G Assume that Bonhomme's pretax accounting income in 2023 is $72,000. There is no difference between Bonhomme's reported accounting and tax depreciation expense in 2023. Bonhomme sells more lawnmowers in 2023 with estimated warranty costs of $38,000. Actual warranty costs incurred in 2023 are $26,000. Bonhomme's investment in tax-free municipal bonds earns only $22,000. 7 Prepare the journal entry necessary to record income taxes at the end of 2023.

G Assume that Bonhomme's pretax accounting income in 2023 is $72,000. There is no difference between Bonhomme's reported accounting and tax depreciation expense in 2023. Bonhomme sells more lawnmowers in 2023 with estimated warranty costs of $38,000. Actual warranty costs incurred in 2023 are $26,000. Bonhomme's investment in tax-free municipal bonds earns only $22,000. 7 Prepare the journal entry necessary to record income taxes at the end of 2023.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter3: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 55P

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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)
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29. Matthew Company started to manufacture in 2012 copying machines that are sold on the installment basis. Matthew recognizes revenue when equipment is sold for financial reporting purposes and when installment payments are received for tax purposes. In 2012, Matthew recognized gross profit of P10,000,000 for financial reporting purposes and P6,000,00 for tax purposes. The amounts of gross profit expected to be recognized for tax purposes in 2013 and 2014 is P2,000,000 each. Matthew guarantees the copying machines for two years. Warranty costs are recognized on the accrual basis for financial accounting purposes and when paid for tax purposes. Warranty expense accrued in 2012 is P2,800,000 but only P1,000,000 of the warranty cost was paid in 2012. It is expected that in 2013 and 2014, P1,100,000 and P700,000, respectively, of warranty costs will be paid. In addition, during 2012, P500,000 interest, net of 20% final income tax, was received and earned, and P200,000 insurance premium on…
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