Homework Answers
Solution:
Taxable Income = Sales - Expenses - Tax Depreciation for 20X1 = 638000 - 510000 - 100000 = $28000
Tax payable as of Dec 31, 20X1 = $28000* 21% = $5,880
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3 Same fact pattern as Question 1. Problem 1, Question 2. Company A started business on...
3 Same fact pattern as Questions 1 and 2. Problem 1, Question 3. Company A started...
3 Same fact pattern as Questions 1 and 2. Problem 1, Question 3. Company A started business on January 1, 20X1, and bought the following piece of equipment. Cost of asset $150,000 Salvage 30,000 Useful life Tax rate 21% 20X1 estimated tax payment 1,800 Depreciation for book and tax purposes is as follows: Book Tax 20x1 40,000 100,000 20X2 40,000 20,000 40,000 0 20X1 income statement information: Sales 638,000 Expenses (does not include depreciation expense and tax expense) 510,000 20X3...
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Company D started business on January 1, 20X1, and bought the following piece of equipment. Cost...
Company D started business on January 1, 20X1, and bought the following piece of equipment. Cost of asset $300,000 Salvage 30,000 Useful life 5 Tax rate 21% 20X1 estimated tax payment 6,000 Depreciation for book and tax purposes is as follows: Book Tax 20X1 54,000 120,000 20X2 54,000 72,000 20X3 54,000 43,200 20X4 54,000 25,920 20X5 54,000 8,880 What is the ending balance of deferred taxes payable-depreciation on the December 31, 20X3 balance sheet? (You do not need income statement...
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Questions 4 and 5 use the below fact pattern. Problem 2, Question 5. Company B acquired the following piece of equipment. Your staff accountant computed the book and tax depreciation. It is up to you to determine the deferred tax amounts. Equipment cost $50,000 Salvage 5,000 Useful life Tax rate 21% Depreciation for book and tax purposes is as follows: Book 20X1 9 ,000 20,000 20x2 9,000 12,000 20X3 9,000 7,200 20X4 9,000 4,320 20X5 9,000 1,480 Tax 5) What...
Questions 4 and 5 use the below fact pattern. Problem 2, Question 4. Company B acquired...
Questions 4 and 5 use the below fact pattern. Problem 2, Question 4. Company B acquired the following piece of equipment. Your staff accountant computed the book and tax depreciation. It is up to you to determine the deferred tax amounts. Equipment cost $50,000 Salvage 5,000 Useful life Tax rate 21% Depreciation for book and tax purposes is as follows: Book Tax 20X19 ,000 20,000 20x2 9 ,000 12,000 20X3 9,000 7,200 20X4 9,000 4,320 20X5 9,000 1,480 4) What...
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Problem 3. Questions 6 through 10 use the below fact pattern. Problem 3, Question 6. Company...
Problem 3. Questions 6 through 10 use the below fact pattern. Problem 3, Question 6. Company C had the following investment. Help them determine the financial statement implications of the investment. Tax rate 21% Estimated tax payment 21,000 Investment cost and ending fair values for 20X1 and 20X2: 20X1 2 0X2 Cost 100,000 100,000 Fair value 110,000 134,000 Total gain 10,000 34,000 20X1 income statement information: Sales 1,670,200 Expenses 1,536,600 6) What is net income for 20X1 assuming the investment...
3 Same fact pattern as Questions 1 and 2. Problem 1, Question 3. Company A started business on January 1, 20X1, and bought the following piece of equipment. Cost of asset $150,000 Salvage 30,000 Useful life Tax rate 21% 20X1 estimated tax payment 1,800 Depreciation for book and tax purposes is as follows: Book Tax 20x1 40,000 100,000 20X2 40,000 20,000 40,000 0 20X1 income statement information: Sales 638,000 Expenses (does not include depreciation expense and tax expense) 510,000 20X3...
21% The next three questions use the below information. Problem 1, Question 1. Company A started business on January 1, 20X1, and bought the following piece of equipment. Cost of asset $150,000 Salvage 30,000 Useful life Tax rate 20X1 estimated tax payment 1,800 Depreciation for book and tax purposes is as follows: Book Tax 20x1 40,000 100,000 20x2 1 4 0,000 20,000 20x3 40,000 20x1 income statement information: Sales 638,000 Expenses (does not include depreciation expense and tax expense) 510,000...
Questions 4 and 5 use the below fact pattern. Problem 2, Question 5. Company B acquired the following piece of equipment. Your staff accountant computed the book and tax depreciation. It is up to you to determine the deferred tax amounts. Equipment cost $50,000 Salvage 5,000 Useful life Tax rate 21% Depreciation for book and tax purposes is as follows: Book 20X1 9 ,000 20,000 20x2 9,000 12,000 20X3 9,000 7,200 20X4 9,000 4,320 20X5 9,000 1,480 Tax 5) What...
Questions 4 and 5 use the below fact pattern. Problem 2, Question 4. Company B acquired the following piece of equipment. Your staff accountant computed the book and tax depreciation. It is up to you to determine the deferred tax amounts. Equipment cost $50,000 Salvage 5,000 Useful life Tax rate 21% Depreciation for book and tax purposes is as follows: Book Tax 20X19 ,000 20,000 20x2 9 ,000 12,000 20X3 9,000 7,200 20X4 9,000 4,320 20X5 9,000 1,480 4) What...
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