Answered: X Corp. had a net sales of P1M. The…

X Corp. had a net sales of P1M. The actual entertainment, amusement and recreation expense amounted to P20,000. The deductible “EAR” expense is?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 4P: Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had...

See similar textbooks

Related questions

Q: Fill in the missing numbers for the following income statement, and find the OCF and depreciation…

A: The cash flow that is generated by a company from its primary business operation is term as the…

Q: Consider the following income statement: $ 529,192 344,288 78,300 23% Sales Costs Depreciation Taxes…

A: Sales = $ 529192 Costs = $ 344288 Depreciation = $ 78300

Q: Consider the following income statement: Sales $909,407 Costs…

A: Operating cash flow (OCF) is a measurement of how much money a company generates through regular…

Q: Consider the following income statement: Sales Costs Depreciation Taxes $ 748,168 486,752 110,700…

A: The earnings before interest and taxes can be depicted as EBIT which can be computed after deducting…

Q: Y Corp. had Net Receipts of 1,000,000.0o. The actual entertainment, amusement and recreation expense…

A: The entertainment, amusement and recreation expenses are the expenses which are incurred in the…

Q: Consider the following information for Belle Corp. Selling and Administrative Expenses 50,000.00;…

A: An operating profit is defined as the total income of the company from their business functions at a…

Q: If the gross profit ( 2250 000 )D. The total Cost ( 4750 000 )D. , and the Sales value ( 7000 000…

A: If the gross profit 2250000D. The total Cost 4750 000D., and the Sales value 7000000 D.The percent…

Q: If the amount of net sales is RM23,000, net purchase is RM10,000 and the cost of sales is RM2,450,…

A: Gross Profit =Net Sales - Cost of goods sold

Q: the gross profit ( 2250 000 )$ , and the sales value ( 8550 000 )$ . Total cost ?

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: If the gross profit is P5,000 and the net profit is 25% of the gross profit. What are the expenses?…

A: Given: Net profit = Gross profit x 25%

Q: 3. Not for profit accounting accounts for expenses in the following manner: NET goods or services…

A: HST recovery is the type of expense recovery , this is allowed when one business purchased goods and…

Q: Consider the following income statement: Sales $ 383,208 Costs 249,312 Depreciation 56,700 Taxes…

A: Data given: Sales $ 383,208Costs 249,312Depreciation 56,700Taxes 25% Required: Calculate the EBIT.…

Q: In 2018, the total costs of operations (excluding income tax) amounted to P1,680,000. Included in…

Q: For the past year, Momsen Limited had sales of $47362, interest expense of $4,566, cost of goods…

A: Net income is the amount of money earned by the entity after deducting all the expenses from the…

Q: Gia, Inc. has sales of $497,000, costs of $276,000, depreciation expense of $43,000, interest…

A: Net income is the amount of money a person or business has left after deducting all expenses and…

Q: Your pro forma income statement shows sales of $1,006,000, cost of goods sold as $488,000,…

A: For external reporting requirements, such as regulatory compliance, tax filings, and annual reports,…

Q: This year, Southern Coat Company had sales of £730,000. Cost of goods sold, administrative and…

A: Step 1: Net Income: Statement of Comprehensive Income Sales 730,000.00 (-)…

Q: If the amount of net sales is RM23,000, net purchase is RM10,000 and t cost of sales is RM2,450,…

A: Gross profit is calculated as excess of sales revenue over cost of sales.

Q: flow

A: Introduction: Operating cash flow refers to the cash flow that is being generated by the business on…

Q: The web Corp has sales of $143489, cost of goods sold and other expenses (excluding depreciation) of…

A: Sales $ 1,43,489.00 Cost of goods sold and other expenses $ 55,491.00 Depreciation $…

Q: Consider the following income statement: Sales $ 602,184 Costs 391,776 Depreciation 89,100 Taxes…

A: EBIT stands for Earnings Before Interest and Taxes. It's a profitability indicator or a measure of a…

Q: The income statement for Northeast Co. is shown below. How much is net operating profit after taxes…

A: The net income of the company refers to the excess of revenues of the company over the costs that…

Q: Comparable Sale A was recently sold for $736,291. Assume the PGI of the property is $162,064 and its…

A: sale price = $736,391 Effective Gross Income = $80,239

Q: Fill in the missing numbers for the following income statement. (Do not round intermediate…

A: Operating cash flow(OCF) is a cash flow that is generated from normal operations. It can be…

Q: Given the following information :sales R10 000 000,calculated gross profit R7 000 000 ,operating…

A: Income Statement is a summary of all revenues, gains and all expenses and losses incurred during the…

Q: Consider the following information for Belle Corp. Selling and Administrative Expenses 50,00o.00;…

A: Operating Profit-: Operating Profit is the revenue earned from the core undertakings of a company,…

Q: Holly Farms has sales of S509,600, costs of $448,150, depreciation expense of $36,100, and interest…

A: Here, Sales is $509,600 Costs is $448,150 Depreciation Expense is $36,100 Interest Paid is $12,400…

Q: Zhang Corporation had net income of R100 000 paid income taxes of R30 000 and had interest expense…

A: Times interest earned ratio = Earnings before Interest and taxes ÷ Interest expense

Question

X Corp. had a net sales of P1M. The actual entertainment, amusement and recreation expense amounted to P20,000. The deductible “EAR” expense is?

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

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

Y Corp. had Net Receipts of 1,000,000.00. The actual entertainment, amusement and recreation expense amounted to 20,000.00. How much is the deductible entertainment, amusement and recreation expense? O 15,000.00 10,000.00 O 5,000.00 20,000.00
FGH Corporation had the following in 2021: Sales P 3.4M; Cost of sales P 1.2M; Admin expense P 0.3M; Selling expenses P .5M; other taxable income from operations P .1M. What is deductible expense if the company uses OSD?* a. 920,000 b. 1,360,000 c. 880,000 d. 800,000 Using the problem above, what is the income tax payable?* a. 330,000 b. 375,000 c. 575,000 d. 525,000
Consider the following income statement: Sales Costs Depreciation Taxes Calculate the EBIT. EBIT $748,168 486,752 110,700 Net income 23% Calculate the net income.
Consider the following income statement: $ 529,192 344,288 78,300 23% Sales Costs Depreciation Taxes Calculate the EBIT. EBIT
Trade receivables have a carrying amount of P4,000. The related revenue has already been included in taxable profit (tax loss). How much is the tax base of the asset? The tax rate is 40%.
Your pro forma income statement shows sales of $1,006,000, cost of goods sold as $488,000, depreciation expense of $97,000, and taxes of $105,250 due to a tax rate of 25%. What are your pro forma earnings? What is your pro forma free cash flow? Complete the pro forma income statement below: (Round to the nearest dollar.) Sales Cost of Goods Sold Gross Profit Depreciation EBIT Taxes (25%) Earnings $ $ $ $ $ $ $
Consider the following income statement: Sales $ 383,208Costs 249,312Depreciation 56,700Taxes 25% Calculate the EBIT. Calculate the net income. Calculate the OCF. What is the depreciation tax shield? Pls fast
The web Corp has sales of $143489, cost of goods sold and other expenses (excluding depreciation) of $55491, depreciation of $16870, and a debt of $8000 on which it has to pay 4% interest. It's tax rate is 35%. Calculate its net income
Given the following information :sales R10 000 000,calculated gross profit R7 000 000 ,operating expenses R3 200 000,Interest income R60 000,Interest expense R250 000 and income tax 28% of profit before tax . Net profit after tax is ?
Consider the following data extracted from an after-tax cash flow calculation. Before-Tax-and-Loan = $22,500 Loan Principal Payment = $5,926 Loan Interest Payment = $2,400 MACRS Depreciation Deduction = $16,665 Which of the following is closest to the Taxable Income? a. −$2,491. b. −$91. c. $3,435. d. $14,174
A Non-VAT business reported the following:Sales P2,500,000Cost of Sales P1,000,000Purchases, inclusive of VAT P560,000How much is the amount of business tax payable?
For the past year, Momsen Limited had sales of $47362, interest expense of $4166, cost of goods sold of $17,359, selling and administrative expense of $12,146, and depreciation of $6,995. If the tax rate was 21 percent, what was the company's net income? Multiple Choice O $5,132 $6,496 $11,550 $4,547 $2.444