ADV.FIN.ACCT.LL W/CONNECT+PROCTORIO PLUS
12th Edition
ISBN: 9781266380570
Author: Christensen
Publisher: MCG
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Chapter 13, Problem 13.3.10E
To determine
Introduction: Interim reporting is made in between the fiscal year. It is made before the completion of fiscal year in mostly public corporation for taking various decisions for the remaining period. Mostly quarterly and half yearly report is prepared.
To choose: The correct answer.
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[Fact Pattern #1]
Zeff Co. prepared the following reconciliation of its pretax financial statement income to taxable
income for the current year, its first year of operations:
Pretax financial income
$160,000
Nontaxable interest received on
municipal securities
Long-term loss accrual in excess
(5,000)
of deductible amount
10,000
Depreciation in excess of financial
statement amount
(25,000)
Taxable income
$140,000
Zeff's tax rate is 40%.
[1] ( Refers to Fact Pattern 1)
In its current-year income statement, what amount should Zeff report as income tax expense –
current portion?
A. $52,000
B. $56,000
C. $62,000
D. $64,000
[The following information applies to the questions displayed below]
AMP Corporation (calendar-year-end) has 2023 taxable income of $1,900,000 for purposes of computing the 5179 expense. During 2023, AMP acquired
the following assets. (Use MACRS Table 1, Table 2. Table 3. Table 4, and Table 5)
Machinery
Computer equipment
Office building
Total
Asset
Placed in Service
September 12
February 10
April 2
a. What is the maximum amount of $179 expense AMP may deduct for 2023?
Maximum §179 expense deductible
$
1,446,232
Basis
$ 1,370,000
405,000
520,000
$ 2,295,000
3
Chapter 13 Solutions
ADV.FIN.ACCT.LL W/CONNECT+PROCTORIO PLUS
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