Homework Answers
1. Calculation of dividends received deduction & taxable income thereof-
For 2019 & 2021, claiming full DRD results in loss. See note below.
2. Calculation of NOL:
Notes:
* Exception to general rule to calculation of states that in case where claiming full DRD i.e. 65% * dividend received results in Net operating loss, full DRD shall be claimed. This exception rule applies to year 2019 & 2021.
Add Answer to:
the questions are highlighted in yellow
loss co had the following items of income and deductions...
2.During 20X5, X co. had the following income and expenses: Gross income from operations$3,000,000 Business expenses<1,400,000>...
2.During 20X5, X co. had the following income and expenses: Gross income from operations$3,000,000 Business expenses<1,400,000> Dividends received from Y co. (32% owned by X co.)400,000 Capital gains 150,000 Capital loss carry forward<183,000> Net operating loss carry forward <25,000> a.Determine X co.’s dividends received deduction in 20X5? b.Determine X co.’s dividends received deduction in 20X5 assuming that there was no NOL carry forward and X co.’s business expenses were: (i) $3,050,000 or (ii) $3,200,000.
Comprehensive Problem 5-56 (LO 5-1, LO 5-2, LO 5-3) Compute HC Inc.'s current-year taxable income given...
Comprehensive Problem 5-56 (LO 5-1, LO 5-2, LO 5-3) Compute HC Inc.'s current-year taxable income given the following information relating to its 2019 activities. Also, compute HC's Schedule M-1 assuming that HC's federal income tax expense for book purposes is $30,000. Use Exhibit 16-6. • Gross profit from inventory sales of $310,000 (no book-tax differences). • Dividends HC received from 28 percent-owned corporation of $120,000 (this is also HC's pro rata share of the corporation's earnings). • Expenses other than...
WCC Corp. has a $185,000 net operating loss carryover into 2020. Assume that it reported $92,000...
WCC Corp. has a $185,000 net operating loss carryover into 2020. Assume that it reported $92,000 of taxable income in 2020 (before the net operating loss deduction) and $115,000 of taxable income in 2021 (before the net operating loss deduction). a. What is WCC’s taxable income in 2020 and 2021 (after the net operating loss deduction), assuming the $185,000 NOL carryover originated in 2016? b. What is WCC’s taxable income in 2020 and 2021 (after the net operating loss deduction),...
Compute MV Corp. 2019 taxable income given the following info relating to its year 1 activities....
Compute MV Corp. 2019 taxable income given the following info
relating to its year 1 activities. Also, compute MV’s Schedule M-1
assuming that MV’s federal income tax expense for book purposes is
$100,000.
Gross profit from inventory sales of $500,000 (no book–tax
differences)
Dividends MV received from 25 percent-owned corporation of
$100,000 (assume this is also MV’s pro rata share of the
distributing corporation’s earnings).
Expenses other than DRD, charitable contribution, and
net operating loss (NOL), are $350,000 (no book–tax...
Pls help with the numbers in red. Also, provide an explanation of your results! Thank you!...
Pls help with the numbers in red.
Also, provide an explanation of your results! Thank you!
Compute HC Inc.'s current-year taxable income given the following information relating to its 2020 activities. Also, compute HC's Schedule M-1 assuming that HC's federal income tax expense for book purposes is $30,000. Use Exhibit 16-6. • Gross profit from inventory sales of $310,000 (no book-tax differences) Dividends HC received from 28 percent-owned corporation of $120,000 (this is also HC's pro rata share of the...
Suppose A company had the following taxable income and tax rates: 2015 20162017 2018 Taxable income...
Suppose A company had the following taxable income and tax rates: 2015 20162017 2018 Taxable income S50,000 S100,000 $200,000 ($210,000) Income tax rate 35% company chooses NOL carryback, it will receive a tax refund of $74,000 Recall that the from the earlier year company SHOULD start offsetting the NOL with income starting Example 1a Collin Corp. had the following tax information. Year Taxable Tax rate Tax paid 2016 2017 2018 income S300,000 325,000 400,000 35% 30% 30% S 105,000 97...
Capital Gains and Losses (LO. 5) Jennifer is single and has the following income and expenses:...
Capital Gains and Losses (LO. 5) Jennifer is single and has the following income and expenses: Salary Interest income $75,900 5,200 8,700 Dividend income Long-term capital gain 10,500 Short-term capital loss 14,900 3,300 Deductions for AGI Deductions from AGI 14,800 The standard deduction is $12,000 for single taxpayers. Dividends and net long-term capital gains are taxed at a rate of 15%. Refer to the Tax schedules table to answer the following question. Round intermediate calculations and final answers to the...
fore farms reported a pretax operating loss of $137 million for financial reporting purposes in 2021....
fore farms reported a pretax operating loss of $137 million for
financial reporting purposes in 2021. Contributing to the loss were
a penalty of $5 million assessed by the environmental protection
agency for violation of a federal law and paid in 2021, and b.) an
estimated loss of $12 million from accruing a loss contingency. The
loss will be tax deductible when paid in 2022. The enacted tax rate
is 25%. There were no temporary differences at the beginning of...
E19.25 (LO 3) (NOL Carryforward, Valuation Account Needed) Meyer reported the following pretax financial income (loss)...
E19.25 (LO 3) (NOL Carryforward, Valuation Account Needed) Meyer reported the following pretax financial income (loss) for the years 2020-2022. 2020 $120,000 2021 (150,000) 2022 180,000 Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 20% for 2020-2022. Instructions a. Prepare the journal entries for the years 2020-2022 to record income tax expense, income taxes payable, and the tax effects of the loss carryforward, assuming that based on the...
Packard Corporation reported taxable income of $1,000,000 in 20X3 and paid federal income taxes of $340,000....
Packard Corporation reported taxable income of $1,000,000 in 20X3 and paid federal income taxes of $340,000. Included in the taxable income computation was a dividends received deduction of $5,000, a net capital loss carryover from 20x2 of $10,000 utilized in 20X3, and gain of $50,000 recognized on the collection of cash from an installment sale that took place in 20X1. The corporation's current E&P for 20X3 would be: Multiple Choice Ο $1,015,000. Ο $965,000. Ο $675,000. Ο $625,000.
Comprehensive Problem 5-56 (LO 5-1, LO 5-2, LO 5-3) Compute HC Inc.'s current-year taxable income given the following information relating to its 2019 activities. Also, compute HC's Schedule M-1 assuming that HC's federal income tax expense for book purposes is $30,000. Use Exhibit 16-6. • Gross profit from inventory sales of $310,000 (no book-tax differences). • Dividends HC received from 28 percent-owned corporation of $120,000 (this is also HC's pro rata share of the corporation's earnings). • Expenses other than...
Compute MV Corp. 2019 taxable income given the following info
relating to its year 1 activities. Also, compute MV’s Schedule M-1
assuming that MV’s federal income tax expense for book purposes is
$100,000.
Gross profit from inventory sales of $500,000 (no book–tax
differences)
Dividends MV received from 25 percent-owned corporation of
$100,000 (assume this is also MV’s pro rata share of the
distributing corporation’s earnings).
Expenses other than DRD, charitable contribution, and
net operating loss (NOL), are $350,000 (no book–tax...
Pls help with the numbers in red.
Also, provide an explanation of your results! Thank you!
Compute HC Inc.'s current-year taxable income given the following information relating to its 2020 activities. Also, compute HC's Schedule M-1 assuming that HC's federal income tax expense for book purposes is $30,000. Use Exhibit 16-6. • Gross profit from inventory sales of $310,000 (no book-tax differences) Dividends HC received from 28 percent-owned corporation of $120,000 (this is also HC's pro rata share of the...
Suppose A company had the following taxable income and tax rates: 2015 20162017 2018 Taxable income S50,000 S100,000 $200,000 ($210,000) Income tax rate 35% company chooses NOL carryback, it will receive a tax refund of $74,000 Recall that the from the earlier year company SHOULD start offsetting the NOL with income starting Example 1a Collin Corp. had the following tax information. Year Taxable Tax rate Tax paid 2016 2017 2018 income S300,000 325,000 400,000 35% 30% 30% S 105,000 97...
Capital Gains and Losses (LO. 5) Jennifer is single and has the following income and expenses: Salary Interest income $75,900 5,200 8,700 Dividend income Long-term capital gain 10,500 Short-term capital loss 14,900 3,300 Deductions for AGI Deductions from AGI 14,800 The standard deduction is $12,000 for single taxpayers. Dividends and net long-term capital gains are taxed at a rate of 15%. Refer to the Tax schedules table to answer the following question. Round intermediate calculations and final answers to the...
fore farms reported a pretax operating loss of $137 million for
financial reporting purposes in 2021. Contributing to the loss were
a penalty of $5 million assessed by the environmental protection
agency for violation of a federal law and paid in 2021, and b.) an
estimated loss of $12 million from accruing a loss contingency. The
loss will be tax deductible when paid in 2022. The enacted tax rate
is 25%. There were no temporary differences at the beginning of...
E19.25 (LO 3) (NOL Carryforward, Valuation Account Needed) Meyer reported the following pretax financial income (loss) for the years 2020-2022. 2020 $120,000 2021 (150,000) 2022 180,000 Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 20% for 2020-2022. Instructions a. Prepare the journal entries for the years 2020-2022 to record income tax expense, income taxes payable, and the tax effects of the loss carryforward, assuming that based on the...
Packard Corporation reported taxable income of $1,000,000 in 20X3 and paid federal income taxes of $340,000. Included in the taxable income computation was a dividends received deduction of $5,000, a net capital loss carryover from 20x2 of $10,000 utilized in 20X3, and gain of $50,000 recognized on the collection of cash from an installment sale that took place in 20X1. The corporation's current E&P for 20X3 would be: Multiple Choice Ο $1,015,000. Ο $965,000. Ο $675,000. Ο $625,000.
Most questions answered within 3 hours.
-
Suppose there is a duopoly of two identical firms, A and B,
facing a market inverse...
asked 4 minutes ago -
A camera with a lens diameter D = 3 mm and a focal length of f...
asked 13 minutes ago -
8. A drug company has a monopoly on a new class of
corticosteroid. The market demand...
asked 30 minutes ago -
Is dividing a government a good or bad thing? How can this
problem be fixed? What...
asked 23 minutes ago -
You need to implement a queue based on the doubly linked list.
(In C++) **PLEASE follow...
asked 25 minutes ago -
The pulse rates of
176176
randomly selected adult males vary from a low of
4242
bpm...
asked 38 minutes ago -
Projecting the financial performance and requirements for the
venture is related to the major milestones. It...
asked 40 minutes ago -
Can you all give me an example of a good organizational
alliance. Please explain why you...
asked 42 minutes ago -
A mother nags her son daily to do his household chores. One day
he decides to...
asked 56 minutes ago -
A pore of a K+ channel has the diameter of about 5.5
angstroms, and this channel is...
asked 1 hour ago -
Let's say that the median income for someone with an associate’s
degree is about $10,800 higher...
asked 1 hour ago -
I need to rewrite this lambda function into a def function using
python.
mp is an...
asked 1 hour ago