Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2023, it reported financial statement income aftertaxes of $1,572,350. Timpanogos provided the following information relating to its activities for the year:Life insurance proceeds as a result of CEO's deathRevenue from sales (for both book and tax purposes)Premiums paid on the key-person life insurance policies. The policies have no cash surrender value.Charitable contributionsCost of goods sold for book and tax purposesInterest income on tax-exempt bondsInterest paid on loan obtained to purchase tax-exempt bondsRental income payments received and earned in 2023Rental income payments received in 2022 but earned in 2023Rental income payments received in 2023 but not earned by year-endTax depreciationBook DepreciationNet capital lossFederal income tax expense for booksRequired:$ 234,0002,340,00024,400210,600351,000a. Reconcile book income to taxable income for Timpanogos Incorporated. Be sure to start with book income and identify all of theadjustments necessary to arrive at taxable income.46,80052,65018,40011,70035,10063,50028,40048,800362,700

Workings ItemTaxableBook-Tax DifferenceExplanation1.Life Insurance Proceeds as a Result of CEO's…

Answered: Timpanogos Incorporated is an…

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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The Dakota Corporation had a 2021 taxable income of $20,000,000 from operations after all operating costs but before (1) interest charges of $3,800,000, (2) dividends received of $320,000, (3) dividends paid of $2,200,000, and (4) income taxes (the firm’s tax rate is 21 percent).a. Calculate Dakota’s income tax liability. (Round your answer to the nearest dollar amount.) With a marginal and average tax rate of 21% The income tax liability is NOT 3,469,200
Slime Corp. maintains its accounting records on the cash basis but restates it financial statements to accrual basis. Iniwan had P600,000 in cash basis pre-tax income for 2020. The following information pertains to Iniwan’s operations for the year ended December 31, 2019 and 2020: Accounts receivable: 2020- P400,000; 2019- P200,000 Accounts payable: 2020- P150,000; 2019- P300,000 Under accrual method, what is the income before taxes should Slime report in its December 31, 2020?
Mota Corporation maintains a tax-qualified, funded, noncontributory defined benefit retirement plan covering substantially all of its permanent employees. The benefits are based on years of service and compensation during the latest year of employment. A retirement valuation was made as at each financial yearend. The defined benefit retirement plan meets the minimum retirement benefit specified under Republic Act (RA) No. 7641, Retirement Pay Law. The following information has been provided to you in relation to your financial statement disclosure review of Nishida Corporation: Based on the information above, answer the following: What is the balance of the net retirement liability (asset) on December 31, 2019? What is the retirement expense in the income statement for the year ended December 31, 2020? What is the remeasurement loss (gain) in other comprehensive income for the year ended December 31, 2020 in relation to its defined benefit plan?
2. Mr Asta, domestic corporation, revealed the following data for 2019: Gross income from business is P 800,000 Business expenses allowed for deduction is P 600,000 (excluding contributions) Charitable contributions: To Govt for priority activities of P 50,000 To Govt for public purposes (not priority) of P 60,000 To church of P 15,000 What is the taxable net income?
Mr. Fara, a representative of a domestic firm, disclosed the following information for 2019:The total revenue from the business is P 800,000.The maximum amount of business costs that can be deducted is P 600,000. (excluding contributions)Contributions to charity: P50,000 to the government for key activitiesP 60,000 to the government for public use (non-priority).15,000 pesos to the church What is the net income that is taxable?
Iniwan Corp. maintains its accounting records on the cash basis but restates it financial statements to accrual basis. Iniwan had P600,000 in cash basis pre-tax income for 2020. The following information pertains to Iniwan's operations for the year ended December 31, 2019 and 2020: Accounts receivable: 2020- P400,000; 2019- P200,000 Accounts payable: 2020- P150,000; 2019- P300,000 Under accrual method, what is the income before taxes should Iniwan report in its December 31, 2020? *
Heron Corporation, a calendar year, accrual basis taxpayer, provides the following information for this year and asks you to prepare Schedule M-1. Net income per books (after-tax) $239,700 Taxable income 195,000 Federal income tax liability 59,300 Interest income from tax-exempt bonds 5,000 Interest paid on loan incurred to purchase tax- 2,000 exempt bonds Life insurance proceeds received as a result of 100,000 death of Heron's president Premiums paid on policy on life of Heron's 4,500 president Excess of capital losses over capital gains 2,000 Retained earnings at beginning of year 375,000 Cash dividends paid 90,000 Tax depreciation in excess of book 7,500 depreciation
Accounting AA Corporation is a C corporation. In 2017, sales are $500,000; cost and expenses are $420,000, which includes charitable contribution of $10,000; 2016 NOL carry forward is $5,000; 2016 carry forward undeducted charitable contribution is $3,000. What is the deductible charitable contribution in 2017? What charitable contribution is carried forward to 2018? If in 2017 charitable contribution is $4,000, others are same, What is the deductible charitable contribution in 2017? What charitable contribution is carried forward to 2018?
In the current year, Axle, Inc., a calendar year C corporation, has $6,000,000 of adjusted taxable income, $300,000 of business interest income, zero floor plan financing interest, and $2,900,000 of business interest expense. Axle has average gross receipts for the prior three-year period of $32,000,000. What is Axle's interest deduction for the year? Answer:
Jim Ltd.'s accounting income and taxable income information for the 2021 fiscal year is set out below. Jim Ltd. is a public company. Net Income (accounting pre-tax) Dividends received (accounting) Capital Gains realized (accounting) Meals & Entertainment deducted (accounting) Golf Club Dues deducted (accounting) Political Contributions deducted (accounting) Depreciation deducted (accounting) Capital Cost Allowance deducted (taxation) Bad debt expense (accounting) Bad debts expense (taxation) $ 920,000 404,000 472,000 120,000 80,000 20,000 200,000 290,000 185,000 135,000 REQUIRED: Determine Jim Ltd.'s taxable income for the 2021 fiscal year.
Lakeview, a calendar year C corporation, reports the following income and expenses in the current year: Income from operations $400,000 Expenses from operations $280,000 Dividends received (10% ownership) $30,000 On July 15t of the year, Lakeview made a cash contribution to a qualified charitable organization of $25,000 in cash (not included in any of the above items). What is Lakeview's charitable contribution deduction for the year? Answer: $ . The charitable contribution deduction for corporations is limited to 10% of their taxable income for the year computed without regard to the charitable contribution deduction, net operating loss or capital loss carrybacks, and dividends received deduction. In this course, we are not applying the changes under the CARES Act.
The Dakota Corporation had a 2021 taxable income of $21,000,000 from operations after all operating costs but before (1) interest charges of $3,900,000, (2) dividends received of $330,000. (3) dividends paid of $2,250,000, and (4) income taxes (the firm's tax rate is 21 percent). a. Calculate Dakota's income tax liability. (Round your answer to the nearest dollar amount.) Income tax liability I

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