During 2024, its first year of operations, Baginski Steel Corporation reported a net operating loss of $360,000 for financial reporting and tax purposes. The enacted tax rate is 25%. Required:
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Immediate Accounting ll Ch 16
3. During 2024, its first year of operations, Baginski Steel Corporation reported a net operating loss of $360,000 for financial reporting and tax purposes. The enacted tax rate is 25%.
Required:
- Prepare the
journal entry to recognize the income tax benefit of the net operating loss. Assume the weight of available evidence suggests that future taxable income will be sufficient to benefit from future deductible amounts arising from the net operating loss carryforward. - Show the lower portion of the 2024 income statement that reports the income tax benefit of the net operating loss.
- Required 1
Record 2024 income tax benefit from operating loss
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- BLOCK D/2018/2 A company shows a taxable profit of € 1.3 million for t1 in the tax balance sheet. The income tax rate is 30%. In addition, net income under commercial law before taxes of € 1.6 million was reported in the same reporting period. What is the maximum amount this company can distribute to shareholders from the annual results of the current reporting period? Present your calculations comprehensibly!QUESTION 1 The following information has been provided for the year ended 31 December 2022 Depreciation for Accounting purposes Machinery R16 000 Equipment R27 500 Wear and Tear Machinery R25 000 Equipment R30 000 Dividends received R35 000 Revenue received in advance R26 000 (2022) Revenue received in advance R18 000 (2021) Profit before tax is R300 000 after taking the above figures into account. Assume a tax rate of 28% Required. CALCULATE the current tax for the year ended 31 December 2022 Show the calculationsRequired Answer each of the following questions by providing supporting computations. 1. Assume that the company’s income tax rate is 30% for all items. Identify the tax effects and after-tax amounts of the three items labeled pretax. 2. Compute the amount of income from continuing operations before income taxes. What is the amount of the income tax expense? What is the amount of income from continuing operations? 3. What is the total amount of after-tax income (loss) associated with the discontinued segment? 4. What is the amount of net income for the year?
- V4. The Ahram Company net income was 100,000 L.E. for the year ended on 31/12/2016. The examination of the income statement of this year revealed that the income statement included a deduction of the following a) The cost of computers that were purchased on 1/6/2016 for 15,000 b) Depreciation expense of 9,000 for furniture’s at a rate of 10% Required: Calculate Taxable net income and indicate the reasoning for your calculations for 2016. (Be careful, needs a bit of thought )Concept Review 3.1- Please turn to page 151 of the text and complete Financial Planning Problem 1. (Personal Finance, 13th ed., Kapoor, Dlabay) Computing Taxable Income: Ross Martin arrived at the following tax information… Gross salary: $56,145 Interest earnings: $205 Dividend income: $65 Standard deductions: $12,000 Itemized deductions: $11,250 Adjustments (subtractions) to income: $1,200 What amount would Ross report as taxable income?Question C5 Majan Ltd income statement for the year ended 31st Dec 2020 and the balance sheets as at 31st Dec 2009 and 2019 are as follows: Income statement OMR in million Revenue 312 Cost of sales (177) Gross profit 135 Distribution expenses (36) Administrative expenses (15) 84 Rental income 14 Operating profit 98 Interest payable (13) Profit before taxation 85 Taxation (18) Profit for the year 67 Balance sheet as at 31st Dec 2020 and 2019 2020 2019 OMR in million OMR in million Non – current assets Property, plant and equipment Land and buildings 155 155 Plant and machinery 157 163 312 318 Current assets Inventories 18 21 Trade receivables 73 70 Current liabilities…
- 1. How much is the gross profit for the year ended December 31, 2021? 2. How much is the gain on sale of delivery equipment for the year ended December 31, 2021? 3. How much is the operating expenses (EXCLUDING DEPRECIATION) incurred for the year ended December 31, 2021? 4. How much is the depreciation expense for the year ended December 31, 2021? 5. How much is the net income before income tax for the year ended December 31, 2021?Statement 1: 13th month pay is exempted from income tax but the exemption is only up to a certain amount. Statement 2: Gains from sale of bonds, debentures, or certificates of indebtedness is excluded from gross income. a. Both statements are true b. Both statements are false c. Only statement 1 is true d. Only statement 2 is trueQuestion 1 Loftus et al (2023) Exercise 13.5 Amended The following information was extracted from records of Nawa Ltd for the year ended 30 June 2024. NAWA LTD Statement of financial position (extract) as at 30 June 2024 Assets Accounts receivable $ 50 000 Allowance for doubtful debts (5 000 ) $ 45 000 Motor vehicles 250 000 Accumulated depreciation — motor vehicles (50 000 ) 200 000 Liabilities Interest payable 5 000 Additional information • The accumulated tax depreciation for motor vehicles at 30 June 2024 was $100 000. • As at 30 June 2023, the balance in the deferred tax asset was $2,000 and the balance in the deferred tax liability was $8,000. • The income tax rate is 30%. Required: Prepare a deferred tax worksheet for Nawa Ltd and the end of year deferred tax journal entry required to bring the deferred tax accounts to their ending balances as at 30 June 2024.
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