Requir[The following information applies to the questions displayed below.]Virginia Corporation is a calendar-year corporation. At the beginning of 2023, its election to be taxed as an S corporationbecame effective. Virginia Corporation's balance sheet at the end of 2022 reflected the following assets (it did not haveany earnings and profits from its prior years as a C corporation).AssetCashAccounts receivableAdjustedBasis$ 20,00040,00090,000150,000FMV$ 20,00040,000200,000175,000InventoryLandTotals$ 300,000$ 435,000In 2023, Virginia Corporation reported business income of $50,000 (this would have been its taxable income if it were stilla C corporation).What is Virginia's built-in gains tax in each of the following alternative scenarios?a. During 2023, Virginia Corporation sold inventory it owned at the beginning of the year for $100,000. The basis of the inventory soldwas $55,000.

Inventory refers to the palpable goods, raw accoutrements , work- in- progress, or finished…

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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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Tommy Corporation reported a pretax financial income of P5,000,000 for the year ended December 31, 2019. The following items are included in the determination of the financial income: Provision for litigation loss which will become tax deductible when settled in the future, P300,000; Realized revenue that has yet to be received, P400,000; Other unearned revenue, P150,000; Dividend received from a domestic corporation, P100,000. If the tax rate is 32% for all years, what amount if total tax expense and current tax expense should Tommy report, respectively?
In the year 2021, a corporation made $20.4 Million in revenue, $2.1 Million of operating expenses, and depreciation expenses of $6.4 Million. The state income tax rate is 12% and the federal income tax rate is 21%. How much (a) state income tax, and (b) federal income tax will this corporation pay in this tax year? Assume that the state income tax is a tax-deductable expence when filing federal income tax. The approximate state income tax is $ Million (Round to three decimal places.) The approximate federal tax is $ Million. (Round to three decimal places.) The combined effective income tax rate is%. (Round to the nearest decimal.) The ATCF for the year 2021 is $ Million. (Round to three decimal places.)
The following information relates to the operations of Sadaam Ltd. for the taxation year ended December 31, 2019 (all amounts are based on the relevant tax rules): Net Business Loss 212,700 Dividends From Taxable Canadian Corporations 50,250 Taxable Capital Gains 14,400 Allowable Capital Losses 6,638 Charitable Donations 8,100 At the beginning of the taxation year, the Company had a carry forward of unused charitable donations of $1,975 from the previous year, and a net capital loss carry forward of $14,500 [(1/2)($29,000)]. It is the policy of the Company to minimize net capital loss balances prior to using any other type of carry over balance. Required: Calculate the corporation's minimum Net Income For Tax Purposes and Taxable Income for its 2019 taxation year. Indicate any balances available for carry forward to subsequent years.
Analysis of the assets and liabilities of Someday Corporation on December 31, 2019 disclosed assets with a tax basis of P1,000,000 and a book basis of P1,300,000. There was no difference in the liability basis. The difference in asset basis arose from temporary difference that would reverse in the following years: 2020 - P80,000 2021 - 70,000 2022 - 72,0002023 - 40,0002024 - 38,000 1. The enacted tax rates are 30% for the years 2019 – 2022 and 32% for the years 2023 – 2024. What is the total deferred tax liability at December 31, 2019?
For each of the following cases, determine the amount of capital gain or loss to report in each year (after taking into account any applicable carrybacks) and the capital loss carryforward to 2022, if any. Corporation 2016 A $ 4,450 5,050 7,860 (55,490) B C D Corporation A B C D 2016 Assume that 2016 is the first year of operation for each corporation. Note: Do not leave cells blank, enter "0" if there is no effect. $ $ 5,050 $ 7,860 $ Capital gain or loss for year indicated 2017 2018 2020 2019 $ 5,960 $ 3,600 6,950 (28,000) 2,070 (31,470) 13,600 11,050 0 $ 9, 150 3,740 13,750 7,150 X $ $ 2017 $ 9,150 $ $ > Answer is complete but not entirely correct. Carried forward Reported capital gains (11,950) 3,570 (3,160) 3,280 2018 C $ $ 2019 $ $ 0 $ 0 $ 5,960 0 $ $ 2020 $ 3,600 $ $ 0 $ 2021 $ 0 $ $ $ $ 0 $ 0 $ $ (1,560) 2,090 12,350 2,710 2021 $ capital losses 2022 5,050X 7,860X
Saxon Company is a CCPC that began operations on January 1, 2019. It has adopted a December 31 year end. During 2019, the Company received eligible dividends of $45,000 and designated $40,000 of the dividends it paid as eligible. On December 31, 2019, the balance in the Company's GRIP account was $45,000. For 2020, Saxon has Taxable Income of $726,000. Included in this amount is $18,000 of interest income, taxable capital gains of $22,000, and the deduction of a net capital loss of $18,000. Also during that year, the Company received eligible dividends of $36,000. In determining the 2020 Tax Payable, the Company has a small business deduction of $66,500. During 2020, Saxon pays dividends of $48,000, with $21,000 of this amount being designated as eligible. Required: Determine the Company's GRIP balance at the end of 2020.
73. Black Company which began operations on January 1, 2018, has elected to use cash basis accounting for tax purposes and accrual basis accounting for the financial statements. The entity reported sales of P1,750,000 and P800,000 in the tax returns for the years ended December 31, 2019 and 2018,respectively. The entity reported accounts receivable of P300,000 and P500,000 in the statement of financial position on December 31, 2019 ad 2018. respectively. What amount should be reported as aisles in the income statement for the year ended December 31, 2019? a. 1,450,000 b. 1,550,000 c. 1,950,000 d. 2,050,000
Income Tax Rates-Corporations Taxable Income Over- $ 0 50,000 75,000 100,000 335,000 10,000,000 15,000,000 18,333,333 But not Over- $ 50,000 75,000 100,000 335,000 10,000,000 15,000,000 18,333,333 The Tax Is: $ 15% 7,500 + 25% 13,750 + 34% 22,250 + 39% 113,900 + 34% 3,400,000+ 35% 5,150,000+ 38% 35% $ Of the Amount Over- 0 50,000 75,000 100,000 335,000 10,000,000 15,000,000 0
Concord Corporation had income before income taxes of $205,200 in 2020. Concord’s current income tax expense is $49,700, and deferred income tax expense is $29,700.Prepare Concord’s 2020 income statement, beginning with "Income before income taxes". (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Concord CorporationIncome Statement (Partial) $ $ $
During 2021, Palm Corporation reported pretax book income of $675,000. Tax depreciation exceeded book depreciation by $45,000. In addition, the company received $10,000 of life insurance proceeds from the death of an officer. The company expensed $22,000 of stock compensation for financial purposes; however, there were no exercises during the year. Compute Palm Corporation's current income tax expense or benefit, and record the corresponding journal entry to record the current income tax provision.
Explain when an accounting period starts for corporation tax purposes. 3.2 - Using all the relevant information provided above, calculate Harrogate Chocolate Ltd taxable total profit for the six months ended 31 March 2023. 3.3 - Calculate the corporation tax payable by Harrogate Chocolate Ltd assuming the maximum group relief is surrendered from Suggar Ltd to Harrogate Chocolate Ltd. 3.4 - State the dates on which Harrogate is required to file the CT 600 corporation tax return for the six months period to 31 March 2023 and when any tax payment(s) will be due for the period.
St. George, Incorporated reported $711,800 net income before tax on this year’sfinancial statement prepared in accordance with GAAP. The corporation’s recordsreveal the following information:Four years ago, St. George realized a $283,400 gain on the sale of investmentproperty and elected the installment sale method to report the sale for taxpurposes. Its gross profit percentage is 50.12, and it collected $62,000 principaland $14,680 interest on the installment note this year.Five years ago, St. George purchased investment property for $465,000 cash froman LLC. Because St. George and the LLC were related parties, the LLC’s $12,700realized loss on the sale was disallowed for tax purposes. This year, St. George soldthe property to an unrelated purchaser for $500,000.A flood destroyed several antique carpets that decorated the floors of corporateheadquarters. Unfortunately, St. George’s property insurance does not coverdamage caused by rising water, so the loss was uninsured. The carpets’…

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