Financial Account questions please answer it asap The Loquat Corporation has book net income of $50,000 for 2014.Included in this figure are the following items, which are reported on thecorporation's Schedule M-1, Reconciliation of Income (Loss) per Bookswith Income per Return.Calculate Loquat Corporation's taxable income for 2014 based on theinformation given.Federal income tax expense: $7,500Depreciation deducted on the books which is not deductible for taxpurposes: $10,000Deduction for 50 percent of meals and entertainment expense which is notallowed for tax purposes: $4,500Deduction for a tax penalty not allowed for tax purposes: $2,000Tax-exempt interest income included in book income but not in taxincome: $3,000

Step 1: Start with Book Net IncomeLoquat Corporation's book net income for 2014 is: Book…

Answered: The Loquat Corporation has book net…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 47P

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Tamarisk Inc. had pretax financial income of $139,400 in 2025. Included in the computation of that amount is insurance expense of $4,400 which is not deductible for tax purposes. In addition, depreciation for tax purposes exceeds accounting depreciation by $10,000. Prepare Tamarisk's journal entry to record 2025 taxes, assuming a tax rate of 30%. (List all debit entries before credit entries. 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 O for the amounts.) Account Titles and Explanation Debit Credit
Pharoah Co. at the end of 2017, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income Estimated litigation expense Extra depreciation for taxes Taxable income $ 35,50,000 40,55,000 (60,00,000) $ 16,05,000 The estimated litigation expense of $4055000 will be deductible in 2018 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $2000000 in each of the next 3 years. The income tax rate is 40% for all years. Income taxes payable is
Shetland Inc. had pretax financial income of $154,000 in 2017. Included in the computation of that amount is insurance expense of $4,000 which is not deductible for tax purposes. In addition, depreciation for tax purposes exceeds accounting depreciation by $10,000. Prepare Shetland’s journal entry to record 2017 taxes, assuming a tax rate of 45%.
The Loquat Corporation has book net income of $170,200 for the current year. Included in this figure are the following items, which are reported on the corporation's Schedule M-1, Reconciliation of Income (Loss) per Books with Income per Return. Federal income tax expense $25,530 • Depreciation deducted on the books which is not deductible for 34,040 tax purposes • Deduction for 50 percent of meals expense which is not allowed 15,318 for tax purposes Deduction for entertainment not allowed for tax purposes 6,808 • Tax-exempt interest income included in book income but not in 10,212 tax income Calculate Loquat Corporation's taxable income for the current year based on the information given.
Blue Inc. reports the following pretax income (loss) for both book and tax purposes. Pretax Income (Loss) $112,000 Year 2018 2019 2020 2021 93,000 (85,000) 127,000 Tax Rate 20 % 20 % 25 % 25 % The tax rates listed were all enacted by the beginning of 2018.
The Loquat Corporation has book net income of $222,400 for the current year. Included in this figure are the following items, which are reported on the corporation's Schedule M-1, Reconciliation of Income (Loss) per Books with Income per Return. • Federal income tax expense $33,360 • Depreciation deducted on the books which is not deductible for tax purposes 44,480 • Deduction for 50 percent of meals expense which is not allowed for tax purposes 20,016 • Deduction for a tax penalty not allowed for tax purposes 8,896 • Tax-exempt interest income included in book income but not in tax income 13,344 Calculate Loquat Corporation's taxable income for the current year based on the information given.
What is the 2016 net income?
Mathis Co. at the end of 2014, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $ 800,000 Estimated litigation expense 2,000,000 Installment sales (1,600,00) Taxable income $ 1,200,000 The estimated litigation expense of $2,000,000 will be deductible in 2016 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $800,000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $800,000 current and $800,000 noncurrent. The income tax rate is 40% for all years. 3. The deferred tax liability - current to be recognized is a. $240,000 b. $480,000 c. $320,000 4. $640,000
In 2017, Amirante Corporation had pretax financial income of $168,000 and taxable income of $120,000. The difference is due to the use of different depreciation methods for tax and accounting purposes. The effective tax rate is 40%. Compute the amount to be reported as income taxes payable at December 31, 2017.
XYZ Co. at the end of 2018, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income € 750,000 Estimated expenses deductible for taxes when paid 1,200,000 Extra depreciation (1,350,000) Taxable income € 600,000 Estimated warranty expense of €800,000 will be deductible in 2019, €300,000 in 2020, and €100,000 in 2021. The use of the depreciable assets will result in taxable amounts of €450,000 in each of the next three years. Instructions (a) Prepare a table of future taxable and deductible amounts. (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2018, assuming an income tax rate of 40% for all years.
Mathis Co. at the end of 2014, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $ 800,000 Estimated litigation expense 2,000,000 Installment sales (1,600,000) Taxable income $ 1,200,000 The estimated litigation expense of $2,000,000 will be deductible in 2016 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $800,000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $800,000 current and $800,000 noncurrent. The income tax rate is 40% for all years. 2. The deferred tax asset to be recognized is a. $240,000 current b. $240,000 noncurrent c. $800,000 current d. $800,000 noncurrent
Mathis Co. at the end of 2014, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $ 800,000 Estimated litigation expense 2,000,000 Installment sales (1,600,000) Taxable income $ 1,200,000 The estimated litigation expense of $2,000,000 will be deductible in 2016 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $800,000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $800,000 current and $800,000 noncurrent. The income tax rate is 40% for all years. 1. The income tax expense is a. $240,000. b. $320,000 c. $360,000. d. $400,000

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