What amount will be disclosed on the company's notes to financial statements?
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Mira Company was authorized by their board of directors to issue their financial statements on April 1, 2021 which shows a profit before tax for the year ended December 31, 2020 at P 9,500,000. A fire occurred at one of their sites on February 15, 2021 with damages amounting to a total of 6,000,000. It was covered with an insurance but only at P 4,000,000. The said amount can only be collected on May 1, 2021 when repairs will be paid. What amount will be disclosed on the company's notes to financial statements?
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- Duck, an accrual basis corporation, sponsored a rock concert on December 29, 2019. Gross receipts were 300,000. The following expenses were incurred and paid as indicated: Because the coliseum was not scheduled to be used again until January 15, the company with which Duck had contracted did not perform the cleanup until January 810, 2020. a. Calculate Ducks net income from the concert for tax purposes for 2019. b. Using the present value tables in Appendix H, what is the true cost to Duck if it had to defer the 100,000 deduction for the performers until 2020? Assume a 5% discount rate and a 21% marginal tax rate in 2019 and 2020.Alain company prepared draft financial statements that showed the income before tax for the year ended December 31, 2021 at P6,000,000. The board of directors authorized the financial statements for issue on March 20,2022. A manufacturing plant was destroyed by fire on January 15, 2022 resulting in a financial loss of P2,500,000. Insurance for the property amounted to P4,000,000 and the claim was received on February 14, 2022. Repairs will start on April 2022. What amount should be reported as profit before tax in the financial statements? * 2500000 9000000 4000000 6000000 What total amount should be recognized in profit or loss of Sushi Inc. for the year ended December 31,2021 to reflect non adjusting events? * 4500000 3000000 2500000 1500000Alain company prepared draft financial statements that showed the income before tax for the year ended December 31, 2021 at P6,000,000. The board of directors authorized the financial statements for issue on March 20,2022. A manufacturing plant was destroyed by fire on January 15, 2022 resulting in a financial loss of P2,500,000. Insurance for the property amounted to P4,000,000 and the claim was received on February 14, 2022. Repairs will start on April 2022. What amount should be reported as profit before tax in the financial statements? 2500000 9000000 4000000 6000000
- Alain company prepared draft financial statements that showed the income before tax for the year ended December 31, 2021 at P6,000,000. The board of directors authorized the financial statements for issue on March 20,2022. A manufacturing plant was destroyed by fire on January 15, 2022 resulting in a financial loss of P2,500,000. Insurance for the property amounted to P4,000,000 and the claim was received on February 14, 2022. Repairs will start on April 2022. What amount should be reported as profit before tax in the financial statements? PROVIDE SOLUTION A. 2500000 B. 9000000 C. 4000000 D. 6000000On Nov. 25, 2017, an explosion occurred at Stefan company causing extensive property damage to area buildings. By March 10, 2018, claims had been asserted against the entity. The management and counsel concluded that it is probable that the entity would be responsible for damages, and that 3,500,000 is a reasonable estimate of the liability. Stefan’s 10,000,000 comprehensive public policy has a 500,000 deductible clause. The financial statements were issued on March 31, 2018. What amount of liability from lawsuit should be reported on December 31, 2017?In 2021, Crane Company accrued, for financial statement reporting, estimated losses on disposal of unused plant facilities of $3710000. The facilities were sold in March 2022 and a $3710000 loss was recognized for tax purposes. Also in 2021, Crane paid $163200 in premiums for a two-year life insurance policy in which the company was the beneficiary. Assuming that the enacted tax rate is 20% in both 2021 and 2022, and that Crane paid $1280000 in income taxes in 2021, the amount reported as net deferred income taxes on Crane's balance sheet at December 31, 2021, should be a $371000 liability. $742000 asset. $1116800 asset. $371000 asset.
- On November 5, 2020, a Dunn Company truck was in an accident with an auto driven by Bell. The entity received notice on January 12, 2021 of a lawsuit for P700,000 damages for personal injuries suffered by Bell. The entity's counsel believed it is probable that Bell will be awarded an estimated amount in the range between P200,000 and P500,000. The possible outcomes are equally likely. The accounting year ends on December 31 and the 2020 financial statements were issued on March 31, 2021. What amount of provision should be accrued on December 31, 2020?At the end of its first year of operations on December 31, 2022, the Metro Company reported pretax financial income of $100,000. An investigation of that income revealed the following items:· Bad debts expense of $12,000 was recognized (reported on 2022 income statement). The accounts will be written off (tax deductible) in 2023.· Interest received on municipal bonds: $7,500.· Warranty expenses of $16,000 were accrued for financial reporting purposes, but were not expected to result in a cash payment until 2023.· Depreciation on the tax return exceeded depreciation for financial reporting purposes by $32,000.Assume that any deferred tax assets are considered more likely than not to be realized. The enacted income tax rate for all years is 25%.Required:1) Compute taxable income. Show your calculation. If not, no credit.2) Prepare the entry to record income tax expense and any related assets and liabilities for Metro on December 31, 2022.You are provided the following transactions which occurred during the tax year which 31 December 2022 for Serowe Ltd. The company disposed some of its Heavy Plant and Machinery that it had bought on 30 November 2020 for P1,200,000. The company received P350,000. Serowe Ltd bought new Plant and Machinery to replace the disposed ones for P3,200,000. Assume that the company elects to apply rollover relief, calculate the capital allowances on the new plant and machinery for the current tax year.
- A company's trial balance at 31 December 2021 shows a debit balance of GHS700,000 on current tax and a credit balance of GHS8,400,000 on deferred The directors have estimated the provision for income tax for the year at GHS4.5m and the required deferred tax provision is GHS5.6m, GHS1.2m of which relates to a property revaluation. What is the profit or loss income tax charge for the year ended 31 December 2021?Howard Property and Casualty Insurance Corporation reported a net operating loss of $160,000 for financial reporting and tax purposes in 2019. The enacted tax rate is 25%. Taxable income, tax rates, and income taxes paid in Howard's first two years of operation were as follows: 12017: 80,000 40% 2018: 20,000 25% Assume NOL is allowed to carry back for two years, the amount of net loss reported on the income statement for the year ended December 31, 2019 would be: (114,000) (96,000) (120,000) (108,000)Windsor Inc. reported income from continuing operations before taxes during 2020 of $816,500. Additional transactions occurring in 2020 but not considered in the $816,500 are as follows. 1. 2. 3. 4. 5. 6. The corporation experienced an uninsured flood loss in the amount of $90,600 during the year. At the beginning of 2018, the corporation purchased a machine for $61,200 (salvage value of $10,200) that had a useful life of 6 years. The bookkeeper used straight-line depreciation for 2018, 2019, and 2020, but failed to deduct the salvage value in computing the depreciation base. Sale of securities held as a part of its portfolio resulted in a loss of $59,800 (pretax). When its president died, the corporation realized $136,400 from an insurance policy. The cash surrender value of this policy had been carried on the books as an investment in the amount of $48,930 (the gain is nontaxable). The corporation disposed of its recreational division at a loss of $113,710 before taxes. Assume that…