Answer (1)
Taxable Income | $ 85.00 | $ 85.00 | $ 85.00 | $ 85.00 | $ 85.00 | (A) |
Tax @ 40% | $ 34.00 | $ 34.00 | $ 34.00 | $ 34.00 | $ 34.00 | (B)=(A*40%) |
Less : Tax Benefit (Note-1) | $ (1.00) | $ (1.60) | $ (1.50) | $ (0.80) | $ (0.50) | (C) |
Tax Payable | $ 33.00 | $ 32.40 | $ 32.50 | $ 33.20 | $ 33.50 | (D)=(B-C) |
Hence, It will be tax benefit at $8.00 that management expects
Note -1 | |||||
Amount of the tax benefit that management expects to receive | $ 10.00 | $ 8.00 | $ 6.00 | $ 4.00 | $ 2.00 |
Percentage likelihood that the tax benefit will be sustained at this level | 10% | 20% | 25% | 20% | 25% |
Percentage likelihood that the tax benefit will be sustained at this level | $ 1.00 | $ 1.60 | $ 1.50 | $ 0.80 | $ 0.50 |
Answer (2)
For making provision | |||
Profit & Loss A/c | Debit | $ 32.40 | |
Income Tax Payable A/c | Credit | $ 32.40 |
E 16-29 Tax credit; uncertainty regarding sustainability LO16-9 L Delta Catfish Company has taken a position...
Exercise 16-29 Tax credit; uncertainty regarding sustainability (LO16-9) Delta Catfish Company has taken a position in its tax return to claim a tax credit of $28 million (direct reduction in taxes payable) and has determined that its sustainability is more likely than not," based on its technical merits. Delta has developed the probability table shown below of all possible material outcomes. Probability Table ($ in millions) Amount of the tax benefit that management expects to receive Percentage likelihood that the...
Delta Catfish Company has taken a position in its tax return to claim a tax credit of $10 million (direct reduction in taxes payable) and has determined that its sustainability is “more likely than not,” based on its technical merits. Delta has developed the probability table shown below of all possible material outcomes: Probability Table ($ in millions) Amount of the tax benefit that management expects to receive $ 10 $ 8 $ 6 $ 4 $ 2 Percentage likelihood...
Delta Catfish Company has taken a position in its tax return to claim a tax credit of $26 million (direct reduction in taxes payable) and has determined that its sustainability is “more likely than not,” based on its technical merits. Delta has developed the probability table shown below of all possible material outcomes: Probability Table ($ in millions) Amount of the tax benefit that management expects to receive $ 26 $ 20.8 $ 15.6 $ 10.4 $ 5.2 Percentage likelihood...
Check my work Delta Catfish Company has taken a position in its tax return to claim a tax credit of $30 million (direct reduction in taxes payable) and has determined that its sustainability is "more likely than not," based on its technical merits. Delta has developed the probability table shown below of all possible material outcomes: $30 $24.0 $18.0 $12.0 10& 20& 25% 208 Delta's taxable income is $105 million for the year. Its effective tax rate is 40%. The...
P 16-13 Multiple differences; uncertain tax position CL016–2, 2016–5, Q.1016–9 * Tru Developers, Inc., sells plots of land for industrial development. Tru recognizes income for financial reporting purposes in the year it sells the plots. For some of the plots sold this year, Tru took the position that it could recognize the income for tax purposes when the installments are collected. Income that Tru recognized for financial reporting purposes in 2021 for plots in this category was $60 million. The...
Chapter 16-Problem 10 Tru Developers, Inc. sells plots of land for industrial development. Tru recognizes income for financial reporting purposes in the year it sells the plots. For some of the plots sold this year, Tru took the position that it could recognize the income for tax purposes when the installments are collected. Income that Tru recognized for financial reporting purposes in 2018 for plots in this category was $60 million. The company expected to collect 60% of each sale...
Tru Developers, Inc., sells plots of land for industrial development. Tru recognizes income for financial reporting purposes in the year it sells the plots. For some of the plots sold this year, Tru took the position that it could recognize the income for tax purposes when the installments are collected. Income that Tru recognized for financial reporting purposes in 2021 for plots in this category was $60 million. The company expected to collect 60% of each sale in 2022 and...
14 Tru Developers, Inc., sells plots of land for industrial development. Tru recognizes income for financial reporting purposes in the year it sells the plots. For some of the plots sold this year, Tru took the position that it could recognize the income for tax purposes when the installments are collected. Income that Tru recognized for financial reporting purposes in 2021 for plots in this category was $70 million. The company expected to collect 60% of each sale in 2022...
Tru Developers, Inc., sells plots of land for industrial
development. Tru recognizes income for financial reporting purposes
in the year it sells the plots. For some of the plots sold this
year, Tru took the position that it could recognize the income for
tax purposes when the installments are collected. Income that Tru
recognized for financial reporting purposes in 2021 for plots in
this category was $70 million. The company expected to collect 60%
of each sale in 2022 and...
To complete the assignment, you will be using financial
statement excerpts from the 2018 10Ks of Delta, Honeywell, and Ford
Motor Company. I have extracted the portions of the 10K you will
require for the assignment and posted the information
6. What is the funded status of all of Honeywell’s pension
benefit plans in 2018 (US and Non US)? What amount of asset or
liability should Honeywell report on its 2018 balance sheet?
Excerpt from Ford Motor Company 2018 10K...