Need help with this accounting question The owner's equity in a business amounted to $52,000at the beginning of the year and $100,000 at the end ofthe year. The owner had made no additionalinvestments and had withdrawn $19,000 during theyear. The net income for the year amounted toA) $171,000.B) $48,000.C) $81,000.D) $67,000.

Step 1: Define Owner's CapitalOwner's capital refers to the amount invested by the owner in the…

Answered: The owner's equity in a business…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 34P

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During the year, Irv had the following transactions: Long-term loss on the sale of business use equipment $7,000 Long-term loss on the sale of personal use camper 6,000 Long-term gain on the sale of personal use boat 3,000 Short-term loss on the sale of stock investment 4,000 Long-term loss on the sale of land investment 5,000 How are these transactions handled for income tax purposes?
Compute for the gross income under accrual basis.
In the current year, Madison Corporation had 50,000 of taxable income at a tax rate of 25%. During the year, Madison began offering warranties on its products and has a Warranty liability for financial reporting purposes of 5,000 at the end of the year. Warranty expenses are not deductible until paid for income tax purposes. Prepare the journal entry to record Madisons income taxes at the end of the year.
Goldfinger Corporation had account balances at the end of the currentyear as follows: sales revenue, $29,000; cost of goods sold, $12,000;operating expenses, $6,200; and income tax expense, $4,320. Assumeshareholders owned 4,000 shares of Gold finger's common stock duringthe year. Prepare Goldfinger's income statement for the current year.
Katt Co. began operations two years ago (Year 1) and recognized $37,000 in business income and $1,000 in taxable capital gains that year. Last year (Year 2) the company incurred a business loss of $25,000, a taxable capital gain of $2,000, and an allowable capital loss of $5,000. During the current year (Year 3) business income was $50,000, taxable capital gains were $4,000, and the company received $10,000 in dividends from a taxable Canadian corporation. Katt Co. utilizes any unused losses in the earliest years possible, Which of the following taxable incomes are correct after all carry-over adjustments have been made? Select one or more: a. Year 1: $13,000; Year 2: $0; Year 3: $61,000 b. Year 1: $12,000; Year 2: $0; Year 3: $52,000 O c. Year 1: $38,000; Year 2: ($28,000); Year 3: $64,000
Show your work At the beginning of the year, Teal Corporation had accumulated E & P of $210,000. On March 30, Teal sold an asset at a loss of $200,000. For the calendar year, Teal incurred a deficit in current E & P of $305,000, which includes the $200,000 loss on the sale of the asset. If Teal made a distribution of $50,000 to its sole shareholder on April 1 and the shareholder had a basis in her stock of $72,000, how will the shareholder be taxed?
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Ross Company is a C corporation providing property management services. Ross has used the cash method since inception because its gross receipts did not exceed $26,000,000. This year its average annual gross receipts for the prior three years crossed the $26,000,000 mark, requiring Ross to change from the cash method to the accrual method (per § 448). At the end of its prior year, Ross had accounts receivable of $850,000 and accounts payable of $540,000. a.Compute and explain the adjustment to taxable income that Ross must make due to the change in accounting method. b.When must Ross include this adjustment in its income?
16.On 12/31/2019, Meet People, LLC, reported a $64,000 loss on its books. The items included in the loss computation were $20,000 in sales revenue, $12,000 in qualified dividends, $14,000 in cost of goods sold, $35,000 in charitable contributions, $33,000 in employee wages, and $14,000 of rent expense. How much ordinary business income (loss) will Meet People report on its 2019 return? Show computation.
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1) Rover Co. began operations two years ago (Year 1) and recognized $37,000 in business income and $1,000 in taxable capital gains that year. Last year (Year 2) the company incurred a business loss of $25,000, a taxable capital gain of $2,000, and an allowable capital loss of $5,000. During the current year (Year 3) business income was $50,000, taxable capital gains were $4,000, and the company received $10,000 in dividends from a taxable Canadian corporation. Rover Co. utilizes any unused losses in the earliest years possible. Required: What is the taxable income after all carry-over adjustments have been made?

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The owner's equity in a business amounted to $52,000 at the beginning of the year and $100,000 at the end of the year. The owner had made no additional investments and had withdrawn $19,000 during the year. The net income for the year amounted to A) $171,000. B) $48,000. C) $81,000. D) $67,000.