Answered: Fiscal Year June 30, 2021 (5th yr) 2022…

Fiscal Year June 30, 2021 (5th yr) 2022 Sales 80,000,000.00 75,000,000.00 Cost of Sales 50,000,000.00 46,875,000.00 Allowable deductions excluding NOLCO 32,000,000.00 25,000,000.00

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter20: Corporations And Parterships

Section: Chapter Questions

Problem 25CE

See similar textbooks

Related questions

Q: Compute the income tax due in 2021. A. 50,000 B. 800,000 C. 290,000 D. 400,000

A: The proprietary educational institutions are the entities that have issued permits based on the…

Q: nstruction were as follows: n 1, 2020. $600,000 $1800,000 $1800,000 arch 31,2021. $1800,000…

A: A... Weighted Average Expense Jan2 = Time in Month taken / Total Month x Expense of Asset…

Q: CarRoq Corporation, a domestic dorporation a retailer of goods h gross sales of P 1,400,000,000 v…

A: The deduction can be taken OSD or itemized deductions. Although the amount of deduction is given so…

Q: 14-8. Wall Services computed pretax financial income of P2,200,000 for its first year of operations…

A: Answer - Part 1 - Schedule of reversal of the temporary differences - Year Working Temp…

Q: sets and obligations Plan assets (at fair value) $600,000 Accumulated benefit obligation 1,110,000…

A: Pension expense refers to the amount which the business charges to the expense in relation to the…

Q: WEIS Construction Company uses the percentage-of-completion method of accounting. In 2020, WEIS…

A: Under percentage method, the revenue is recognised on the basis of percentage of the work completed…

Q: 2018 2019 Revenues $ 995 $1,073 800 840 Expenses Pretax accounting income (income statement) Taxable…

A: Solution 2: Tax schedule showing reconciliation between pre tax financial income, taxable income,…

Q: 2,410,000 35% 8,000,000 Nicanor, a Filipino Citizen residing in Manila, had the following data for…

A: Passive income is the income generated from the job in which you are not actively involved. Interest…

Q: 2020 2021 Costs incurred during the year Estimated costs to complete, as of December 31 Billings…

A: Gross profit is that the profit a corporation makes once deducting the prices related to creating…

Q: UMPI’s end of year pretax financial income for 2018 was $720,000. Included in it was $40,000 in…

A: Solution: Computation of Taxable Income and Taxes Payable Particulars Amount Pretax income…

Q: The Bellview Corporation, which sells a single commodity, show the lowing operating results for a…

A: Summary of detailed changes in gross profit for 2019 and 2020: Particulars 2019 2020 Change…

Q: ABC Corporation has the following sales during the 1st quarter of 2021: Sale to private entities…

A: GIVEN DATA ABC Corporation has the following sales during the 1st quarter of 2021: Sale to…

Q: . Chicken Wings Inc. reported P950,000 net income for the quarter ended September 30, 2020 which…

A: Net Income Net income is considered to be one of the important factors of the business as well.…

Q: Please complete parts B and C . ix) Taxation of $85,000 has to be settled in December. x)…

A: Answer B) Trade receive as of 31st Dec: =20% of Nov credit sales + 50% of Dec credit sales = 800,000…

Q: 2020 2019 Receivable from Construction contract Costs incurred each year. Construction in…

A: Contract costing is one of the important concept used in cost accounting. Under this, costs are…

Q: 2 permanent differences and 2 temporary differences from items (a) to (g) shown in the table above.…

A: Income tax is the tax liability which is compulsorily paid by the individual or the entity based…

Q: Fiscal Year June 30, 2021 (5th yr) 2022 Sales 80,000,000.00 75,000,000.00 Cost of Sales…

A: Net gain is the last pay that is received by the representative from the business subsequent to…

Q: 2020 2021 2022 Costs incurred $400,000 $425,000 $245,000 Estimated costs to complete 600,000 275,000…

A: Gross profit recognized in 2020 Contract price=$1,600,000 Costs incurred= $400,000 +$600,000…

Q: corrected profit for the following year

A: Corrected profit for the year = Reported net income - Overstatement in ending inventory

Q: Nicanor, a Filipino Citizen residing in Manila, had the following data for the taxable year 2021:

A: In Phillipines for the year 2021 the individuals are taxed…

Q: project in 2021. The project re ailable for release to custome ne 30, 2021 were $3,200,000 ere…

A: The right option is D $560,000.

Q: liability at the end manufacturing defe e tax return in 2023- n of temporary diffe oses, ¥7 million…

A: a) Deferred tax asset:

Q: GRADUATED TAX TABLE UNDER TRAIN LAW (January 1, 2018 to December 31, 2022) Over But not over The…

A: INTRODUCTION: A capital gain is a rise in the value of an asset or investment due to price…

Q: ABC Corporation's cumulative balance of RCIT, MCIT, taxes withheld, excess MCIT and excess…

A: Income tax- An income tax is a tax obligatory on persons or entities (taxpayers) in admiration of…

Q: . West Star Realty Corp. sells a commercial lot in the month of November 2021 under following terms…

A: Given, Total contract price P1,120,000Down payment. 11-01-2021 112,000First installment 12-01-2021…

Q: Pretax Financial Year Income (Loss) Tax Rate 2018 50,000 30% 2019 120,000 25% 22% 2020 (200,000)…

A: Income Tax Income tax is the direct tax that is imposed by the government of a nation. income tax…

Q: A company prepared the following reconciliation for 2021: Pretax financial income for 2021…

A: Particulars Amount Pretax financial income for 2021 $719000 Originating temporary difference…

Q: accounting income (income sta eincome (tax return) : 25% s each year include $30 million fro e…

A: Taxable income refers to the sum value of money gained by an entity on which the authorized…

Q: On January 1, 2019, the Philippines Inc. issued P3,000,000, 12% promissory note for an equipment…

A: Value of Equipment = Present value of principal + Present value of interest payments where, Present…

Q: Answers the days of Working capital based on the information below:…

A: Given: Particulars 2020 2021 Trade receivables $260,000 $285,000 Inventories $350,000…

Q: (Computation of Pension Expense) Veldre Company provides the following information about its defined…

A: The net periodic pension costs include: 1. Current service cost 2. Past service cost 3. Interest…

Q: 3. Land Construction Co. has consistently used the percentage of completion method of recognizing…

A: Percentage of completion method recognizes the profit with respect to the revenue & costs that…

Q: On January 1, 2022, Charis Company adopted a plan anuary 1, 2026 at an estimated cost of P20,000,000…

A: In this question, we have to find out the annual deposit to the fund.

Q: Dec 31 Purchased new equipment for P750,000, paying P150,000 cash and signing a 3-year, 7% note for…

A: Warranty expense refers to the expenses which is to be incurred by a business entity in case their…

Q: The following information is available for Metlock Corporation for 2020. 1. Depreciation…

A: Income tax = Taxable Income * tax rate or , Taxable Income = Income tax / Tax rate

Q: What is the excess of construction in progress over progress billings on December 31, 2020 under…

A: The cost-to-cost method compares the total expected costs of a project to the costs incurred to…

Q: a fair value of P5,960,000. What is the compound journal entry to update the carrying value of the…

Q: WEIS Construction Company uses the percentage-of-completion method of accounting. In 2020, WEIS…

A: The percentage of completion method is used to recognize revenue from a project for a certain time…

Q: If the tax rate is 21%, determine the Free Cash Flow for 2020 2019 2020 2019 2020 書 Net sales Cost…

A: Cash flow statement: It is a statement which reports the cash inflows and outflows of a business…

Q: January 2, 2020, Maelet Co. purchased a fran ten years for P600.000. An additional franchise f…

A: Solution: Balancing Value= 600,000 (Note that franchise fee will not be capitalized) Useful life =…

Q: 14. What is the Construction in Progress, net of Progress Billings at December 31, 2021, using zero…

A: Construction in Progress (CIP ) is the total cost incurred till date on the construction of the…

Q: Tibker Company entered into a four-year P5,000,000 construction contract which was completed in…

A: Percentage of Completion Method In the percentage of completion method of contract first to…

Q: Under the accrual basis rental income of EL Company for the calendar year 2020 is P600,000.…

A: Unearned revenue:- Unearned revenue is also known as deferred revenue which include the amount of…

Q: 5. In 2020, Lalli Corporation incurred R&D costs as follows: Materials and equipment P100,000…

A: Intangible asset are the non-current asset which can’t be seen and touched. It does not have any…

Q: 24 On January 1, 2021, BB Company sold an equipment costing P10,000,000 and accumulated…

A: Solution Working note Calculation of the carrying value of equipment =10000000-2500000 = 7500000…

Q: Fiscal Year June 30, 2021 (5th yr) 2022 2023 Sales 81,000,000.00 75,000,000.00 86,000,000.00 Cost of…

A: Solution: Particulars 2021 2022 2023 Sales 81000000 75000000 86000000 Less: Cost of Sales…

Q: Fiscal Year June 30, 2021 (5th yr) 2022 Sales 80,000,000.00 75,000,000.00 Cost of Sales…

A: Net gain is the last pay that is received by the representative from the business subsequent to…

Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

Using the information in the picture, how much is the tax due in FY 2022? *

Fiscal Year June 30, 2021 (5th yr)
2022
Sales
80,000,000.00
75,000,000.00
Cost of Sales
50,000,000.00
46,875,000.00
Allowable deductions excluding NOLCO
32,000,000.00
25,000,000.00
What is the tax due and payable amount in FY 2021?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Incomc Taxes Then Company has been in operation for several years. It has both a deductible and a taxable temporary difference. At the beginning of 2019, its deferred tax asset was 690, and its deferred tax liability was 750. The company expects its lutine deductible amount to be deductible in 2020 and its Inline taxable amount to 1 taxable in 2021. In 2018, Congress enacted income tax rates for future years as follows: 2019, 30%; 2020, 34%; and 2021, 35%. At the end of 2019, Then reported income taxes payable of 25,800, an increase in its deferred tax liability of 300, and an ending balance in its deferred tax asset of 860. Thun has prepared the following schedule of items related to its income taxes for 2019. Required: Fill in the blanks in the preceding schedule. Show your calculations.
Rhodes Corporations financial statements are shown after part f. Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions. a. What is the net operating profit after taxes (NOPAT) for 2020? b. What are the amounts of net operating working capital for both years? c. What are the amounts of total net operating capital for both years? d. What is the free cash flow for 2020? e. What is the ROIC for 2020? f. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.) Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)
Accrued Income Taxes Nolan Inc. had taxable income of $400,000 in 2019. Its effective tax rate is 35%. Nolan pays its 2019 income taxes on April 15, 2020. Required: 1. Given this information, determine the adjusting journal entry that Nolan must make on December 31, 2019. 2. Prepare the journal entry to record the tax payment.
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.
Interperiod Tax Allocation Peterson Company has computed its pretax financial income to be 66,000 in 2019 after including the effects of the appropriate items from the following information: Petersons accountant has prepared the following schedule showing the future taxable and deductible amounts at the end of 2019 for its three temporary differences: At the beginning of 2019, Peterson had a deferred tax liability of 12,540 related to the depreciation difference and 4,710 related to the accrual-basis sales difference. In addition, it had a deferred tax asset of 14,850 related to the warranty difference. The current tax rate is 30%, and no change in the tax rate has been enacted for future years. Required: 1. Compute Petersons taxable income for 2019. 2. Prepare Petersons income tax journal entry for 2019 (assume no valuation allowance is necessary). 3. Next Level Identify the permanent differences in Items 1 through and explain why you did or did not account for them as deferred tax items in Requirement 2.
Bonus Obligation and Income Tax Expense James Kimberley, president of National Motors, receives a bonus of 10% of Nationals profits above 1,500,000, before the bonus and the corporations income taxes are deducted. Nationals effective income tax rate is 21%. Profits before income taxes and his bonus are 5,000,000 for 2019. Required: 1. Compute the amount of Kimberleys bonus for 2019. 2. Compute National Motors income tax expense for 2019. 3. Prepare journal entries at the end of 2019 to record the bonus and income taxes. 4. Show how the bonus and income taxes would be reported on National Motors December 31,2019, balance sheet.
LO.2 Osprey Corporation, an accrual basis taxpayer, had taxable income for 2019 and paid 40,000 on its estimated state income tax for the year. During 2019, the company received a 4,000 refund upon filing its 2018 state income tax return. The company filed its 2019 state income tax return in August 2020 and paid the 7,000 state income tax due for 2019. In December 2019, the company received a notice from the state tax commission that an additional 6,000 of income tax was due for 2017 because of an error on the return. The company acknowledged the error in December 2019 and paid the additional 6,000 in tax in February 2020. What is Ospreys 2019 Federal income tax deduction for state income taxes?
Temporary and Permanent Differences Lin has just completed its first year of operations and has a number of differences between its pretax financial income and taxable income. The differences at the end of 2019 are as follows: a. Lin recorded 7,000 of interest revenue on municipal bonds during 2019. b. 15,000 of accrual-basis sales were recognized in income during 2019. They are expected to be received in cash during January 2020. c. Depreciation on machinery totaled 28,000 using straight-line depreciation for financial statements. Lins tax accountant recorded 36,000 of depreciation on the companys tax return. d. Lin was fined 3,000 for violating certain labor laws during 2019. Lin paid the fine during 2019 and agreed to ensure future violations would not occur. e. Bryant Corporation has agreed to rent space from Lin in 2020. In December 2019, Lin received 7,500 from Bryant in advance for rent. f. For 2019, Lin reported 9,500 of warranty expense on its income statement. The companys warranty liability at the end of 2019 was 6,250. Lin expects additional warranty costs to be paid during 2020. Required: 1. For each item, determine if it results in a temporary or permanent difference. If the item results in a temporary difference, determine if it results in a deferred tax asset or deferred tax liability. 2. For each item, determine if it initially results in pretax financial income being greater than or less than taxable income. 3. Next Level Discuss why permanent differences do not impact future periods taxable income and how these differences affect tax rates.