pls answer the following question Sunland Corporation, a private company, began operations on January 1, 2020. During its first three years of operations, Sunlandreported net income and declared dividends as follows:202020212022Net income$60,000135,000161,000Income before income taxDividends declared$050,000The following information is for 2023:Effective tax rate50,000Correction of prior period error: understatement of 2021 depreciation expense (before tax)Cumulative increase in prior years' income from change in inventory method (before tax)Dividends declared (of this amount, $25,000 will be paid on January 15, 2024)$360,00045,00055,000100,00040%Prepare a 2023 statement of retained earnings for Sunland. The company follows ASPE. (List items that increase retained earnings firstafter adjusted balance.) Prepare a 2023 statement of retained earnings for Sunland. The company follows ASPE. (List items that increase retained earnings firstafter adjusted balance.)V:7:Sunland CorporationStatement of Retained EarningsLA$

Retained earnings are the earnings of the company which have been accumulated over a period of time.…

Answered: Sunland Corporation, a private company,…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 48P

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Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and taxable income for 2020. The prior period adjustment was the result of an error in calculating bad debt expense for 2019. The current tax rate is 30%, and no change in the tax rate has been enacted for future years. When the company applies intraperiod income tax allocation, the prior period adjustment will be shown on the: a. income statement at 12,000 b. income statement at 8,400 (net of 3,600 income taxes) c. retained earnings statement at 12,000 d. retained earnings statement at 8,400 (net of 3,600 income taxes)
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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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.

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Sunland Corporation, a private company, began operations on January 1, 2020. During its first three years of operations, Sunland reported net income and declared dividends as follows: