Northwestern Ocean Lapidary Inc. has been in business since 2015. However, during the2020 pandemic, the company suffered a large net operating loss. See below.Despite a bad 2020, the company expect to turn a profit in 2021 and in subsequentyears. Below you will see the actual taxable income from 2018 to 2021.You will also see the company's expected taxable income from 2022 to 2025.Under current tax laws the company was unable to carry back the NOL in 2020.However, the company applied the NOL CF to offset all taxable income in 2021.Taxable Income20182$144,0002019$252,0002020$(876,000)2021$72,0002022*2$204,0002023*$264,0002024*$312,0002025*2$420,000*ExpectedExisting and future enacted tax rates are as follows:21% in 2018 to 2021,25% in 2022 and 2023,28% in 2024, and32% in 2025 and all years thereafter.What is the DTA the company will report on its 2021 balance sheet that corresponds tothe NOL Carry Foward?227,160353,880212,040212,040None of the numerical choices shown are correct.

Name: Northwestern Ocean Lapidary Inc. has been in business since 2015. How
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Northwestern Ocean Lapidary Inc. has been in business since 2015. However, during the2020 pandemic, the company suffered a large net operating loss. See below.Despite a bad 2020, the company expect to turn a profit in 2021 and in subsequentyears. Be

Deferred tax asset: Deferred tax asset is an item that appeared on the balance sheet of the company…

Answered: What is the DTA the company will report…

Business

Accounting

What is the DTA the company will report on its 2021 balance sheet that corresponds to the NOL Carry Foward? 227,160 353,880 O 212,040 212,040 None of the numerical choices shown are correct.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Suppose the following financial data were reported by 3M Company for 2019 and 2020 (dollars in…

A: 2020 2019 Total current assets 11,450 9,625 Total current liabilities…

Q: Using these data from the comparative balance sheet of Ivanhoe Company, perform horizontal analysis.…

A: A company's financial information from two or more periods is compared in a horizontal examination…

Q: The data listed below are taken from a balance sheet of Trident Corporation at December 31, 2018.…

A: 1.

Q: How can I translate the following balance sheet using the current-noncurrent method and the monetary…

A: Current and Non-Current Method Current Assets - Assets that are expected to be used and sold within…

Q: Pharoah Ltd. purchased a new machine on April 4, 2017, at a cost of $164,000. The company estimated…

A: Lets understand the basics.Depreciation is a reduction in value of asset due to wear and tear,…

Q: Use the table for the question(s) below. Consider the following balance sheet: Luther…

A: Debt to capital ratio present the portion of debt employed in company out of its total capital. It…

Q: Net income was $490,000 in 2020, $460,600 in 2021, and $515,872 in 2022. What is the percentage of…

A: Net income % can be calculated as follows; (Given year's net income -The prior year's net income) /…

Q: Suppose the 2025 adidas financial statements contain the following selected data (in millions).…

A: Financial statements are written reports produced by a company's management that summarize the…

Q: Accounts receivable Inventory Prepaid expenses Long-term investments Equipment Accumulated…

A: The cash flow statement is prepared to record the cash flow from transactions during the period. The…

Q: The 2025 income statement of Wildhorse Corporation included the following items Service Revenue…

A: Sales are made on cash and credit basis. The amount to be collected from sales made on credit basis…

Q: 1. Selected balance sheet items are shown for the Basic Company. Compute the missing amounts for…

A: Accounting equation is the basics and backbone of double entry system of accounting. It is also…

Q: Comparative balance sheets for 2021 and 2020 and a statement of income for 2021 are given below for…

A: METAGROBOLIZE INDUSTRIES Statement of Cash FlowsFor the year ended December 31, 2021($ in…

Q: Bethesda Mining Company reports the following balance sheet information for 2021 and 2022. Prepare…

A: Calculate total assets for each year2021: Total assets = $226,753 (current assets) + $657,647 (net…

Q: The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given…

A: A cash flow statement of cash flows that outlines a company's cash inflows from operations to pay…

Q: The comparative balance sheets for 2021 and 2020 and the income statement for 2021 are given below…

A: Activities under the cash flow statement is classified as: Cash flows from operating activities…

Q: PLEASE SKIP IF YOU ALREADY ANSWERED. I WILL UPVOTE

A: The question is related to Ratio Analysis. 1. Current Ratio is calculated by dividing Current Assets…

Q: Calculate the current ratio and working capital for 3M for 2021 and 2022. (Round current ratio to 2…

A: Current ratio and Working capital are computed; so that, liquidity position of a company could be…

Q: P 2303: FINANCIAL ANALYSIS AND REPORTING SY 2021-2022 (FINAL OUTPUT) ABC INDUSTRIES CONSOLIDATED…

A: Vertical Analysis: Under this method, each line item is listed in the financial statement as a…

Q: (d) Debt to assets ratio. (e) Free cash flow. %24 %24

A: Ratio analysis means that various ratio can be calculated with the given date of the company and…

Q: Consider the following abbreviated financial statements for Parrothead Enterprises: PARROTHEAD…

A: Given:Operating Cash Flow = 547Fixed assets purchased = Changes in NWC = 45

Q: accounts at March 31: Accounts receivable Inventory Prepaid expenses Accounts payable Salaries…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: Use the table for the questions below. Consider the following balance sheets: PharmPic…

A: Total equity of pharm pic =226315 +113158 = 339473 Debt equity ratio of pharm pic = 290000 ÷ 339473…

Q: The financial balances for the Atwood Company and the Franz Company as of December 31, 2020, are…

A: When two or more organizations unite to form one, this is called consolidation. The operating costs…

Q: The current sections of Cheyenne Corp's balance sheets at December 31, 2021 and 2022, are presented…

A: Cash flows from operating activities can be prepared using two methods; Direct and Indirect. It is…

Q: Suppose the following information was taken from the 2022 financial statements of FedEx Corporation,…

A: Accounts receivable turnover [in times] = Credit sales for 2022 / Average net accounts receivable…

Q: Required: 1. Prepare a vertical analysis of the balance sheet data for 2025 and 2024. Express each…

A: VERTICAL ANALYSIS OF BALANCE SHEETVertical analysis is a proportional analysis of financial…

Q: Uptodate Projects Ltd has approached you to analyse and interpret their financial statements. The…

A: Financial statements are the reports that are being prepared for the purpose of depicting the…

Q: What would be a classified balance sheet as of December 31, 2021 for this problem?

A: Balance sheet is the financial statement that records all the assets, liabilities and stockholders'…

Q: Here is financial information for Concord Inc. Current assets Plant assets (net) Current liabilities…

A: Horizontal Analysis Is One Of The Important Analysis Techniques For Financial Statements Of The…

Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

Topic Video

Question

100%

Northwestern Ocean Lapidary Inc. has been in business since 2015. However, during the
2020 pandemic, the company suffered a large net operating loss. See below.
Despite a bad 2020, the company expect to turn a profit in 2021 and in subsequent
years. Below you will see the actual taxable income from 2018 to 2021.
You will also see the company's expected taxable income from 2022 to 2025.
Under current tax laws the company was unable to carry back the NOL in 2020.
However, the company applied the NOL CF to offset all taxable income in 2021.
Taxable Income
2018
2$
144,000
2019
$
252,000
2020
$
(876,000)
2021
$
72,000
2022*
2$
204,000
2023*
$
264,000
2024*
$
312,000
2025*
2$
420,000
*Expected
Existing and future enacted tax rates are as follows:
21% in 2018 to 2021,
25% in 2022 and 2023,
28% in 2024, and
32% in 2025 and all years thereafter.
What is the DTA the company will report on its 2021 balance sheet that corresponds to
the NOL Carry Foward?
227,160
353,880
212,040
212,040
None of the numerical choices shown are correct.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Bethesda Mining Company reports the following balance sheet information for 2021 and 2022. Prepare the 2021 and 2022 common-size balance sheets for Bethesda Mining. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. BETHESDA MINING COMPANY Balance Sheets as of December 31, 2021 and 2022 2021 % Assets Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings Total Total liabilities and owners' equity $ 58,042 63,781 120,205 $ 242,028 $ 658,447 $ 900,475 $ 188,422 83,520 $ 271,942 $ 234,000 $ 221,000 173,533 $ 394,533 $ 900,475 2022 % $ 73,306 84,139 % % 185,490 %$ 342,935 %$589,828 % $932,763 % $ 196,111 % 135,088 %$ 331,199 % $ 170,750 % $221,000 % 209,814 % $430,814 %$ 932,763 % % % % % de…
Please help me
Just Dew It Corporation reports the following balance sheet information for 2020 and 2021. Prepare the 2021 combined common-size, common-base year balance sheet for Just Dew It. (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.)
Day 7 (8) Comparative balance sheets for 2021 and 2020 and a statement of income for 2021 are given below for Metagrobolize Industries. Additional information from the accounting records of Metagrobolize also is provided. METAGROBOLIZE INDUSTRIESComparative Balance SheetsDecember 31, 2021 and 2020($ in thousands) 2021 2020 Assets Cash $ 440 $ 190 Accounts receivable 470 250 Inventory 620 380 Land 625 575 Building 800 800 Less: Accumulated depreciation (200 ) (170 ) Equipment 2,800 2,510 Less: Accumulated depreciation (451 ) (420 ) Patent 1,600 1,800 $ 6,704 $ 5,915 Liabilities Accounts payable $ 720 $ 470 Accrued liabilities 210 165 Lease liability—land 130 0 Shareholders' Equity Common stock 2,650 2,500 Paid-in capital—excess of par 500…
Bethesda Mining Company reports the following balance sheet information for 2021 and 2022. Prepare the 2021 and 2022 common-size balance sheets for Bethesda Mining. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Current assets Cash Accounts receivable Inventory Total Fixed assets Assets Net plant and equipment Total assets Current liabilities Liabilities and Owners' Equity BETHESDA MINING COMPANY Balance Sheets as of December 31, 2021 and 2022 2021 % Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings Total Total liabilities and owners' equity $ 113,146 $ 252,645 $ $ $ 69 72,718 66,781 $ 185,422 80,520 $ 265,942 $ 228,000 $ $ 659,047 911,692 227,000 190,750 417,750 911,692 % $ % % % $ % $ % % $ % $ % 590,128 $ % $ 946,363 69 % $ % % $ % $ 2022 69 91,489 87,139 177,607 356,235 193,111 132,088 325,199 164,750 227,000 229,414 456,414…
Directly Compute Nonoperating Return with Noncontrolling Interest Selected balance sheet and income statement information from Abbott Laboratories for 2018 follows ($ millions). $ millions Net income Net income attributable to Company shareholders Net operating profit after tax (NOPAT) Net nonoperating expense (NNE) $3,078 3,078 3,822 744 Average net operating assets (NOA) 62,689 Average net nonoperating obligations (NNO) 22,506 Average total equity 40,183 Average equity attributable to Company shareholders 39,924 Compute the following measures a through h. a. Return on equity = (Net income attributable to Company shareholders/Average equity attributable to Company shareholders) Net income attributable to Company shareholders Average equity attributable to Company shareholders ROE %
Suppose the following financial data were reported by 3M Company for 2019 and 2020 (dollars in millions). 3M CompanyBalance Sheets (partial) 2020 2019 Current assets Cash and cash equivalents $3,200 $1,881 Accounts receivable, net 3,500 3,175 Inventories 2,702 3,044 Other current assets 1,896 1,582 Total current assets $11,298 $9,682 Current liabilities $4,791 $5,869 1.Calculate the current ratio and working capital for 3M for 2019 and 2020. 2.Suppose that at the end of 2020, 3M management used $198 million cash to pay off $198 million of accounts payable. How would its current ratio and working capital have changed?