South-western Federal Taxation 2018: Individual Income Taxes
41st Edition
ISBN: 9781337385886
Author: William H. Hoffman, James C. Young, William A. Raabe, David M. Maloney, Annette Nellen
Publisher: Cengage Learning
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Question
Chapter 18, Problem 9DQ
To determine
Determine the amount of federal income tax deduction of O Corporation for state income tax.
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Osprey Corporation, an accrual basis taxpayer, reported taxable income for 2021 and paid $15,000 on its estimated state income tax for the year. During 2021, the company received a $1,500 refund upon filing its 2020 state income tax return. The company filed its 2021 state income tax return in August 2022 and paid the $3,750 state income tax due for 2021. In December 2021, the company received a notice from the state tax commission that an additional $2,250 of income tax was due for 2019 because of an error on the return. The company acknowledged the error in December 2021 and paid the additional $2,250 in tax in February 2022.
What is Osprey's 2021 Federal income tax deduction for state income taxes?
Anchor, inc, reports pretax financial income of $100,000 for 2020, S120,000 for 2021, and $140,000
for 2022. The following items cause taxable income on Anchor's income tax return to be different than
pretax financial income for 2020:
Proceeds from the collection of an officer's life insurance policy in the amount of
$10,000.
1.
Depreciation on the 2020 tax return is greater than on the income statement by $24,000.
That difference will reverse over the following two years.
2.
3.Rent collected on the tax return is greater than that recognized on the 2020
income statement by $18,000. That amount will reverse in 2021.
There were no additional originating differences during the years 2020 through 2022, and there were no
deferred income tax balances at January 1, 2020. Anchor's income tax rate for all three years 2020-
2022 was 20%.
REQUIRED:
1.
Compute taxable income on the income tax return for each of the years 2020, 2021 and 2022.
Prepare the journal entries to record Anchor's income…
Jackson Corporation has accumulated minimum tax credits of $475,000 from tax years prior to 2019.
Required:
If 2019 regular tax before credits is $210,000 and Jackson qualifies for general business credits of $13,000, calculate its allowable minimum tax credit for 2019.
Chapter 18 Solutions
South-western Federal Taxation 2018: Individual Income Taxes
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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