Digos Company was organized on January 1, 2020. On the same date, 25,000, P100 par value,ardinary shares were issued in exchange for property, plant and equipment valued at P3,000,000and cash of P1,000,000. The following data summarizes the activities for 2020:a. Profit for the year ended December 31, 2020 was P1,000,000.b. Raw materials on hand on December 31 were equal to 25% of raw materials purchased.c. Manufacturing costs were distributed as follows:Materials used50%Direct labor30%Factory overhead20% (includes depreciation of building P100,000)d. Goods in process remaining in the factory on December 31 were equal to 1/3 of the goodsfinished and transferred to stock.e. Finished goods remaining in stock on December 31 were equal to 25% of the cost of goodssold.f. Operating expenses were 30% of sales.g. Cost of goods sold was 150% of the operating expenses.h. Ninety percent of sales were collected during 2020. The balance was considered collectible.i. Seventy five percent of the raw materials purchased were paid for. There were no expenseaccruals or prepayments at the end of the year.Determine the following:7. Sales for the year ended December 31, 20208. Total manufacturing cost for the year ended December 31, 20209. Cost of goods sold for the year ended December 31, 202010, Total current assets as of December 31, 202011. Total liabilities and equity as of December 31, 2020

Name: Digos Company was organized on January 1, 2020. On the same date, 25,
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Description: Digos Company was organized on January 1, 2020. On the same date, 25,000, P100 par value,ardinary shares were issued in exchange for property, plant and equipment valued at P3,000,000and cash of P1,000,000. The following data summarizes the activiti

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Answered: Determine the following: 7. Sales for…

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Determine the following: 7. Sales for the year ended December 31, 2020 8. Total manufacturing cost for the year ended December 31, 2020 9. Cost of goods sold for the year ended December 31, 2020

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter11: The Corporate Income Tax

Section: Chapter Questions

Problem 5P: Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of...

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Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.
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. $_____________
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On July 1, 2020, Pina Corporation purchased Young Company by paying $255,400 cash and issuing a $138,000 note payable to Steve Young. At July 1, 2020, the balance sheet of Young Company was as follows. Cash $50,800 Accounts payable $208,000 Accounts receivable 92,000 Stockholders’ equity 239,200 Inventory 107,000 $447,200 Land 40,100 Buildings (net) 75,000 Equipment (net) 71,300 Trademarks 11,000 $447,200 The recorded amounts all approximate current values except for land (fair value of $60,600), inventory (fair value of $126,800), and trademarks (fair value of $16,400). The recorded amounts all approximate current values except for land (fair value of $60,600), inventory (fair value of $126,800), and trademarks (fair value of $16,400). A.) Prepare the July 1 entry for Pina Corporation to record the purchase. (Credit account titles are…