F Ltd. deducted the following reserves on its income statement for the current year: $50,000 reserve...
F Ltd. deducted the following reserves on its income statement for the current year: $50,000 reserve for doubtful accounts, $40,000 reserve for warranty claims, and $250,000 reserve for amounts due after the end of the year for merchandise sales with two- and three-year payment terms. Determine the amount that is not deductible for tax purposes.
Homework Answers
Reserve for doubtful accounts $50,000 is not deductible for Tax purpose. Reserve for warranty claims $40,000 deductible for Tax purpose if they are provided to its customers and the all-events test has been met and economic performance has occurred.
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F Ltd. deducted the following reserves on its income statement
for the current year: $50,000 reserve...
For the year ended December 31, 2020, Sweet Ltd. reported income before income taxes of $190,500. Prior to 2020 taxable...
For the year ended December 31, 2020, Sweet Ltd. reported income before income taxes of $190,500. Prior to 2020 taxable income and accounting income was the same each year. In 2020, Sweet Ltd. paid $123,900 for advertising; of this amount, $41,300 was expensed in 2020. The remaining $82,600 was treated as a prepaid expense for accounting purposes and would be expensed equally over the 2021-2022 period. The full $123,900 was deductible for tax purposes in 2020. The company paid $32,500...
Cass Corporation reported pretax book income of $10,000,000. During the current year, the reserve for bad...
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I Love Corporate Accounting Ltd commences operations on 1 July 2018 and presents its first statement...
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Refrence Deegan. (2016). Financial Accounting . McGraw-Hill Education, Australia Milk Park Ltd is retailing company which...
Refrence
Deegan. (2016). Financial Accounting . McGraw-Hill
Education, Australia
Milk Park Ltd is retailing company which commenced operations on the 1st of July 2018. At the financial year end 30th June 2019, the firm furnished its statement of comprehensive income and the statement of financial position as follows: Statement of Comprehensive Income for the year ended 30 June 2019 2$ 2$ 1,144,000 (475,500) 668,500 85,000 753,500 Sales Revenue Cost of sales Gross profit Other income: interest income Less operating expenses:...
John Hicks Company reports the following revenues and expenses in its pretax financial income for the...
John Hicks Company reports the following revenues and expenses
in its pretax financial income for the year ended December 31,
2016: Revenues total $229,600 and expenses total $160,100. The tax
rate enacted for 2016 is 35%, but in 2015 Congress enacted a 30%
rate for 2017 and future years. Differences between the 2016 income
statement and tax return are listed below: Warranty expense accrued
for financial reporting purposes amounts to $5,000. Warranty
deductions per the tax return amount to $13,900....
Question 3. Castle Towers Ltd reported the following assets and liabilities in its draft balance sheet...
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Using the following financial information, create an income statement reflecting business activity during the year, and...
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Classifying Balance Sheet and Income Statement Accounts and Computing Current Ratio Shoprite Holdings Ltd is an...
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The following are selected transactions of Pendlebury Department Store Ltd. (PDSLO for the current year ending...
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1. Burnham Company collected rent of $3,800 during Year 1. For income tax reporting, the rent...
1. Burnham Company collected rent of $3,800 during Year 1. For income tax reporting, the rent is taxed when collected. For financial reporting, the rent is recognized as income in the period earned. At the end of Year 1, the unearned portion of the rent collected during the year amounted to $440. Burnham had no temporary differences at the beginning of the current year. Assume an income tax rate of 30%. What is the amount of the deferred tax asset...
Cass Corporation reported pretax book income of $10,000,000. During the current year, the reserve for bad debts increased by $100,000. In addition, tax depreciation exceeded book depreciation by $200,000. Cass Corporation sold a fixed asset and reported book gain of $50,000 and tax gain of $75,000. Finally, the company received $250,000 of tax-exempt life insurance proceeds from the death of one of its officers. Compute the company's current income tax expense or benefit. (Amounts to be deducted should be indicated...
Refrence
Deegan. (2016). Financial Accounting . McGraw-Hill
Education, Australia
Milk Park Ltd is retailing company which commenced operations on the 1st of July 2018. At the financial year end 30th June 2019, the firm furnished its statement of comprehensive income and the statement of financial position as follows: Statement of Comprehensive Income for the year ended 30 June 2019 2$ 2$ 1,144,000 (475,500) 668,500 85,000 753,500 Sales Revenue Cost of sales Gross profit Other income: interest income Less operating expenses:...
John Hicks Company reports the following revenues and expenses
in its pretax financial income for the year ended December 31,
2016: Revenues total $229,600 and expenses total $160,100. The tax
rate enacted for 2016 is 35%, but in 2015 Congress enacted a 30%
rate for 2017 and future years. Differences between the 2016 income
statement and tax return are listed below: Warranty expense accrued
for financial reporting purposes amounts to $5,000. Warranty
deductions per the tax return amount to $13,900....
Using the following financial information, create an income statement reflecting business activity during the year, and a balance sheet reflecting the firm's end-of-year financial position. Financial Information All values are end-of-year unless otherwise stated Accounts Payable 12,000 Accounts Receivable 10,000 Accruals 10,000 Accumulated Depreciation 100,000 Beginning-of-year Inventory 50,000 Beginning-of-year Retained Earnings 120,000 Cash 7,000 Common Stock 121,500 Cost of Goods Sold 200,000 Current Portion of Long Term Debt 1,500 Depreciation Expense 25,000 Dividends 40,000 Gross Property, Plant, and Equipment 400,000...
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