What is the net tax consequences of these dispositions?
Q: Net PRresnt value- Citron Industries has a project with the following projected cash flow Initial…
A: Net Present Value- The net present value demonstrates its applicability in capital budgeting. It…
Q: As Reported Annual Balance Sheet Report Date Scale Assets Cash & cash equivalents Receivables, net…
A: Introduction: Working capital: Deduction of current liabilities from Current Assets value derives…
Q: comparing the cash balances on its bank statement with the cash balances in the accounting records…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: ip to question [The following information applies to the questions displayed below.]…
A: Master Budget: It is the summary of all the budgets i.e. sales budget, production budget,…
Q: Prepare the journal entry for the following transactions (1) Geysler Company sold some old equipment…
A: Initial cost of equipment= $30000 Accumulated depreciation= $25000 Carrying value of equipment=…
Q: Use the 2016 marginal tax rates to compute the income tax owed by the following person. Single male,…
A: Income tax owed is the value which is computed after applying the tax rate on the taxable income.…
Q: XYZ Company reported net income of P9,000,000 for the current year. Changes occurred in certain…
A: A cash flow statement indicates cash inflow and cash outflow information of a particular time…
Q: P2-3 (Algo) Recording Transactions in T-Accounts, Preparing the Balance Sheet from a Trial Balance,…
A:
Q: ARE YOU RIGHT OR WRONG? 1. Ideally, each salary check was handed to the employee, who signs a…
A: Introduction:- Payroll check is issued for the payment of salary. Payroll is the process of paying…
Q: Tantrum Company provided the following information in relation to accounts receivable at year-end:…
A: Doubtful accounts: Doubtful accounts means accounts receivable that might become uncollectible or…
Q: Economics (a) Which would you choose as the priority for ethical behaviour in the accounting…
A: Comment; We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: What are the strengths and weaknesses that you see in the AIS system and ways that you would improve…
A: AIS stands for accounting information system that is a computer based method used by the company in…
Q: produces lamps and home lighting fixtures. Its most popular product is a brushed aluminum desk lamp.…
A: When plantwide overhead rate is used it is calculated by dividing the total estimated overhead by…
Q: $125,930 $125,930 The president of Anderson Company has asked you to close the books (prepare and…
A: The closing entries are prepared to close the temporary accounts of the business such as revenue and…
Q: Which of the following accounts are used as income statement-like accounts in investment trust…
A: Revenues and expenses accounts are used as income statement-like accounts in investment trust funds,…
Q: Compute Charlotte's child and dependent tax credit. Charlotte's child tax credit is $8,000, of which…
A: Given in the question: The Childs which are dependent upon Charlotte are four child’s, the age of…
Q: [The following information applies to the questions displaye Oak Mart, a producer of solid oak…
A: Using absorption Costing method, the fixed costs are added to the cost of product and fixed cost is…
Q: By what amount did working capital change?
A: Working capital is the excess of current assets over current liabilities. Working capital = Current…
Q: Zannel plc is considering a new project to produce a revolutionary surveillance device. The initial…
A: NPV (Net Present Value) represents the difference between the present value of future expected cash…
Q: A farm that produces corn is looking to hedge their exposure to price fluctuations in the future. It…
A: Loss on future contract = [Actual market price on Sept 30 - Future contract per bushel] x 44,000 =…
Q: A lorry load of material of mixed goods was purchased for $.1,00,000 Later on these were sorted out…
A: Sales price is the actual price on which goods are being sold in the market. Cost of sales means…
Q: this is the old way using income summary, i need the new way.
A: Closing Entries - Closing entries are required to close the temporary accounts after making…
Q: JOURNA entries 21- Sent a bill to R. Hernandez, P2, 500 for car service rendered at his wedding. Gas…
A: Journal entries recording is the first step in accounting cycle process. Under this atleast one…
Q: Trio Company reports the following information for the current year, which is its first year of…
A: Absorption costing - under this method direct materials , direct labor , variable manufacturing…
Q: . Prepare journal entries for Axel Corp. to record the acquisition of Wheal Company
A: The acquisition is a form of consolidation between two or more companies. When one company takes…
Q: Careers in accounting that you can go in Types of businesses and business ownership What are some of…
A: Seeking a career in accounting is a wise decision, as the accounting employment market is booming.…
Q: Computing Ratios The following information was obtained from recent annual reports on Form 10-K for…
A: Debt Equity ratio = ( Total Liabilities)/(Total Shareholders equity)
Q: On April 15 of the current year, a fire destroyed the entire uninsured inventory of a retail store.…
A: >Ending inventory is the amount of inventory left on hand at the end of period. >Due to…
Q: спу на tuty is managed by Tara Perkins. Show the journal entries that would be recorded in the…
A: Date Account Debit Credit General Fund A/C Dr $100,000 To Electric…
Q: March Issued 3,000 share of Common Stock, $2 par for $15 per share.
A: Introduction: Journals: All the business transactions are to be recorded in Journals. Another name…
Q: Teal Mountain Inc. is building a new hockey arena at a cost of $2,900,000. It received a down…
A: Present value function: Pmt $2,320,000*10.5% $243,600 Nper Number of years per bond…
Q: 2. The gift tax payable of Mr. Alba on the July 14 donation is Mr. and Mrs. Alba gave the following…
A: As per Section 98 There shall be levied, assessed, collected and paid upon the transfer by any…
Q: On January 1, 2011, Plank Company purchased 80% of the outstanding capital stock of Scoba Company…
A: Consolidation- Consolidation is the process of merging two or more enterprises, organizations, or…
Q: Income obtained from the Inc
A: A balance sheet refers to the statement showing the money transactions and property which the…
Q: 1. Why does the need for an accounting period cause problems?
A: An accounting period is a period of time that encompasses various accounting tasks and can be a…
Q: PROBLEM 2 Fleming Sign Company uses the allowance method in accounting for uncollectible accounts.…
A:
Q: Computing Depreciation under Alternative Methods Strong Metals Inc. purchased a new stamping machine…
A: Depreciation is an accounting technique for distributing a tangible or fixed asset's cost over its…
Q: On January 1, 2022, Yencay, Inc. signs a 10-year noncancelable lease agreement to lease a storage…
A: The question is related to Accounting for lease. In a lease arrangement, the lessor determines the…
Q: GAS" Company does not segregate sales and sales taxes at the time of sale. The sales register total…
A: Sales and Sales tax both are different, sales is a part of revenue whereas Sales tax is a part of…
Q: a.) In January 2021, NBDB incurred the following expenses for the salaries of its regular employees…
A:
Q: what challenges and opportunities generational diversity can represent for a company. Give two…
A: Strategy- A strategy is a plan devised to achieve a specific goal. It assists in making decisions…
Q: 5 345 2 hing x (11) Your SID=462122509 Using the MACRS rates from the following table, what is the…
A: Business organizations are required to charge the depreciation expense so that the assets are shown…
Q: For purposes of capitalization of borrowing cost, which of the following is not a qualifying asset?…
A: IAS 23 is one of the accounting standard which is used for borrowing costs. This standard specifies…
Q: Which of the following statements best differentiates multinational firms from domestic firms? a.…
A: A multinational corporation is a company that operates in its home country, as well as in other…
Q: World Enterprises is determined to acquire Intous Ltd through exchanging stocks. World Enterprises…
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…
Q: 1. A company uses the indirect method to determine its cash flows from operating activities. Use the…
A: Introduction: Statement of operating activities: All cash in and out flows for day to day activities…
Q: A and B formed a partnership. The partnership agreement stipulates the following: • Annual salary…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: You must evaluate a proposal to buy a new milling machine. The purchase price of the milling…
A: Last year's feasibility cost treated as a sunk cost which means already incurred in past by the…
Q: JFL is a CCPC company and has offered Gene the following stock option incentive as part of his…
A: JFL is a CCPC company and has offered Gene a stock option incentive as part of his employment…
Q: Certain adjusting entries made at the end of an accounting period are reversed at the beginning of…
A: The process of recording business transactions in the books of accounts for the first time is…
Step by step
Solved in 3 steps
- 6. On December 31, 2021, ABC has earned financial income before tax of P3,240,850. The tax rate applicable for the current and future years is 30%. For purposes of determining the taxable income, the following items are considered for analysis and reconciliation: On January 1, 2021, ABC has acquired a depreciable property amounted to P1,000,000. For financial accounting purposes, it uses straight line method to depreciate it and sum of the year’s digit method for income tax purposes (with depreciation rate from year 1 to year 10 of 10/55, 9/55, 8/55, 7/55, 6/55, 5/55, 4/55, 3/55, 2/55, 1/55, respectively). The useful life of the asset is 10 years with no residual value. 3 years prepaid rent of P600,000 (P200,000 a year) paid December 31, 2021 that is applicable for the next 3 years starting 2022. Dividend income (received in cash) of P250,000 that is subject to 20% tax rate. Interest income on deposit (already credited to ABC’s deposit account) of P150,000 with 20% applicable tax…3. On December 31, 2021, ABC has earned financial income before tax of P3,240,850. The tax rate applicable for the current and future years is 30%. For purposes of determining the taxable income, the following items are considered for analysis and reconciliation: a. On January 1, 2021, ABC has acquired a depreciable property amounted to P1,000,000. For financial accounting purposes, it uses straight line method to depreciate it and sum of the year's digit method for income tax purposes (with depreciation rate from year 1 to year 10 of 10/55, 9/55, 8/55, 7/55, 6/55, 5/55, 4/55, 3/55, 2/55, 1/55, respectively). The useful life of the asset is 10 years with no residual value. b. 3 years prepaid rent of P600,000 (P200,000 a year) paid December 31, 2021 that is applicable for the next 3 years starting 2022. c. Dividend income (received in cash) of P250,000 that is subject to 20% tax rate. d. Interest income on deposit (already credited to ABC's deposit account) of P150,000 with 20%…Dainty included the following items in pretax accounting income of 2020:• Litigation loss estimated at P75,000 which will become tax deductible when settled in the future.• Goodwill impairment of P87,500 which will never be deductible for income tax expense.• Revenue from an installment sale of P112,500, which will be recognized as part of taxable income as received over the next three years.• Pretax financial income is P437,500. How much should be the pretax financial income subject to income tax?
- This term refers to an asset sold for more than its original value. Using taxable income, it is based on tax tables or tax rate schedules. During this transaction, you can exclude the first $250,000 ($500,000 for married taxpayers) of gain on sale. This term refers to passive income offset. This term essentially includes all income subject to federal tax.Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: ($ in thousands) _____ Situation________ 1 2 3 4 Taxable income $100 $232 $228 $308 Future deductible amounts 16 20 20 Future taxable amounts 16 16 44 Balance (s) at…Eight independent situations are described below. Each involves future deductible amounts and/or future taxable amounts: ($ in millions) Temporary Differences Reported First on: The Income Statement The Tax Return Revenue Expense Revenue Expense 1. $40 2. $40 3. $40 4. $40 5. 35 40 6. 40 35 7. 35 40 30 8. 35 40 25 30 Required:For each situation, determine taxable income, assuming pretax accounting income is $300 million.
- Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: ($ in thousands) Situation 1 2 3 4 Taxable income $ 116 $ 248 $ 260 $ 356 Future deductible amounts 16 20 20 Future taxable amounts 16 16 60 Balance(s) at beginning of the year: Deferred tax asset 2 17 4 Deferred tax liability 8 2 The enacted tax rate is 25%. Required: For each situation, determine the following: Note: Enter your answers in thousands rounded to one decimal place (i.e. 1,200 should be entered as 1.2). Negative amounts should be indicated by a minus sign. Leave no cell blank, enter "0" wherever applicable.The following facts relate to Crane Corporation. Deferred tax liability, January 1, 2025, $30,600. Deferred tax asset, January 1, 2025, $10,200. Taxable income for 2025,$107,100. Cumulative temporary difference at December 31,2025 , giving rise to future taxable amounts, $234,600. Cumulative temporary difference at December 31,2025 , giving rise to future deductible amounts, $96,900. Tax rate for all years, 20%. No permanent differences exist. The company is expected to operate profitably in the future. (a) Compute the amount of pretax financial income for 2025. Pretax financial income $Mang Panday wants to determine the taxability of the foregoing. How much is the total amount of passive income which is subject to final tax? A. P690,000 B. P540,000 C. P530,000 D. P500,000
