ADVANCED ACCOUNTING-LL
13th Edition
ISBN: 9781260232486
Author: Hoyle
Publisher: MCGRAW-HILL CUSTOM PUBLISHING
expand_more
expand_more
format_list_bulleted
Question
Chapter 8, Problem 28P
To determine
Identify the amount of net income that company R should report for the quarter ended September 30.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Rouge Company’s $250,000 net income for the quarter ended September 30 included the following after-tax items:• A $20,000 cumulative effect loss resulting from a change in inventory valuation method made on September 1.• $0 of the $60,000 annual property taxes paid on February 1.For the quarter ended September 30, the amount of net income that Rouge should report isa. $235,000b. $250,000c. $255,000d. $270,000
Occidental Company's P10,000,000 net income for the quarter ended September 30, included the following after-tax items
AP1,200,000 gain realized on April 30 was allocated equally to the second, third and fourth quarters of the year.
A P3,000,000 cumulative loss resulting from a change in inventory valuation method was recognized on August 2.
In addition, Occidental paid P600,000 on February 1 for the calendar-year property tax. Of this amount, P150,000 was allocated to the third
quarter. For the quarter ended September 30, Occidental should report net income of
1. QUIRK ACCIDENT Co. reports profit before tax of
P200,000 in its 2nd quarter interim financial statements
before consideration for the following:
a. Inventory with a carrying amount P10,000 has a net
realizable value of P12,000. It is expected that the change
in value will reverse in the 3rd quarter. There have been no
write-downs of inventory recognized in previous periods.
b. An investment property measured under the cost model
has a carrying amount of P150,000 but its recoverable
amount is P140,000.
c. An investment in FVPL measured at acquisition cost of
P20,000 has a fair value of P38,000 as at the end of 2nd the
quarter. However, the increase in fair value is expected to
be only temporary.
d. No depreciation is recognized during the 2nd quarter. The
annual straight-line depreciation of items of PPE is
P60,000.
e. ABC Co. has a policy of providing 12 days paid vacation
leaves for its employees. The vacation leaves are vesting
and accumulating. Total paid vacation leaves…
Chapter 8 Solutions
ADVANCED ACCOUNTING-LL
Ch. 8 - Prob. 1QCh. 8 - Prob. 2QCh. 8 - Prob. 3QCh. 8 - The management approach requires a firm to define...Ch. 8 - What is an operating segment?Ch. 8 - Prob. 6QCh. 8 - Prob. 7QCh. 8 - Prob. 8QCh. 8 - Prob. 9QCh. 8 - Prob. 10Q
Ch. 8 - Prob. 11QCh. 8 - To satisfy geographic area disclosure...Ch. 8 - Prob. 13QCh. 8 - Prob. 14QCh. 8 - Prob. 15QCh. 8 - Prob. 16QCh. 8 - Prob. 17QCh. 8 - How does a company determine the amount of income...Ch. 8 - Prob. 19QCh. 8 - Prob. 20QCh. 8 - What type of segment information must companies...Ch. 8 - How would an annual bonus paid at year-end be...Ch. 8 - Which of the following does U.S. GAAP not consider...Ch. 8 - Prob. 2PCh. 8 - Prob. 3PCh. 8 - Prob. 4PCh. 8 - Prob. 5PCh. 8 - Which of the following is not necessarily true for...Ch. 8 - Prob. 7PCh. 8 - Prob. 8PCh. 8 - Prob. 9PCh. 8 - Which of the following items is required to be...Ch. 8 - Prob. 11PCh. 8 - Prob. 12PCh. 8 - Which of the following information items with...Ch. 8 - Prob. 14PCh. 8 - In considering interim financial reporting, how...Ch. 8 - How should material seasonal variations in revenue...Ch. 8 - Prob. 17PCh. 8 - Prob. 18PCh. 8 - Prob. 19PCh. 8 - Niceville Company pays property taxes of 100,000...Ch. 8 - Prob. 21PCh. 8 - Prob. 22PCh. 8 - Prob. 23PCh. 8 - Prob. 24PCh. 8 - Prob. 25PCh. 8 - Prob. 26PCh. 8 - Prob. 27PCh. 8 - Prob. 28PCh. 8 - Prob. 29PCh. 8 - Prob. 30PCh. 8 - Prob. 31PCh. 8 - Prob. 32PCh. 8 - Prob. 33PCh. 8 - Prob. 34PCh. 8 - Prob. 35PCh. 8 - Prob. 36PCh. 8 - Prob. 37PCh. 8 - Prob. 38PCh. 8 - Noventis Corporation prepared the following...Ch. 8 - Prob. 40PCh. 8 - Prob. 41PCh. 8 - Prob. 5DYSCh. 8 - ACCOUNTING STANDARDS CASE 1SEGMENT REPORTING...Ch. 8 - ACCOUNTING STANDARDS CASE 2INTERIM REPORTING...Ch. 8 - Prob. 8DYSCh. 8 - Prob. 9DYS
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- 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)arrow_forwardIn the quarter ended 31 March 20X2, C had sales taxable outputs, net of sales tax, of $90,000 and taxable inputs, net of sales tax, of $72,000. If the rate of sales tax is 10%, how much sales tax is due? A $1,800 receivable B $2,000 receivable C $1,800 payable D $2,000 payablearrow_forwardCrown Inc. reported P1,900,000 net income for the quarter ended September 30, 2021 which included the following after tax items: A P1,200,000 expropriation gain, realized on April 30, 2021, was allocated equally to the 2nd, 3rd and 4th quarters of 2021. A P300,000 cumulative-effect loss resulting from a change in inventory valuation method was recognized on August 1, 2021. On February 1, 2021, Peras Inc. paid P960,000 for 2021 calendar-year property taxes. One-fourth of the property taxes paid was allocated to the 3rd quarter of 2021. What amount should be reported as net income for the quarter ended September 30, 2021? A. 900,000B. 1,250,000C. 1,800,000D. 1,600,000arrow_forward
- Atis Inc. reported P 3,800,000 net income for the quarter ended September 30, 2021 which included the following after tax items: A P 2,400,000 expropriation gain, realized on April 30, 2021, was allocated equally to the 2nd, 3rd and 4th quarters of 2021. A P 600,000 cumulative-effect loss resulting from a change in inventory valuation method was recognized on August 1, 2021. On February 1, 2021, Atis Inc. paid P1,920,000 for 2021 calendar-year property taxes. One-fourth of the property taxes paid was allocated to the 3rd quarter of 2021. What amount should be reported as net income for the quarter ended September 30, 2021?A. 900,000B. 1,600,000C. 3,600,000D. 1,800,000arrow_forwardA company reported in the income statement for the current year P900,000 income before provision for income tax. Please consider the following information: Rent income received in advance P150,000Interest income on time deposit 200,000Depreciation deducted for income tax purposes in excess of financial depreciation P100,000Income tax rate 30% How much is the accounting income subject to tax?A. 900,000B. 750,000C. 700,000D. 225,000arrow_forwardLV Inc. reported a net operating loss carry-forward of P 20,000 in its most recent annual financial statements. During the year, LV Inc. earned P 10,000 in each of the first two quarters and P 15,000 in each of the last two quarters. Excluding the carry- forward, the estimated average annual income tax rate is 25%. REQUIRED: Compute for the income tax expense recognized in the quarterly interim financial statements.arrow_forward
- WB Inc. reported profits of P 100,000 in its March 31, 2022 interim financial statements. Additional information is shown below (amounts are net of tax): • AP 10,000 cumulative-effect gain resulting from a change in inventory cost flow formula was recognized in profit or loss during the 1 quarter. • In March 2022, a component of an entity was classified as held for sale. Of the total loss on discontinued operations of P 12,000, only P 3,000 has been recognized in the 1" quarter. WB Inc. intends to allocate the remaining P 9,000 loss to the other quarters in 2022. REQUIRED: Compute for the restated profit after tax for the 1" quarter of 2022.arrow_forwardChandler Corporation reported pre-tax book income of $1,900,000. Tax depreciation exceeded book depreciation by $600,000. During the year the Company capitalized $250,000 into ending inventory under §263A. Capitalized inventory costs of $150,000 in beginning inventory were deducted as part of cost of goods sold on the tax return. Assuming a tax rate of 21%, compute the company’s taxes payable or refundable.arrow_forwardMisty Company reported the following before-tax items during the current year: Sales revenue $950 Selling and administrative expenses Restructuring charges Loss on discontinued operations 470 20 40 Misty's effective tax rate is 25%. What is Misty's net income for the current year? Multiple Choice $385. Nextarrow_forward
- The accounting profit before tax for the year ended December 31, 2021, for JENDEUKIE Co. amounted to P175,900 and included: Interest income 11,000 Long-service leave expense Doubt ful debts expense 7,000 4,200 Depreciation - plant (15% p.a) Rent expense 33,000 22,800 Entertainment expense (non-deductible) 3,900 The draft statement of financial position at December 31, 2021 contained the following assets and liabilities: 2020 7,500 76,800 2021 Cash 9,000 Accounts receivable 83,000 (5,000) 67,100 Allowance for doubtful debts (3,200) Inventory 58,300 Interest receivable Prepaid rent 1,000 2,800 2,400 Plant 220,000 220,000 Accumulated depreciation - plant (99,000) (66,000) Deferred tax asset ? 30,360 2021 2020 73,600 61,000 Accounts payable 71,200 Provision for long-service leave 64,000 Deferred tax liability 720 Additional information: The tax depreciation rate for plant is 10% p.a., straight line. The tax rate is 30% The company has P15,000 in tax losses carried forward from previous…arrow_forwardA company reported in the income statement for the current year 900,000 income before provision for income tax. Please consider the following information: Rent income received in advance 150,000Interest income on time deposit 200,000Depreciation deducted for income tax purposes in excess of financial depreciation 100,000Income tax rate 30% What amount should be reported as current provision for income tax or current tax expense for the current year?A. 225,000B. 270,000C. 230,000D. 220,000arrow_forwardAzure Company reported in the income statement for the current year P900,000 income before provision for income tax. Please consider the following information: Rent income received in advance P150,000 Interest income on time deposit 200,000 Depreciation deducted for income tax purposes in excess of financial depreciation P100,000 Income tax rate 30% How much is the permanent difference?A. 200,000B. 100,000C. 150,000D.350,000arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
IAS 29 Financial Reporting in Hyperinflationary Economies: Summary 2021; Author: Silvia of CPDbox;https://www.youtube.com/watch?v=55luVuTYLY8;License: Standard Youtube License