What is the corporate income tax liability at December 31, 2020?
Q: what is the possible tax implication?
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A: Part 1:
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Q: At the beginning of 2021, a company had future deductible amounts of $400,000 and the enacted tax…
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Irving, Inc. pays its general manager an annual bonus of 6% of profit after deduction for both bonus and corporate income tax. For the year 2020, the company realized profit of ₱10,800,000 before said deductions. The income tax rate is 30%. What is the corporate income tax liability at December 31, 2020?
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- Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and the amount of federal income tax withholding are as follows. Lemurs payroll deductions include FICA Social Security at 6.2%, FICA Medicare at 1.45%, FUTA at 0.6%, SUTA at 5.4%, federal income tax as previously shown, state income tax at 5% of gross pay, and 401(k) employee contributions at 2% of gross pay. Record the entry for the employee payroll on December 31.Rhodes Corporations financial statements are shown after part f. Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions. a. What is the net operating profit after taxes (NOPAT) for 2020? b. What are the amounts of net operating working capital for both years? c. What are the amounts of total net operating capital for both years? d. What is the free cash flow for 2020? e. What is the ROIC for 2020? f. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.) Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)Suppose that Blake Companys total pretax difference from a change to FIFO was 100,000 and the company pays a bonus of 5% of its income before income taxes and bonus to employees. If Blake pays an additional bonus | based on the change in income, would it recognize any expense? If so, when and how much?
- In 2020, Garner Grocers had taxable income of -$2,000,000. The corporate tax rate is 25%. Assume that the company takes full advantage of the Tax Code's carry-forward provision. In 2021, Garner has taxable income of $1,000,000. What is the amount of taxes the company paid in 2021? O a. $500,000 Ob. $750,000 O c. $1,500,000 O d. $0 O e. $250,000At the beginning of 2021, a company had future deductible amounts of $400,000 and the enacted tax rate was 27%. In October 2021, a new income tax act is signed into law that lowers the tax rate to 20% for 2022 and future years. To record the change, the company will (enter 1, 2, 3, or 4 that represents the correct answer): Credit Income Tax Expense by $28,000. Debit Income Tax Expense by $28,000. Credit Deferred Tax Liability by $28,000. Debit Deferred Tax Asset by $28,000.Orlando Company has a contract with its CEO to pay him a bonus during each of the years 2021 – 2024. The profit before deductions for bonus and income taxes were P14,500,000 in 2021; P18,000,000 in 2022; P22,500,000 in 2023; and P25,000,000 in 2024. The bonus of 25% is deductible for tax purposes in each year. The tax rate is 20%. Compute the amount of the bonus for 2021 if the bonus is based on profit bonus and taxes. 2.Knicks Company requires nonrefundable advance payments with special orders from customers for machinery constructed to their specifications. Information for 2023 follows: Customers advances, 12/31/22 P 500,000 Advances received with orders in 2023 840,000 Advances applied to orders shipped in 2023 600,000 Advances applicable to orders canceled in 2023 190,000 How much is the ending balance of advances on December 31, 2023?
- Orlando Company has a contract with its CEO to pay him a bonus during each of the years 2021 – 2024. The profit before deductions for bonus and income taxes were P14,500,000 in 2021; P18,000,000 in 2022; P22,500,000 in 2023; and P25,000,000 in 2024. The bonus of 25% is deductible for tax purposes in each year. The tax rate is 20%. The 2022 bonus is based on profit after bonus but before taxes. Compute the amount of the bonus for 2022. 2. Orlando Company has a contract with its CEO to pay him a bonus during each of the years 2021 – 2024. The profit before deductions for bonus and income taxes were P14,500,000 in 2021; P18,000,000 in 2022; P22,500,000 in 2023; and P25,000,000 in 2024. The bonus of 25% is deductible for tax purposes in each year. The tax rate is 20%. The 2024 bonus is based on profit after bonus and taxes Compute the amount of the bonus for 2024 3. Wizards Company sold 4,100,000 boxes of apple pie mix. Each box contains one coupon, in which 10 coupons, with P5…Allmond Corporation, organized on January 3, 2021, had pretax accounting income of $16 million and taxable income of $22 million for the year ended December 31, 2021. The 2021 tax rate is 25%. The only difference between accounting income and taxable Income is estimated product warranty costs. Assume that expected payments and scheduled tax rates (based on recently enacted tax legislation) are as follows: 2022 2023 2024 2025 $1 million 30 30 2 nillion 2 nillion 1 million 30t 20 Required: 1. Determine the amounts necessary to record Allmond's income taxes for 2021 and prepare the appropriate journal entry. 2. What is Allmond's 2021 net income? Complete this question by entering your answers in the tabs below. Required Required 1 GJ Required 2 Calculation Determine the amounts necessary to record Allmond's income taxes for 2021. (Enter your answers in millions rounded to 2 decimal places (1.e., S,500,000 should be entered as 5.50). Enter all amounts as positive values.) ($ In millions)…JIMIN Company has an agreement to pay the executive officers a bonus of 5% of the entity’s earnings. The income for the year before bonus and tax is ₱8,750,000. The income tax rate is 30% of income after bonus. Determine the BONUS under each of the following independent assumptions: A. Bonus is based on income before bonus and before tax.B. Bonus is based on income after bonus and after-tax.
- Allmond Corporation, organized on January 3, 2021, had pretax accounting income of $29 million and taxable income of $42 million for the year ended December 31, 2021. The 2021 tax rate is 25%. The only difference between accounting income and taxable income is estimated product warranty costs. Assume that expected payments and scheduled tax rates (based on recently enacted tax legislation) are as follows: 2022 $4 million 3 million 2023 2024 2025 4 million 2 million Required: 1. Determine the amounts necessary to record Allmond's income taxes for 2021 and prepare the appropriate journal entry. 2. What is Allmond's 2021 net Income? 30% 30% 30% 25% Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 GJ Required 2 What is Allmond's 2021 net income? (Enter your answer in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).) Net income millionShenron, Inc. had pre-tax accounting income of P1,350,000 and a tax rate of 40% in 2020, its first year of operations. During 2020 the company had the following transactions: Received rent from Master, Co. for 2021 P48,000 Municipal bond income P60,000 Depreciation for tax purposes in excess of book depreciation P30,000 Installment sales revenue to be collected in 2021 P81,000 For 2020 what is the amount of income taxes payable for Shenron, Inc? a. P579,600 b. P452,400 c. P514,800 d. P490,8001. What amount should Tokwa't Baboy Company report in its 2020 income statement as total provision for income tax? Assume a 30% tax rate.
