Chapter 3, Problem 14DQ

Goose Corporation, a C corporation, incurs a net capital loss of $23,900 for 2021. It also has ordinary income of $19,120 in 2021. Goose had net capital gains of $4,780 in 2017 and $9,560 in 2020. If an amount is zero, enter "0". a.  Determine the amount, if any, of the net capital loss of $23,900 that is deductible in 2021.$fill in the blank 1 _______ ? b.  Determine the amount, if any, of the net capital loss of $23,900 that is carried forward to 2022.$fill in the blank 1 ______?

Mira Company was authorized by their board of directors to issue their financial statements on April 1, 2021 which shows a profit before tax for the year ended December 31, 2020 at P 9,500,000. A fire occurred at one of their sites on February 15, 2021 with damages amounting to a total of 6,000,000. It was covered with an insurance but only at P 4,000,000. The said amount can only be collected on May 1, 2021 when repairs will be paid. What amount will be disclosed on the company's notes to financial statements?

ABC is a large company in Oman earned net profit of RO 360,000 in the tax year 2019. The company incurred a heavy loss of (OMR 240,000) in the year 2011. These losses were not carried forward and set-off from the succeeding years income and the company does not have any other adjustments during the year 2019. The taxable income of the company for the year 2019 will be: a. RO 120,000 b. RO 360,000 c. (RO 120,000) d. RO 240,000

Gray, Inc., a C corporation, has taxable income from operations of $1,452,000 for 2022. It also has a net long-term capital loss of $355,000 from the sale of a subsidiary's stock. The year 2022 is the first year in the last 10 years that Gray has not had at least $500,000 per year of net long-term capital gains. What is Gray's 2022 taxable income? What, if anything, can it do with any unused capital losses? If an amount is zero, enter "0". Because Gray may deduct $fill in the blank 1 of the capital losses this year, its taxable income is $fill in the blank 2. Any unused loss may be carried back for choose answer: (three - five -seven) years, then carried forward for choose answer: (five- three -seven) years as a choose answer: (short-term capital loss- long-term capital loss) against Gray's capital gainsordinary taxable income .

The following selected circumstances relate to pending lawsuits for Erismus, Incorporated Erismus’s fiscal year ends on December 31. Financial statements are issued in March 2025. Erismus prepares its financial statements according to U.S. GAAP. Required: Indicate the amount Erismus would record as an asset, a liability or if no accrual would be necessary in the following circumstances. Erismus is defending against a lawsuit. Erismus's management believes the company has a slightly worse than 50/50 chance of eventually prevailing in court, and that if it loses, the judgment will be $1,430,000. Erismus is defending against a lawsuit. Erismus's management believes it is probable that the company will lose in court. If it loses, management believes that damages could fall anywhere in the range of $2,830,000 to $5,660,000, with any damage in that range equally likely. Erismus is defending against a lawsuit. Erismus's management believes it is probable that the company will lose in court.…

On January 1, 2022, Labo Mo Company, met the criteria for discontinuance of a business segment. For the period January 1 through October 15, 2022, the segment had revenues of P1,000,000 and expenses of P1,600,000. The assets of the segment were sold on October 15, 2022 at a loss for which no tax benefit is available. In the statement of comprehensive income for the year ended December 31, 2022, How should Labo Mo report the segment’s operations from January 1, 2022 to October 15, 2022? a. P1,000,000 and P1,6000 should be included with revenues and expenses, respectively, as part of the continuing operations. b. P600,000 should be reported as part of the loss on operations and disposal of a segment. c. P600,000 should be reported as an extraordinary loss. d. P1,000,000 should be reported as revenues from operations of discontinued segment.

On January 30, 2016, a suit was filed against Frazier Corporationunder the Environmental Protection Act. OnAugust 6, 2017, Frazier Corporation agreed to settle theaction and pay $920,000 in damages to certain currentand former employees. How should this settlement bereported in the 2017 financial statements? Discuss.

Ambee Ltd. commenced operations in 2019, and has two separate lines of business. They are a mail order operation selling organic food products, and an operation that provides accounting services to small business.  The income (loss) of the two operations for the years 2019 and 2020 are as follows:                                                            Mail Order        Accounting Year                                                  Operation           Operation 2019                                                   ($146,000)             $ 43,000 2020                                                         56,000                85,000 The Company has no deductions from Net Income For Tax Purposes other than possible loss carry forwards from 2019.   Required:  Determine the minimum Taxable Income for 2019 and 2020, and any loss carry forward available at the end of each year assuming that there was an acquisition of control on January 1, 2020.

Since its incorporation in 2010, Park Inc. has qualifed as a CCPC. During the period since incor-poration until December 31, 2021, the company has had the following transactions that might involve the capital dividend account: 1. In 2012, the company sold depreciable property with an ACB of $225,000. It was the last property in its class and the balance in the class at the time of the sale was $129,600. The proceeds from the sale were $275,000. No additional property was purchased in 2012. 2. In 2014, the company received a capital dividend of $46,000. 3. In 2015, the company received life insurance proceeds, net of the adjusted cost basis of the policy, in the amount of $27,500. 4. In 2016, the company paid a capital dividend of $38,000 and eligible dividends of $19,000. The required election and designation was made. 5. In 2016, the company sold a parcel of land for $100,000. The ACB of this land was $145,000. 6. In January 2021, Park acquired all of the shares of a small…