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A: Solution Given Pre tax income 100,000 Tax rate 30% Depreciation in the financial…
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A: Tax expense is the amount of tax that the entity has paid on its taxable income.
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A: Interest income from depository accounts is exempt from tax. hence it is a permanent difference. He…
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A: In any case of interest income of bank with remaining maturity period of 5 years or less than 5…
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A: The effective tax is hypothetical tax rate = 21% Which is to be adjusted for permanent differences
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A: EVA (economic value added) refers to the concept which computes the economic profit of a company.
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A: Current debt 5 million Interest @ 16% 0.8 million Let's put each of the conditions for the…
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A: The percentage of the income of an individual that is subject to tax refers to the effective tax…
Q: The Dakota Corporation had a 2021 taxable income of S20,000,000 from operations after all operating…
A: Formula: Income tax liability = Taxable income x Tax rate
Q: As of the end of the current tax year, Mad Corp. has accumulated E&P of $31,000 and current E&P of…
A: The accumulated Earnings & profit is the amount of Earnings & Profit in previous years which…
Q: For the current year ($ in millions), Centipede Corp. had $80 In pretax accounting Income. This…
A: Correct answer is A. $70 million
Q: MYRRH Company reported P9,000,000 income before provision for income tax. The following data are…
A: Interest income from depository accounts is exempt from tax. hence it is a permanent difference. He…
Q: Ravi Ltd. issued 1,000, 10% Debentures of Rs. 100 each redeemable after 10 years. The tax rate is…
A: Cost of debt would be the effective rate at of interest which company will pay on the debentures…
Q: 2. Debtor Corporation shows the following data during taxable year: Sales P 500,000 Interest Income,…
A: Deductions means those items that are deducted from the gross income of the company. The deductions…
Q: On June 30, 2002, Free Company had outstanding 8%, P1,000,000 face amount, 15-year bonds maturing on…
A: Carrying Amount of Bond = Face value of Bond - (Unamortized Bond discount + Unamortized bond cost )…
Q: %Find the cost of existing debentures assuming 40 % tax rate. a)8.02% b)7.12% c)5.54% d)11.05%
A: A debenture is a certificate acknowledging the loan. There is a fixed amount of interest to be paid…
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A: The correct answer to the question should be none of the above. Current debt 5 million Interest…
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A: Depreciation are different in books of accounts and in income tax act. While calculating book profit…
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A: Realized Gain = Cash - Cost Tax amount = Realized Gain * Tax rate
Q: Abitz Corporation has the following pretax operating income in its first three quarters of 20X5. The…
A:
Q: January 1, 2021. During the year, Bravo reports income of $150,000 and pa idends of $30,000.…
A: Tax liability means the aggregate amount of the tax debt owed through the company, individual and…
Q: Firm AB and Firm YZ are identical except for their debt-to-total-assets rations (D/TAs) and interest…
A: Computation:
Q: Q1. As of the end of the current tax year, Mad Corp. has accumulated E&P of $31,000 and current E&P…
A: SOLUTION- AMOUNT OF TAXABLE DIVIDEND= DISTRIBUTION TO SHAREHOLDERS - ACCUMULATED E & P - CURRENT…
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A: Unrealized gain or loss on investment: Investment gains that are not yet realized are gains that…
Q: MYRRH Company reported P9,000,000 income before provision for income tax. The following data are…
A: Earnings before tax = P9,000,000 Rent received in advance = P2,000,000 Corporate income tax rate =…
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A: Tax is the liability which has to be paid by the individual and the corporation to the Federal…
Q: 3. ABC corp paid the following taxes which is incurred in connection with business; Community tax of…
A: Deductible tax expense refers to the allowance provided by the government on the tax levied on an…
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A: Income tax refers to the form of tax which is imposed by the governments on the income generated by…
Q: Corporate After-Tax Yield The Shrieves Corporation has $15,000 that it plans to invest in marketable…
A: Yield on Bond = 5.9% Dividend yield = 5.0% Yield on Municipal bonds = 4% Tax rate = 21% 50% of…
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A: Minimum corporate income tax (MCIT) in total income, beginning in the fourth tax year following the…
Q: Corporation sold P50 million of P1,000 par value, 12% coupon bonds. The bonds were sold at a…
A: The bonds provide the company the advantage of tax-deductibility of interest.
Q: Roy invested P1,000,000 in the "tax-free" corporate bonds of RBC Corporation The bond pays 8.75%…
A: Withholding tax:-It is the tax amount paid by the person on its taxable income as per the rate…
Q: Oak Corporation holds the following general business credit carryovers: 2016 $5,000 2017 15,000 2018…
A: The general business credit carryover refers to the non-refundable credit amount which is restricted…
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A: Earnings & Profits: Earnings and profits are bookkeeping terms pertinent to investors in…
Q: (Corporate income tax) Meyer Inc. has taxable income (earnings before taxes) of $284,000.…
A: Tax Liability: Tax liability refers to the amount of money owing by a person, a corporation, or…
Q: On June 30, 2002, Free Company had outstanding 8%, P1,000,000 face amount, 15-year bonds maturing on…
A: Solution: Carrying value of bond on June 30,2002 = P1,000,000 - P35,000 - P10,000 = P955,000
Q: GUCCI Corp. in its first year of operations has the following differences between the carrying value…
A: The tax differences that may arise due to the effect of the time difference are known as deferred…
Q: Pecorino Company had pretax financial income of P2,500,000 in the current year. The entity made…
A: Solution: Taxable income for the year= Pretax financial income - Tax depreciation in excess of…
Q: Classify the items for deduction in the following scenarios. 2. Debtor Corporation shows the…
A: Itemized deductions are those deductions which allow the person to deduct the designated expenses…
Q: Determine the (after-tax) component cost of a $50 million debt issue that the Mattingly Corporation…
A: Tax rate =40% Yield rate = 12% Cost of debt after tax = Yield rate *(1-Tax rate)
Q: Using the same information, what is the amount of the S Corporation premium if the cash flow for the…
A: Cash flow is basically the inflow and outflow of money, where we deal with operating activities,…
Q: Camio Inc reported a net income after tax of $1.3 Billion for the year 2029. During the same year,…
A: In the given question the net income after tax of $1.30 billion is reported for the year 2009. After…
Q: Pecorino Company had pretax financial income of P2,500,000 in the current year. The entity made…
A: Solution: Amount of total tax expense = (Pretax financial income - Interest income) * tax rate
Q: Pecorino Company had pretax financial income of P2,500,000 in the current year. The entity made…
A: Solution: Taxable income for the year = Pretax income - Tax depreciation in excess of financial…
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- Domanico Co., which produces and sells biking equipment, is financed as follows: Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is (a) 600,000, (b) 800,000, and (c) 1,200,000.Brower Co. is considering the following alternative financing plans: Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming that income before bond interest and income tax is 2,000,000.On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest payments are paid annually, each interest payment will be ________. A. $120,000 B. $60,000 C. $7,500 D. $15,000
- Ravi Ltd. issued 1,000, 10% Debentures of Rs. 100 each redeemable after 10 years. The tax rate is 35%. The floating cost is 4% of Issue price. Determine after tax cost of the debt if the debt is issued at 10% discount a. 7.89 b. 8.43 c. 8.95 d. 8.67CC Company's 5-year bonds are selling at P820. The bonds face amount is P1,000 and pays an annual interest rate of 6%. CC's tax rate is at 30%. What is CC's cost of debt? Topic: Cost of CapitalThe company has a P1,000 par value bond outstanding with 25 years to maturity. The bond carries an annual interest payment of P88 and is currently selling for P925. The company is in a 30% tax bracket. Compute for the approximate after tax-cost of debt.
- E Co. has incurred $10,000 in costs to issue bonds. The costs are fees paid to a transfer agent, commission on the sale of bonds, and other related fees and expenses. How should these costs be deducted for tax purposes? Question 10 options: Deduct $10,000 over a two-year period, claiming $5,000 per year. Deduct $10,000 over a five-year period, claiming $2,000 per year. Claim $10,000 once all the bonds are sold. Claim $10,000 as an expense once the bonds mature. B Co. plans to raise $200,000 for an expansion project through fixed dividend preferred shares at 9%. B's tax rate is 27%. How much corporate income will B require to service the cost of the expansion? Question 7 options: $0 $18,000 $24,658 $4,860MULTIPLE CHOICE Law Corporation has P5 million of 16 percent mortgage bonds outstanding. The indenture permits additional bonds to be issued as long as the following conditions are satisfied: (a) The before-tax times-interest-earned ratio is greater than 3. (b) Book value of the mortgaged assets are at least four times the amount of debt. (c) The debt/equity ratio is less than 0.8. The following additional data are given: Income before tax is P12 million, equity is P30 million, book value of mortgaged assets is P60 million, and 20 percent of the proceeds of a new issue would be added to the base of mortgaged assets. What amount of additional debt can be issued for each of the conditions (a), (b), and (c)? A. (a)P21,666,667.00, (b) P10,526,305.00, and (c) P19,000,000.00B. (a)P21,666,667.00, (b) P10,526,305.00, and (c) P18,000,000.00C. (a)P20,666,667.00, (b) P11,526,305.00, and (c) P19,000,000.00D. (a)P20,666,667.00, (b) P11,526,305.00, and (c) P20,000,000.00E. None of the aboveA company issues a P300,000, 10 percent, 20-year bond. The tax rate is 40 percent. What is the after-tax semiannual interest in peso amount?
- Martin Company has 500k in taxable income, 50k in interest income, 100k in dividend income. Using the corporate tax rate table, what is the company's tax liability for the year?The Dakota Corporation had a 2021 taxable income of $20,000,000 from operations after all operating costs but before (1) interest charges of $3,800,000, (2) dividends received of $320,000, (3) dividends paid of $2,200,000, and (4) income taxes (the firm’s tax rate is 21 percent).a. Calculate Dakota’s income tax liability. (Round your answer to the nearest dollar amount.)The Dakota Corporation had a 2021 taxable income of $31,500,000 from operations after all operating costs but before (1) interest charges of $8,400,000, (2) dividends received of $740,000, (3) dividends paid of $5,200,000, and (4) income taxes (the firm’s tax rate is 21 percent).a. Calculate Dakota’s income tax liability. (Round your answer to the nearest dollar amount.) Income tax liability b. What are Dakota’s average and marginal tax rates on taxable income? (Round your answers to 2 decimal places.) Average tax rate % Marginal tax rate %
