South-Western Federal Taxation 2019: Individual Income Taxes (Intuit ProConnect Tax Online 2017 & RIA Checkpoint 1 term (6 months) Printed Access Card)
42nd Edition
ISBN: 9781337702546
Author: James C. Young, William H. Hoffman, William A. Raabe, David M. Maloney, Annette Nellen
Publisher: Cengage Learning
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Chapter 18, Problem 69P
Ven Company is a retailer. In 2018, its before-tax net income for financial reporting purposes was $600,000. This included a $150,000 gain from the sale of land held for several years as a possible plant site. The cost of the land was $100,000, the contract price for the sale was $250,000, and the company collected $120,000 in the year of sale. The income per books also included $90,000 from a 24-month service contract entered into in July 2017 (the customer paid $180,000 in advance for this contract). The addition to the allowance for uncollectible accounts for the year was $70,000, and the actual accounts written off totaled $40,000.
Make the necessary adjustments to the before taxable income per books to compute the taxable income for the year.
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Ven Company is a retailer. In 2021, its before-tax net income for financial reporting purposes was $600,000. This included a $150,000 gain
from the sale of land held for several years as a possible plant site. The cost of the land was $100,000, the contract price for the sale was
$250,000, and the company collected $120,000 in the year of sale. The income per books also included $90,000 from a 24-month service
contract entered into in July 2020 (the customer paid $180,000 in advance for this contract). The addition to the allowance for uncollectible
accounts for the year was $70,000, and the actual accounts written off totaled $40,000.
Answer the following regarding any necessary adjustments to the before-tax net income per books to compute Ven's taxable income for the
year.
What is the gross profit percentage for the installment sale?
What is amount of the installment gain installment sale for 2021?
What is the amount of service contract revenue recognized in 2021?
What is the amount…
BCD Company had sales Revenue of $500,000 for the year 2019. Its cost of goods sold was $240,000, and its operating expenses were $50,000, and administrative expenses $ 25,000. Interest revenue for the year is $5,000 of which $2000 is unearned and interest expense was $12,000. BCD’s income tax rate is 25%.
Required:
Prepare a classified multiple-step income statement for the year for BCD Company.
Brady, Inc., manufactures and sells water bottles. In its first year of operations, Brady, Inc., manufactured 53,120 water bottles and had 21,800 of these water bottles remaining in inventory at the end of the year. In the same year, the company capitalized $39,000 of direct material costs, $47,870 of direct labor costs, and $26,400 of indirect costs to inventory for financial reporting purposes. For tax, it capitalized these same amounts plus an additional $18,300 of indirect costs under UNICAP.
If Brady's net income for book purposes is $2,150,000, and if there are no other differences between Brady's book income and its taxable income than related to the above facts, what is Brady's taxable income? (Input your response without any commas, decimals, or symbols, etc.) Be prepared to explain your response and ask any questions at your next live session.
Chapter 18 Solutions
South-Western Federal Taxation 2019: Individual Income Taxes (Intuit ProConnect Tax Online 2017 & RIA Checkpoint 1 term (6 months) Printed Access Card)
Ch. 18 - Prob. 1DQCh. 18 - Prob. 2DQCh. 18 - Prob. 3DQCh. 18 - Prob. 4DQCh. 18 - Prob. 5DQCh. 18 - Prob. 7DQCh. 18 - Prob. 8DQCh. 18 - Prob. 9DQCh. 18 - Prob. 10DQCh. 18 - Prob. 12DQ
Ch. 18 - LO.2 Emerald Motors is an automobile dealer. The...Ch. 18 - Prob. 14DQCh. 18 - Prob. 15DQCh. 18 - Prob. 16DQCh. 18 - Prob. 17DQCh. 18 - Prob. 18DQCh. 18 - LO.2, 5 What are the similarities between the crop...Ch. 18 - Prob. 20DQCh. 18 - Prob. 21DQCh. 18 - Prob. 22DQCh. 18 - LO.6 Largo Company is an engineering consulting...Ch. 18 - Prob. 24DQCh. 18 - Prob. 25DQCh. 18 - Prob. 26DQCh. 18 - Prob. 27CECh. 18 - Prob. 28CECh. 18 - Prob. 29CECh. 18 - Prob. 30CECh. 18 - Prob. 31CECh. 18 - Prob. 32CECh. 18 - Prob. 33CECh. 18 - Prob. 34CECh. 18 - Prob. 37CECh. 18 - Prob. 39PCh. 18 - Prob. 40PCh. 18 - Prob. 41PCh. 18 - Prob. 42PCh. 18 - Prob. 43PCh. 18 - Prob. 44PCh. 18 - Prob. 45PCh. 18 - Prob. 46PCh. 18 - Prob. 47PCh. 18 - Prob. 48PCh. 18 - Prob. 49PCh. 18 - Jeffrey Boyd, the president of Eagle Furniture...Ch. 18 - Floyd, a cash basis taxpayer, has received an...Ch. 18 - Prob. 52PCh. 18 - Prob. 53PCh. 18 - Prob. 54PCh. 18 - Prob. 55PCh. 18 - Prob. 56PCh. 18 - Prob. 57PCh. 18 - Prob. 58PCh. 18 - Ostrich Company makes gasoline storage tanks....Ch. 18 - Prob. 61PCh. 18 - Grouse Company is a furniture retailer whose...Ch. 18 - Lavender Manufacturing Company began business in...Ch. 18 - Silver Creek Ranch LLC is a small, family-owned...Ch. 18 - Prob. 65PCh. 18 - Prob. 66PCh. 18 - Prob. 67PCh. 18 - Prob. 68PCh. 18 - Ven Company is a retailer. In 2018, its before-tax...Ch. 18 - Prob. 1RPCh. 18 - Prob. 2RPCh. 18 - Prob. 4RPCh. 18 - Paula has sales that qualify to be reported on the...
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