What is the amount of net income after tax that Vignette Company should report for the year 2021?
What is the amount of net income after tax that Vignette Company should report for the year 2021?
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 45P
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Question
What is the amount of net income after tax that Vignette Company should
report for the year 2021?
![Vignette Construction Company changed from completed contract method to the percentage
of completion method of accounting for long-term construction contracts during 2021. For tax
purposes, the company employs the completed contract method and will continue this
approach in the future.
The appropriate information related to this change is as follows:
Pre-tax Income from
2020
2021
Percentage of Completion
2,028,000
1,820,000
Completed Contract
1,534,000
1,248,000
Income tax rate is 35%.
What is the amount of net income after tax that Vignette Company should report for the year
2021?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd18262a8-ae9c-4aaa-9a84-42754317b879%2Fd6a5696f-0af1-4f1e-ab2c-0b309b1185eb%2F5pva4gu_processed.png&w=3840&q=75)
Transcribed Image Text:Vignette Construction Company changed from completed contract method to the percentage
of completion method of accounting for long-term construction contracts during 2021. For tax
purposes, the company employs the completed contract method and will continue this
approach in the future.
The appropriate information related to this change is as follows:
Pre-tax Income from
2020
2021
Percentage of Completion
2,028,000
1,820,000
Completed Contract
1,534,000
1,248,000
Income tax rate is 35%.
What is the amount of net income after tax that Vignette Company should report for the year
2021?
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