these expenses should be reported in the quarterly income statement ending June 30, 2021?