Chapter 8, Problem 8.10P

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.

Prey ltd accountant has estimated current tax of 50 000 based on the current profit. The income tax value of the non-current assets are 75 000 and the carrying amount of non-current assets as at 31 December 2020 is 90 000.Tax rate is 22%. Using the information given above,calculate the deferred tax for the year ended 31 December 2020

How do the all events and economic performance requirements apply to the following transactions by an accrual basis taxpayer? a. The company guarantees its products for six months. At the end of 2019, customers had made valid claims for 600,000 that were not paid until 2020. Also, the company estimates that another 400,000 in claims from 2019 sales will be filed and paid in 2020. b. The accrual basis taxpayer reported 200,000 in corporate taxable income for 2019. The state income tax rate was 6%. The corporation paid 7,000 in estimated state income taxes in 2019 and paid 2,000 on 2018 state income taxes when it filed its 2018 state income tax return in March 2019. The company filed its 2019 state income tax return in March 2020 and paid the remaining 5,000 of its 2019 state income tax liability. c. An employee was involved in an accident while making a sales call. The company paid the injured victim 15,000 in 2019 and agreed to pay the victim 15,000 a year for the next nine years.

Required: 1. Prepare the journal entry to recognize the income tax benefit of the net operating loss in 2021. Assume Fore will carry back its NOL to prior years. 2. What is the net operating loss reported in 2021 income statement? 3. Prepare the journal entry to record income taxes in 2022 assuming pretax accounting income is $288 million. No additional temporary differences originate in 2022.

Assume that Shoreline Hotel Inc., (SHI) decides to make the following entry on December 31, 2018. Current tax rate is 40%.        DR Current income tax expense                   $634,800        CR        Income tax payable                                                     $634,800  This would imply that    Select one: a. the taxable income for 2018 was different than the accounting income. b. the income tax expense reported by SHI on its income statement would be $750,000. c. the taxable income for 2018 was determined to be $1,587,000. d. All of the above. e. None of the above.

At the beginning of 2020, Bramble Construction Company changed from the completed-contract method to recognizing revenue over time (percentage-of-completion) for financial reporting purposes. The company will continue to use the completed-contract method for tax purposes. For years prior to 2020, pretax income under the two methods was as follows: percentage-of-completion $114,200, and completed-contract $78,200. The tax rate is 40%. Bramble has a profit-sharing plan, which pays all employees a bonus at year-end based on 2% of pretax income.Compute the indirect effect of Bramble’s change in accounting principle that will be reported in the 2020 income statement, assuming that the profit-sharing contract explicitly requires adjustment for changes in income numbers. Indirect effect   $enter the Indirect effect in dollars

Foster Company reported pretax financial income of $350,000 for 2021. Foster uses an accelerated form of depreciation for tax purposes, and it exceeds book depreciation by $50,000. The tax rate for 2021 is 20%. Record the journal entry at the end of 2021, be sure to include calculations, as well as income tax expense, a deferred account, and income tax payable.

In its first three years of operations, Vaden Corp. experienced the following income/(losses):   Year Income/(Loss) Tax Rate 2020 50,000 0.35 2021 40,000 0.30 2022 (130,000) 0.30     Required:   Prepare the journal entry that Vaden needs to make in 2022, assuming that it is more likely than not that any loss carryforward will be realized? Prepare the income tax section of the income statement for 2022, beginning with Pretax Net Loss. What additional entry would Vaden need to make in 2022 if it is more likely than not that any loss carryforward will NOT be realized? I need only answer 3

How much is AMSTERDAM's net income for the year ended December 31, 2021?