Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 11, Problem 19MCQ
To determine
Introduction: To operate a business, a taxpayer generally chooses between individual trading,
To choose: The B Corporation
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
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.
Assume that the Kelso Company operates in an industry for which NOL carryback is allowed. The Kelso Company
had the following operating results:
O $22,800.
Year
2019
2020
2021
25%
What is the income tax refund receivable?
O $24,300
O $28,800.
Income (loss)
54,000
57,000
(72,000)
O 23,550.
Tax rate
35%
30%
Income tax
18,900first year of operations
17,100
0
Chapter 11 Solutions
Income Tax Fundamentals 2020
Ch. 11 - Ironwood Corporation has ordinary taxable income...Ch. 11 - Tayla Corporation generated $400,000 of taxable...Ch. 11 - Prob. 3MCQCh. 11 - Harrison Corporation generates capital...Ch. 11 - Prob. 5MCQCh. 11 - Prob. 6MCQCh. 11 - Prob. 7MCQCh. 11 - The purpose of Schedule M-1 on the corporate tax...Ch. 11 - Prob. 9MCQCh. 11 - Prob. 10MCQ
Ch. 11 - Prob. 11MCQCh. 11 - Prob. 12MCQCh. 11 - Prob. 13MCQCh. 11 - Prob. 14MCQCh. 11 - Prob. 15MCQCh. 11 - Prob. 16MCQCh. 11 - Prob. 17MCQCh. 11 - Prob. 18MCQCh. 11 - Prob. 19MCQCh. 11 - Prob. 20MCQCh. 11 - Prob. 21MCQCh. 11 - Quince Corporation has taxable income of $485,000...Ch. 11 - Prob. 2PCh. 11 - For its current tax year, Ilex Corporation has...Ch. 11 - DeMaria Corporation, a calendar year corporation,...Ch. 11 - Fisafolia Corporation has gross income from...Ch. 11 - Prob. 6PCh. 11 - Prob. 7PCh. 11 - The Loquat Corporation has book net income of...Ch. 11 - Caloundra Corporation has book income of $ 40,000....Ch. 11 - Prob. 10PCh. 11 - Prob. 11PCh. 11 - Prob. 12PCh. 11 - Prob. 13PCh. 11 - Grevilla Corporation is a manufacturing company....Ch. 11 - Prob. 15P
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
- Bryan Company estimated a loss of $30,000 that was included in its income for this year. This amount will not be included in taxable income until next year. The enacted tax rate is 20% this year, but will be 28% next year. What amount should the company report in this year’s balance sheet as a deferred tax asset? $30,000 $6000 $8400 zeroarrow_forwardMarvel Corporation (a C-corporation) has the following operating profit for 2019 through 2021. Year 2019 2020 2021 Operating profit ($60,000) $30,000 $50,000 Assume the marginal tax rate is flat 21%. (1) Discuss the tax consequences in year 2019, 2020, and 2021, respectively. (2) Why does the tax law allow business taxpayers to carry the net operating loss (NOL)?arrow_forwardAssume 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 Deferred tax Asset in 2021?arrow_forward
- ABC Inc. is subject to the limitation on business interest expense. During the tax year, ABC Inc. realized $75,000 of interest expense. ABC Inc. had no business interest income. The income from operations was $20,000. ABC Inc. has investment income of $20,000 and depreciation of $10,000. What amount of the business interest realized, if any, will be carried forward to the next tax year? $69,000 $6,000 $0 $75,000 Taxpayer is single and has taxable income of $50,000. What tax does taxpayer pay on this income? Round your answer to the nearest dollar. $6,749 $8,916 $4,664 $11,000arrow_forwardIn 2018, a domestic corporation paid for the monthly rental of a residential house of its branch manager, Mr. Juan dela Cruz, amounting to P156,000. Assume there is no transfer of ownership, what is the total amount of deductible expense by the employer from its gross income? a. Answer not given b. P120,000 c. P198,000 d. P156,000 e. P42,000arrow_forwardPyri Flours, a sole proprietorship, owes $9, 741 in taxes on taxable income of $61,509. If the firm earns $100 more in income, it will owe an additional $22 in taxes. What is the average tax rate on income of $61,609?arrow_forward
- Pyri Flours, a sole proprietorship, owes $9,741 in taxes on taxable income of $61,509. If the firm earns $100 more in income, it will owe an additional $22 in taxes. What is the average tax rate on income of $61,609? Multiple Choice O O 33.33% 35.00% 15.85% 30.33% 15.00%arrow_forwardGudubhaiarrow_forwardMunabhaiarrow_forward
- LO.1 In the current year, Azure Company has $350,000 of net operating income before deducting any compensation or other payment to its sole owner, Sasha. In addition, Azure has interest on municipal bonds of $25,000. Sasha has significant income from other sources and is in the 37% marginal tax bracket. Based on this information, determine the income tax consequences to Azure Company and to Sasha during the year for each of the following independent situations. (Ignore the deduction for qualified business income and the 3.8% Medicare surtax on net investment income.) a. Azure is a C corporation and pays no dividends or salary to Sasha. b. Azure is a C corporation and distributes $75,000 of dividends to Sasha. C. Azure is a C corporation and pays $75,000 of salary to Sasha. d. e. Azure is a sole proprietorship, and Sasha withdraws $0. Azure is a sole proprietorship, and Sasha withdraws $75,000.arrow_forwardA mixed income earner realized P920,000 from compensation, P2,000,000 in sales, P100,000 other income subject to tax and incurred P480,000 in expenses. A. What is the total compensation income subject to income tax? B. What is the income tax due from compensation? C. What is the total income from Business subject to income tax?arrow_forwardGrevilla Corporation is a manufacturing company. The corporation has accumulated earnings of $950,000, and it can establish reasonable needs for $400,000 of that amount. Calculate the amount of the accumulated earnings tax (if any) that Grevilla Corporation is subject to for this year. $_____________arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
Chapter 19 Accounting for Income Taxes Part 1; Author: Vicki Stewart;https://www.youtube.com/watch?v=FMjwcdZhLoE;License: Standard Youtube License