79.b)Assume Novak Corporation restricted retained earnings in the amount of $ on December 31, 2020. After this action, what would Novak report as total retained earnings in its December 31, 2020, balance sheet? Total retained earnings $ Novak Corporation began operations on January 1, 2022. During its first 3 years of operations, Novak reportednet income and declared dividends as follows.2022 $51,2002023Net income2024160,000204,800Dividends declared$-0-Effective tax rate64,00064,000The following information relates to 2025.Income before income taxPrior period adjustment: understatement of 2023 depreciation expense (before taxes)Dividends declared (of this amount, $32,000 will be paid on Jan. 15, 2026)$307,20032,000128,00020% Prepare a 2025 retained earnings statement for Novak Corporation. (List items that increase adjusted retained earnings first.)NOVAK CORPORATIONRetained Earnings Statement>>$LA

The statement of retained earnings help to track the changes in the balance of retained earnings. An…

2022 2023 2024 Net income $51,200 160,000 204,800 Dividends declared Income before income tax $-0- Effective tax rate 64,000 The following information relates to 2025. 64,000 Prior period adjustment: understatement of 2023 depreciation expense (before taxes) Dividends declared (of this amount, $32,000 will be paid on Jan. 15, 2026) $307,200 32,000 128,000 20%

2022 2023 2024 Net income $51,200 160,000 204,800 Dividends declared Income before income tax $-0- Effective tax rate 64,000 The following information relates to 2025. 64,000 Prior period adjustment: understatement of 2023 depreciation expense (before taxes) Dividends declared (of this amount, $32,000 will be paid on Jan. 15, 2026) $307,200 32,000 128,000 20%

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 48P

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Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of $160,000 for 2019. The corporation also has $30,000 in dividends from publicly traded domestic corporations in which the ownership percentage was 45 percent. Calculate the corporation's dividends received deduction for 2019. $_____________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $135,000. Calculate the corporation's dividends received deduction for 2019. $___________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $158,000. Calculate the corporation's dividends received deduction for 2019. $_____________
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.
Comprehensive Colt Company reports pretax financial income of 143,000 in 2019. In addition to pretax income from continuing operations (of which revenues are 295,000), the following items are included in this pretax income: Colts taxable income totals 93,000 in 2019. The difference between the pretax financial income and the taxable income is due to the excess of tax depreciation over financial depreciation on assets used in continuing operations. At the beginning of 2019, Colt had a retained earnings balance of 310.000 and a deferred tax liability of 8,100. During 2019, Colt declared and paid dividends of 48,000. It is subject to tax rates of 15% on the first 50,000 of income and 30% on income in excess of 50,000. Based on proper interperiod tax allocation procedures, Colt has determined that its 2019 ending deferred tax liability is 14,100. Required: 1. Prepare a schedule for Colt to allocate the total 2019 income tax expense to the various components of pretax income. 2. Prepare Colts income tax journal entry at the end of 2019. 3. Prepare Colts 2019 income statement. 4. Prepare Colts 2019 statement of retained earnings. 5. Show the related income tax disclosures on Colts December 31, 2019, balance sheet.
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Income Statement and Retained Earnings Huff Company presents the following items derived from its December 31, 2019, adjusted trial balance: The following information is also available for 2019 and is not reflected in the preceding accounts: 1. The common stock has been outstanding all year. A cash dividend of 1.28 per share was declared and paid. 2. Land was sold at a pretax gain of 6,300. 3. Division X (a major component of the company) was sold at a pretax gain of 4,700. It had incurred a 9,500 pretax operating loss during 2019. 4. A tornado, which is an unusual event in the area, caused a 5,400 pretax loss. 5. The income tax rate on all items of income is 30%. 6. The average shareholders equity is 90,000. Required: 1. Prepare a 2019 multiple-step income statement for Huff. 2. Prepare a 2019 retained earnings statement. 3. Compute the 2019 return on common equity (Net Income 4 Average Shareholders Equity).