Given: Builtrite had sales of $700,000 and COGS of $280,000. In addition, operating expenses were calculated at 25% of sales. Builtrite also received dividends of $40,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $55,000 was realized during the year along with a capital loss of $70,000 |
1.What is Builtrite’s taxable income?
2.Based on their taxable income, what is Builtrite’s tax liability
3. If we add to our problem that Builtrite also had $20,000 in interest expense, how much would this interest expense cost Builtrite after taxes?
4. If Builtrite had experienced a long-term capital loss of $30,000 (instead of the $70,000 long-term capital loss stated in the problem), and still had the $55,000 long-term capital gain stated in the problem, which of the following is correct:
the tax liability would increase by $25,000 |
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taxable income would increase by $40,000 |
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taxable income would not change |
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taxable income would increase by $25,000 5. This problem is not related to the above problem) Last year Builtrite had retained earnings of $140,000. This year, Builtrite had true net profits after taxes of $65,000 which includes common stock dividends received of $10,000, and also paid a preferred dividend of $25,000. What is Builtrite’snew level of retained earnings?
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Question 1
What is Builtrite's assessable income?
Correct Answer:
$257,000
Question 2
Based on their assessable compensation, what is Builtrite's obligation liability?
Correct Answer:
$83,480
Question 3
If we add to our worry that Builtrite similarly had $20,000 in premium cost, what sum would this superior cost Builtrite after taxes?
Correct Answer:
$12,200
Question 4
If Builtrite had experienced a whole deal capital loss of $30,000 as opposed to the $70,000 whole deal capital hardship communicated in the issue, (despite the $55,000 whole deal capital get) which of the going with is correct:
Correct Answer:
assessable wage would increase by $25,000Question 5(This issue isn't related to the above issue) Last year Builtrite had held benefit of $140,000. This year, Builtrite had net advantages after obligations of $65,000 and paid a favored benefit of $25,000. Builtrite in like manner got essential stock benefits of $10,000 from stock had. What is Builtrite's new level of held benefit?
Change Answer:
$180,00
Given: Builtrite had sales of $700,000 and COGS of $280,000. In addition, operating expenses were calculated...
Builtrite had sales of $700,000 and COGS of $290,000. In addition, operating expenses were calculated at 25% of sales. Interest expense was based on $100,000 of bonds outstanding with an interest rate of 7%. Builtrite also received dividends of $40,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $55,000 was realized during the year along with a capital loss of $45,000 Based on the above information, answer the following 4 questions: 1....
Builtrite had sales of $700,000 and COGS of $290,000. In addition, operating expenses were calculated at 25% of sales. Interest expense was based on $100,000 of bonds outstanding with an interest rate of 7%. Builtrite also received dividends of $40,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $55,000 was realized during the year along with a capital loss of $45,000 Based on the above information, answer the following 4 questions: What...
Builtrite had sales of $700,000 and COGS of $290,000. In addition, operating expenses were calculated at 25% of sales. Interest expense was based on $100,000 of bonds outstanding with an interest rate of 7%. Builtrite also received dividends of $40,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $55,000 was realized during the year along with a capital loss of $45,000 Based on the above information, answer the following 5 questions: 1.What...
Builtrite had sales of $700,000 and COGS of $280,000. In addition, operating expenses were calculated at 25% of sales. Builtrite also received dividends of $50,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $70,000 was realized during the year along with a capital loss of $50,000 Based on the above information answer questions 3 and 4 I think I got 1 and 2 correct. Question 1 2 pts What is Builtrite's taxable...
Builtrite had sales of $700,000 and COGS of $290,000. In addition, operating expenses were calculated at 25% of sales. Interest expense was based on $100,000 of bonds outstanding with an interest rate of 7%. Builtrite also received dividends of $40,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $55,000 was realized during the year along with a capital loss of $45,000 What is Builtrite's taxable income?
Builtrite had sales of $700,000 and COGS of $290,000. In addition, operating expenses were calculated at 25% of sales. Interest expense was based on $100,000 of bonds outstanding with an interest rate of 7%. Builtrite also received dividends of $40,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $55,000 was realized during the year along with a capital loss of $45,000 Builtrite has $7,000 in interest expense, how much does this interest...
Last year Builtrite had retained earnings of $120,000. This year, Builtrite had true net profits after taxes of $75,000 which includes common stock dividends received of $20,000. Builtrite also paid a preferred dividend of $15,000. What is Builtrite’s new level of retained earnings? options are $190,000 $200,000 $210,000 $180,000
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