A Pirate's Life for Me, Inc. has been doing business for years in New York State providing boat building services. This year is the first year it was able to expand its business to another state, North Carolina. During the year the company had $1,000,000 of sales in New York State and $1.200,000 of sales in North Carolina, A Pirate's Life for Me, Inc. had payroll and property only in New York in the amount of $1,500,000 and $5,000,000, respectively. NC applies a single sale factor apportionment formula. Please explain the tax impact to the company of doing business in North Carolina and where the company will have to file corporate tax returns this year.
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- Harold Dunn and his wife Evadne operate a successful snack packaging business, Healthy Snacks, in St. Mary. The bulk buying of the raw materials (nuts, dried fruits, etc), the packaging and delivery to corporate area shops are done by the members of the family. The accounts for Mr. Dunn's business at 31 December 207 showed a profit of $4,500,000 after charging: $180,000 depreciation of equipment and office furniture; $750,000 for salary to his wife Evadne who supervises the office, $496,000 to his 18 year old son Shane, and $1,720,000 to himself. $78,000 interest on a loan he had obtained tgexpand his busines 3 (a) Prepare a statement, with notes where applicable, of the Healthy for the year of assessment 2014 for Harold Dunn Snacks bustness showing the taxable prof b and income tax liability (b) Shane is a part time student at the University of the West Indies. What is his tax liability, if any?You just completed your first year in business on 31 December 2021. Operating revenues were $360,000. Your company paid you an annual salary of $96,000. Two employees had annual salaries of $48,000 and $36,000. Your employment taxes and benefits during the year for you and employees were $34,600. Office supplies and postage were $10,400. Travel and entertainment expense to promote your new business was $17,000. Monthly tax-deductible expense for leasing office space was $2,700. The year’s depreciation expense on office furniture and fixtures was $15,600. You borrowed $120,000 and spent $15,000 in interest payments. The average tax rate for the business was 30%. (a) Prepare a multi-step income statement from the above information. (b) Analyze the financial performance of the new company’s first year in businessMallard Incorporated (MI) is a small manufacturing company that makes model trains to sell to toy stores. The company purchased equipment for a new addition to its factory for $30,000, paying $3,000 in cash and signing a note due in six months for the remaining balance. How does this transaction affect the accounting equation?