HOH INCOME Salary Business Income Interest Income from taxable bon Tax-exempt Bond interest Total Income Deductions Buusiness Expenses Itemized deductions Total Deductions 2020 100,000.00 25,000.00 10,000.00 5,000.00 140,000.00 9,500.00 20,000.00 29,500.00 2021 100,000.00 25,000.00 10,000.00 5,000.00 140,000.00 9,500.00 20,000.00 29,500.00 Compute Beverley's marginal, average, and effective tax rates for both 20-

HOH INCOME Salary Business Income Interest Income from taxable bon Tax-exempt Bond interest Total Income Deductions Buusiness Expenses Itemized deductions Total Deductions 2020 100,000.00 25,000.00 10,000.00 5,000.00 140,000.00 9,500.00 20,000.00 29,500.00 2021 100,000.00 25,000.00 10,000.00 5,000.00 140,000.00 9,500.00 20,000.00 29,500.00 Compute Beverley's marginal, average, and effective tax rates for both 20-

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter20: Corporations And Parterships

Section: Chapter Questions

Problem 6DQ

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Taxpayer: Domestic Corporation (SME) It year of operation: 2017 Taxable period: 2021 Year 2017 2018 2019 2020 2021 Gross Income 7,000,000 8,000,000 8,000,000 5,000,000 7,000,000 Deductions 8,000,000 7,500,000 6,000,000 6,000,000 5,900,000 Net (1,000,000) 500,000 2,000,000 (1,000,000) 1,100,000 how much corporate income tax should paid in 2021? A. 275,000 B. 50,000 C. 25,000 D. 20,000 E. Zero
l-Itihad Corporation Balance SheetDecember 31, 2019AssetsLiability & EquityCurrent AssetsCurrent LiabilityCash$5,000Accounts payable22,000Short term securities10,000Accrual Account8,000Account Receivables30,000Short term debt6,000Inventory32,000Total Current Liability36,000Long-term debt40,000Total Current Assets77,000TotalLiability76,000Long term AssetsEquityNet Property & equipment70,000CommonStocks64,000Retained earnings17,000Total Equity81,000Total Liability and Equity157,000Other assts 10000Total Assets157,000Sur Corporation Income StatementDecember 31, 2019Other Financial information of Sur corporation December 31, 2019Net sales (revenue)$150,000· Average Number of Common shares outstanding 16,000 Shares· Market price of Common share $3.5Cost of goods sold80,000Gross profit70,000Operating expenses30,000EBIT- (Operating profit)40,000Interest expense10,000EBT- ( Earnings before taxes)30,000Income tax 10,000Net Income (net profit)20,000You have to find the following ratios…
Taxpayer: Domestic Corporation (SME) It year of operation: 2017 Taxable period: 2021 Year 2017 2018 2019 2020 2021 2022 Gross Income 7,000,000 8,000,000 8,000,000 5,000,000 7,000,000 7,000,000 Deductions 8,000,000 7,500,000 6,000,000 6,000,000 5,900,000 6,000,000 Net (1,000,000) 500,000 2,000,000 (1,000,000) 1,100,000 1,000,000 Compute the corporate income tax should be paid in 2022?
An example of an item which is not a liability isa. The portion of a long termdebt due within one yearb. Estimated warranty costsc. Dividends payable common shares of the issuing corporationd. Customers’ deposits Which of the following statements relating to the recognition of liabilities is falseI. Liabilities are recognized when obligations to transfer assets or provide services in the future are incurred in exchangesII. Liabilities arising from non-reciprocal transfers are recognized when the corresponding money, goods, or services are received.III. Mutually unexecuted contracts are generally not recognized as accounting liabilitiesa. I only c. I and II onlyb. II only d. I, II, and III The following statements relate to liabilities. Which statement is true?I. Liabilities may also be measured by estimates of a definitive character when the amount of the liability cannot be measured preciselyII. A long term, non-interest bearing note payable should be recorded at present discounted…
Dodd Co.'s debt securities at December 31 included available-for-sale securities with a cost basis of $24, 000 and a fair value of $30,000. Dodd's income tax rate was 20% . What amount of unrealized gain or loss should Dodd recognize in its income statement at December 31?
Microsoft’s 2020 10-K includes the following information relevant to its available-for-sale investments in Note 17—Accumulated Other Comprehensive Income (Loss): Year Ended June 30, 2020 2019 2018 Balance, beginning of period $1,488 $(850) $1,825 Unrealized gains (losses), net of tax of $1,057, $616, and $(427) 3,987 2,331 (1,146) Reclassification adjustments for (gains) losses included in other income (expense), net 4 93 (2,309) Tax expense (benefit) included in provision for income taxes (1) (19) 738 Cumulative effect of accounting changes 0 (67) 42 Balance, end of period $5,478 $1,488 $(850) Answer the following questions by referring to the disclosure note above: Prepare a journal entry to record unrealized gains for 2020. (Hint: $3,987 is net of tax effects, so you will need to add back tax effects to show the amount of pretax unrealized gain.) Prepare a journal entry to record Microsoft’s reclassification…
David Co has in issue 4% irredeemable debt quoted at $155 (ex-interest). The corporation tax rate is 35%.Required:-Calculate the return required by the debt providers and the cost ofdebt to David Co.
Any unamortized premium should be reported on the balance sheet of the issuing corporation as a. paid-in capital b. a direct deduction from the face amount of the bonds in the Liabilities section c. an addition to the face amount of the bonds in the Liabilities section d. a direct deduction from retained earnings
G’s investment account relates to its debt investments and its equity investments. For balance sheet presentation, G includes any separate investment-related adjustment accounts with the investment account. Information about G’s investments follows: o On 06-30-21, G purchased 45, $1,000 3% bonds when similar bonds were paying 3.5%. G incurred and paid $600 of bond purchase-related costs. The bonds were dated 06-30-21, pay interest each June 30 and December 31, and mature on 06-30-25. G classified the bonds as a trading investment. As of 12-31-21, the bonds traded at 99. o On 06-30-19, G purchased 40, $1,000 5% bonds when similar bonds were paying 5%. G incurred and paid $400 of bond purchase-related costs. The bonds were dated 06-30-19 and pay interest each June 30 and December 31 and mature on 06-30-24. G classified these bonds as an available-for-sale investment. The bonds were trading at the following amounts as of the following dates:12-31-19 10012-31-20 10212-31-21 101
Company Z has a deposit with ABC Bank. It obtained a loan from ASAP Financing Corp. in connection with the operation of its business. For the year 2021, assume the following:Company Z’s Net Income before Interest Expense (subject to 25%), P2,500,000Interest Income (from ABC Bank, gross of FWT), P480,000FWT on Interest Income, P96,000Interest Expense, P200,000How much is the taxable income of Company Z for 2021 after deducting interest expense?
A Corporation is engaged in the trading business. The reported income and expenses for taxable year 2019 show: Sales P10,000,000 cost of sales 6,000,000 general business expenses 1,000,000 Interest on time deposit (gross) 100,000 Interest expense on loans payable 180,000 The net taxable income is A. 2,820,000 B. 2,853,000 C. 2,862,000 D. 2,858,000
How much should be recorded as the purchase price of theindividual PPE items: 4. Issued bonds with face value of P5,000,000 and fair value ofP5,100,000 to purchase equipment with a fair value ofP4,900,000.