The CFO of Pfizer Antivirus Ltd has provided you the following data: Accounting profit (loss) ($74,500) After debiting as expense: Goodwill impairment loss $5,000 Entertainment costs $15,000 Donation to political party $30,000 Depreciation expense – plant $50,000 For tax purposes: Tax depreciation for plant $25,000 Long-service leave paid $10,000 Prepare the Current tax worksheet and the Journal entry to record current tax liability on 30 June 2020.

The CFO of Pfizer Antivirus Ltd has provided you the following data: Accounting profit (loss) ($74,500) After debiting as expense: Goodwill impairment loss $5,000 Entertainment costs $15,000 Donation to political party $30,000 Depreciation expense – plant $50,000 For tax purposes: Tax depreciation for plant $25,000 Long-service leave paid $10,000 Prepare the Current tax worksheet and the Journal entry to record current tax liability on 30 June 2020.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter14: Taxes On The Financial Statements

Section: Chapter Questions

Problem 11DQ

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Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it Paid $500 for ordinary repair Purchased a patent for $45,000 cash Paid $200,000 cash for addition to an existing building Paid $60,000 for monthly salaries Paid $250 for routine maintenance on equipment Paid $10,000 for extraordinary repairs If all transactions were recorded properly, what amount did Jada capitalize for the year, and what amount did Jada expense for the year?
Duck, an accrual basis corporation, sponsored a rock concert on December 29, 2019. Gross receipts were 300,000. The following expenses were incurred and paid as indicated: Because the coliseum was not scheduled to be used again until January 15, the company with which Duck had contracted did not perform the cleanup until January 810, 2020. a. Calculate Ducks net income from the concert for tax purposes for 2019. b. Using the present value tables in Appendix H, what is the true cost to Duck if it had to defer the 100,000 deduction for the performers until 2020? Assume a 5% discount rate and a 21% marginal tax rate in 2019 and 2020.
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Ngo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs amounted to $1,200; and one-year registration of the truck was $100. What is the total amount of costs that should be capitalized? A. $60,600 B. $66,100 C. $54,000 D. $59,400
Johnson, Incorporated had the following transactions during the year: Purchased a building for $5,000,000 using a mortgage for financing Paid $2,000 for ordinary repair on a piece of equipment Sold product on account to customers for $1,500,600 Purchased a copyright for $5,000 cash Paid $20,000 cash to add a storage shed in the corner of an existing building Paid $360,000 in monthly salaries Paid $25,000 for routine maintenance on equipment Paid $110,000 for major repairs If all transactions were recorded properly, what amount did Johnson capitalize for the year, and what amount did Johnson expense for the year?
Bellago Ltd made an accounting profit before tax of $75,000 for the year ended 30 June 2020.The following items were included in the accounts: Donations to political parties , non deductible 4,000 Depreciation machinery ,20% 15,000 Annual leave expense 5,800 Rent revenue 8,000 Goodwill amortised , non deductible 12,000 For tax purposes the following applied : Depreciation rate for machinery 15% Annual leave paid 4,500 Rent received 12,000 Income tax rate…
Lance is entering an invoice for a new item of equipment in the accounts. The invoice shows the following costs: Water treatment equipment $39,800 Delivery $1,100 Maintenance charge $3,980 Sales tax $7,854 Invoice total $52,734 Lance is registered for sales tax. What is the total value of capital expenditure on the invoice?
Windy Ltd has requested that you prepare the tax-effect accounting information for the year ended 30 June 2021. The following has been extracted from their internal reports: -Accounting profit before tax for the year................................................... $855,000 -Expenses brought to account included: Depreciation – plant................................................................................... $93,000 Impairment loss on goodwill....................................................................... $13,500 Long service leave...................................................................................... $13,000 - Accumulated depreciation on plant for tax purposes was $130,000 on 30 June 2020 and $270,000 on 30 June 2021. There were no additions or disposals of plant during the year. - Bad debts of $14,700 were written off during the year against the Allowance for Doubtful Debts. - On 1 January 2021 the company income tax rate was increased from 30% to…
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For the events described below, select the taxrelated term from the following list that best applies: gross income, depreciation, operating expense, taxable income, income tax, or net operating profit after taxes. (a) A corporation reports that it had a negative $1,750,000 net profit on its annual income statement. (b) An asset with a current book value of $120,000 was utilized on a new processing line to increase sales by $200,000 this year. (c) A machine has an annual write-off of $21,000. (d ) The cost to maintain quality assurance equipment during the past year was $75,000. (e) A supermarket collected $24,000 in lottery ticket sales last year. Based on the winnings paid to individuals holding these tickets, a rebate of $250 was sent to the store manager. ( f ) An asset with a book value of $8000 was retired and sold for $8450. (g) The cost of goods sold in the past year was $3,680,200. (h) An over-the-counter software system will generate $420,000 in revenue this quarter
ou are working with an accounting firm. Sussie, who is representing Suss Co, needs advice about depreciating assets. She asks; what are depreciating assets? What are the different ways to calculate the declining value of depreciating assets? Furthermore, Suss Co has aggregated turnover of $ 2 billion. In December 2021, Suss Co purchased a machine for $4m, which was commenced immediately for an income-producing purpose. What tax does the Suss Co claim?

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bartleby, a Learneo, Inc. business

Accounting profit (loss)	($74,500)
*After debiting as expense:*
Goodwill impairment loss	$5,000
Entertainment costs	$15,000
Donation to political party	$30,000
Depreciation expense – plant	$50,000
*For tax purposes:*
Tax depreciation for plant	$25,000
Long-service leave paid	$10,000