V5 Based on the above scenario, what amount of the tax benefit related to the uncertain tax position from the reseCorporation recognize in calculating its income tax provision in the current year?OI. $300,000O II.$420,000O III. $0O IV. $150,000OV.$180,000 Question 341) Regal Corporation assessed that 0 of its research tax credit on its current year tax return was uncertain, but that it was morelikely than not to be sustained on audit. Management at Regal determined the following assessment of the company's potential tax benefit fromthe credit and its probability of occurring.Potential Estimated Benefit$420,000300,000180,000150,000his0Individual Probability ofOccurring (%)19%15232815Cumulative Probability ofOccurring (%)19%345785100Based on the above scenario, what amount of the tax benefit related to the uncertain tax position from the research tax credit can RegalCorporation recognize in calculating its income tax provision in the current year?

Uncertain tax : It is a tax treatment for which there is confusion or uncertainty that the tax…

Answered: Based Corporation recognize in…

Business

Accounting

Based Corporation recognize in calculating its income tax provision in the OI. $300,000 11. $420.000

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter14: Taxes On The Financial Statements

Section: Chapter Questions

Problem 53P

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Deferred Tax Assets. Components of the deferred tax asset of Biosante Pharmaceuticals, Inc., are shown in Exhibit 2.14. The company had no deferred tax liabilities. REQUIRED a. At the end of 2008, the largest deferred tax asset is for net operating loss carryforwards. (Net operating loss carryforwards [also referred to as tax loss carryforwards] are amounts reported as taxable losses on tax filings. Because the tax authorities generally do not pay corporations for incurring losses, companies are allowed to carry forward taxable losses to future years to offset taxable income. These future tax benefits give rise to deferred tax assets.) As of the end of 2008, what is the dollar amount of the companys net operating loss carryforwards? What is the dollar amount of the deferred tax asset for the net operating loss carryforwards? Describe how these two amounts are related. b. Biosante has gross deferred tax assets of 28,946,363. However, the net deferred tax assets balance is zero. Explain. c. The valuation allowance for the deferred tax asset increased from 21,818,084 to 28,946,363 between 2007 and 2008. How did this change affect the company's net income?
LO.3, 4, 5 Contrast the income taxation of individuals and C corporations as to: a. Alternative minimum tax. b. Dividend income. c. Qualified business income deduction of 20 percent. d. Use of the cash method of accounting. e. Accounting period used for tax purposes. f. Applicable tax rates. g. Due date of the tax return.
Cadillac Square Corporation determined that $1,123,800 of its research and development tax credit on its current-year tax return was uncertain, but that it was more likely than not to be sustained on audit. Management made the following assessment of the company’s potential tax benefit from the deduction and its probability of occurring. Potential Estimated Benefit (000s) Individual Probability of Occurring (%) Cumulative Probability of Occurring (%) $ 1,123,800 44 44 917,050 24 68 243,550 20 88 0 12 100 What amount of the tax benefit related to the uncertain tax position from the research and development tax credit can Cadillac Square Corporation recognize in calculating its income tax provision in the current year?
Resource Company is evaluating a tax position resulting in a deduction taken for $400,000. Resource Company's tax rate is 21%. When assessing the uncertain tax position using the recognition criteria, Resource Company has determined that it is more-likely-than-not that this position will be sustained on examination by the tax authority. In performing the measurement step, Resource Company determined that $250,000 is the largest tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the taxing authority. What journal entry should Resource Company record related to the tax-effected liability for unrecognized tax benefit? A. Dr: Liability for unrecognized tax benefit $31,500 Cr: Income tax expense $31,500 B. Dr: Income tax expense $31,500 Cr: Liability for unrecognized tax benefit $31,500 C. Dr: Income tax expense $52,500 Cr: Liability for unrecognized tax benefit $52,500 D. Dr: Liability for unrecognized tax benefit $52,500 Cr: Income tax expense…
An entity computed its pre-tax income in its GAAP compliant books atP2,450,000 while its income per income tax return properly computed atP2,850,000. There has been a temporary difference causing thediscrepancy between the two amounts. The tax rate is 30%. How much isthe Deferred Tax Liability of the company to be presented in its statementof financial position? A. P120,000B. P855,000C. P735,000D. P0
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1) The estimate of current tax made by Boo Ltd for the year ended 31 December2019 was £15,000 different from the actual tax liability. This resulted in a debitbalance in the trial balance at 31 December 2020.The current tax liability for the year to 31 December 2020 is estimated to be£275,000.What is the current tax expense in the statement of profit or loss for the yearended 31 December 2020?a) £15,000b) £290,000c) £275,000d) £260,000 2) A company’s trade payables days and trade receivables days are 60 daysand 30 days, respectively.The sales and purchase information for the year was as follows:Sales Purchases£m £mCash 27 10Credit 35 18Total 62 28What was the trade receivables and trade payables balances at the year end?a) £5.10m and £4.60mb) £2.21m and £1.64mc) £5.75m and £1.48md) £2.88m and £2.96m Please solve question 1 and 2
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Assume that The Bell Company operates in an industry for which NOL carryback is allowed. The Bell Company had the following operating results: Year Income (loss) Tax rate Income tax 2018 40,000 25 % 10,000 2019 40,000 25 % 10,000 2020 50,000 30 % 15,000 2021 (130,000 ) 30 % 0 What is the income tax refund receivable? A) $27,000. B) $24,000. C) $25,000 D) $21,000.