he 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 )

he 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 )

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 6MCQ: Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense...

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Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense for 2019 if the units-of-production method were used ( Note: Round your answer to the nearest dollar)? a. $179,400 b. $184,000 c. $218,400 d. $224,000
Spotless Limited is a company operating in the household cleaning industry. The following information has been presented to you. Extracts from the Balance Sheet as at 31 December 2018. 2018 2017 R R Property, plant and equipment x 355 000 Expenses 10 000 0 Income tax received in advance (taxable in the year of receipt) 28 000 15 000 Additional information: * The tax base of the property, plant and equipment balance at 31 December 2017 was R290 000. * During 2018 depreciation was R35 000 and wear and tear allowed was R25 000. There was no other movement of property, plant and equipment during 2018. * Profit before tax is R300 000. * Dividend income of R50 000 was earned during 2018. * There are no other temporary or permanent differences other than those evident from the information provided. * The normal income tax rate is 30% Required: a. Calculate the current income tax and deferred tax for the year ended 31 December 2018. b. Journalese the current and deferred…
Suppose a computer software developer for a certain company purchased a computer system for $75,000 on April 27, 2017. The computer system is used for business 100% of the time. The accountant for the company elected to take a $30,000 Section 179 deduction, and the asset qualified for a special depreciation allowance. (a) What was the basis for depreciation (in $) of the computer system? (See Table 17-4.) $ (b) What was the amount (in $) of the first year's depreciation using MACRS? $ (Table 17-4) Certain QualifiedAsset Placed into Service Special AllowanceSeptember 11, 2001–May 5, 2003 30%May 6, 2003–January 1, 2005 50%December 31, 2007–September 27, 2017 50%September 28, 2017–December 31, 2022 100%
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The following information is available for the first three years of operations for Cooper Company: Year Taxable Income 2017 $500,000 2018 375,000 2019 400,000 On January 2, 2017, heavy equipment costing $800,000 was purchased. The equipment had a life of 5 years and no salvage value. The straight-line method of depreciation is used for book purposes and the tax depreciation taken each year is listed below: Tax Depreciation 2017 2018 2019 2020 Total $264,000 $360,000 $120,000 $56,000 $800,000 The enacted tax rates are 40% for all years. Instructions Prepare a schedule comparing depreciation for financial reporting and tax purposes.
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Takatak, Inc., uses the group depreciation method for its furniture account. The depreciation rate used for furniture is 21%. The balance in the furniture account on December 31, 2017, was P125,000, and the balance in Accumulated Depreciation-Furniture was P61,000. The following purchases and dispositions of furniture occurred in 2018 (assume that all purchases and disposals occurred at the beginning of each year).Assets SoldAssets Purchased Cost Selling PriceP35,000 P27,000 P8,000The carrying amount of furniture at December 31, 2018 is ?
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A Ltd purchased four motor vehicles for $50000 each on 1/1/2015. The company depreciates motor vehicles on a straight-line basis. Their expected useful life is six years.Each motor vehicle has a residual value of $5000. For tax purposes, the motor vehicles depreciate at 20% per annum on a straight-line basis. Accounting profit before tax (PBT) for the years 2015 to 2020 is $60000 per annum. The tax rate is 12.5%. Required Calculations of current and deferred tax Related figures to be included in the financial statements for the years 2015 to 2020
Wyhowski Inc. reported income from operations, before taxes, for 2015-2017 as follows: 2015 $425,000 2016 486,000 2017 570,000 When calculating income, Wyhowski deducted depreciation on plant equipment. The equipment was purchased on January 1, 2015, at a cost of $177,000. The equipment is expected to last three years and has a(n) $15,000 salvage value. Wyhowski uses straight-line depreciation for book purposes. For tax purposes, depreciation on the equipment is $101,000 in 2015, $41,000 in 2016, and $20,000 in 2017. Wyhowski's tax rate is 35%. Required: Enter all amounts as positive numbers. 1. How much did Wyhowski pay in income tax each year? If required, round all calculations to the nearest dollar. Year Taxes Paid 2015 $ 2016 $ 2017 $ 2. How much income tax expense did Wyhowski record each year? Year Income Tax Expense 2015 $ 2016 $ 2017 $ 3. What is the balance in the Deferred Income Tax account at the end of 2015, 2016, and 2017? If your…