Income Tax Fundamentals 2020
Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Chapter 11, Problem 19MCQ
To determine

Introduction: To operate a business, a taxpayer generally chooses between individual trading, partnership, and corporation form of entity. The corporations can be of either S Corporation or C Corporation. The taxpayer needs to understand his business requirements properly for the smooth continuance of his business since each form of entity has different tax treatment. After 2018, a new 21 percent rate of tax was introduced for corporations. Corporations must include in ordinary taxable income all net capital gains income during the year for tax purposes and then the income taxed at a regular rate except in certain rare circumstances.

To choose: The B Corporation accumulated earnings tax.

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XYZ Corporation has one asset worth $450,000. Accumulated Depreciation to date is $190,000 and accumulated CCA is $220,000. The Corporation also recorded warranty expenses of $30,000. To date, no customers have required warranty service, so no warranty expenditures have been made. Assuming the tax rate is constant at 40%, this will result in: Question 18Select one: a. A net deferred income tax liability of $12,000 b. No temporary difference C. A net deferred income tax asset of $12,000 d. A net deferred income tax asset of $30,000
Assume that The Bell Company operates in an industry for which NOL carryback is allowed. The Bell Company had the following operating results:   Year Income (loss) Tax rate Income tax   2018   40,000       25 %     10,000   2019   40,000       25 %     10,000   2020   50,000       30 %     15,000   2021   (130,000 )     30 %     0                                What is the income tax refund receivable?         A) $27,000.         B) $24,000.       C) $25,000         D) $21,000.
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Chapter 19 Accounting for Income Taxes Part 1; Author: Vicki Stewart;https://www.youtube.com/watch?v=FMjwcdZhLoE;License: Standard Youtube License