Homework Answers
As we all know CPI means consumer price index which a tool for
measuring inflation.
(a) In the given case CPI in 2018 is 175 and in
2020 will be 185. Therefore there will be inflation during this
period which can be calculated as follows:-
Inflation rate = [(New value of CPI- Old value of CPI) / Old value of CPI ] times hundred
Therefore Inflation rate = (185-175) /175 = 5.71%
So, the income tax schedule should be adjusted as follows by increasing the real household income with 5.71% :-
| Household Income (2020) |
Tax due (% of household income) |
| < $ 21,143 | 10% |
| $21,144 - $ 31,713 | 12% |
| $31,714 - $52,855 | 15% |
| $52,856 - $ 84,568 | 20% |
| > $84,568 | 25% |
(b) Now if we want to calculate income tax legislature for 2008 we'll apply reverse calculation
The inflation rate will be = [175(New)- 125(Old)]/ 125(Old) times hundred
Inflation rate = 40%
Therefore the present 2018 tax schedule is made after taking into
consideration 40% inflation in real income in 2018 from 2008. So
the tax schedule for 2008 would look like (after reducing 40%
inflation by dividung the present real income by 140 times hundred)
:-
| Household income (2008) | Tax due (% of household income) |
| < $14,285 | 10% |
| $14,286 - $ 21,428 | 12% |
| $21,429 - $ 35,714 | 15% |
| $35,715 - $ 57,143 | 20% |
| > $57,143 | 25% |
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Household Income Taxes Due (percent of household income) < $20,000 10 % $20,001 – $30,000 12...
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please do in excel (1) Indicate how deferred income taxes should be presented on the balance...
please do in excel
(1) Indicate how deferred income taxes should be presented on the balance sheet. Problem 3. Walsh Services computed pretax 1 wish Services computed pretax financial income of $220.000 for 2017 and $288,000 for 2018. In preparing the income 2017 and 2018: ... me year, the tax accountant determined the followine differences between financial income and taxable income for 2017 2018 (1) Nondeductible expenses $40,000 30,000 (2) Nontaxable revenues 14,000 22,000 (3) Unearned rent of next two...
Problem 3. Walsh Services computed pretax financial income of $220,000 for 2017 and 5288,000 for 2018....
Problem 3. Walsh Services computed pretax financial income of $220,000 for 2017 and 5288,000 for 2018. In preparing the income tax return for the year, the tax accountant determined the following differences between financial income and taxable income for 2017 and 2018: 2017 2018 (1) Nondeductible expenses $40,000 30,000 (2) Nontaxable revenues 14,000 22,000 (3) Uneamed rent of next two years received 20,000 (4) Installment sales in financial income but not in taxable income 70,000 The temporary Installment sales difference...
Problem 3. Walsh Services computed pretax financial income of $220,000 for 2017 and 288,000 for 2018....
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Just need to see if #1 is correct and need #2 answered Income Statement and Statement...
Just need to see if #1 is correct and need
#2 answered
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Just need to see if #1 is correct and need #2 answered Income Statement and Statement...
Just
need to see if #1 is correct and need #2 answered
Income Statement and Statement of Retained Earnings Background: Husky Sports Inc. started its business in January 2018. At the beginning of its 2020 calendar-year accounting period, Husky, Inc. had retained earnings of $1,500,000. During 2020 (year 3 in business), Husky Sports Inc. reported income from continuing operations before taxes of $600,000. The following additional transactions occurred in 2020 but were not included in the $600,000. Assume all of...
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consolidated U.S. federal tax return. (This case will not consider
the evaluation of the state jurisdictions; it will only consider
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the questions are highlighted in yellow loss co had the following items of income and deductions...
the questions are highlighted in yellow
loss co had the following items of income and deductions fir the
current year
in addition, loss co has the following capital loss carry
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tables after each year.
calculate the dividends recieved deduction and net operatibg
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please do in excel
(1) Indicate how deferred income taxes should be presented on the balance sheet. Problem 3. Walsh Services computed pretax 1 wish Services computed pretax financial income of $220.000 for 2017 and $288,000 for 2018. In preparing the income 2017 and 2018: ... me year, the tax accountant determined the followine differences between financial income and taxable income for 2017 2018 (1) Nondeductible expenses $40,000 30,000 (2) Nontaxable revenues 14,000 22,000 (3) Unearned rent of next two...
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Just need to see if #1 is correct and need
#2 answered
Income Statement and Statement of Retained Earnings Background: Husky Sports Inc. started its business in January 2018. At the beginning of its 2020 calendar-year accounting period, Husky, Inc. had retained earnings of $1,500,000. During 2020 (year 3 in business), Husky Sports Inc. reported income from continuing operations before taxes of $600,000. The following additional transactions occurred in 2020 but were not included in the $600,000. Assume all of...
Just
need to see if #1 is correct and need #2 answered
Income Statement and Statement of Retained Earnings Background: Husky Sports Inc. started its business in January 2018. At the beginning of its 2020 calendar-year accounting period, Husky, Inc. had retained earnings of $1,500,000. During 2020 (year 3 in business), Husky Sports Inc. reported income from continuing operations before taxes of $600,000. The following additional transactions occurred in 2020 but were not included in the $600,000. Assume all of...
LOL (the “Company”), an SEC registrant with a calendar year-end,
is a manufacturer and distributor of sports equipment. The Company
was created in 1989 and is headquartered in Southern California.
The Company has manufacturing operations and numerous sales and
administrative locations in the United States. LOL files a
consolidated U.S. federal tax return. (This case will not consider
the evaluation of the state jurisdictions; it will only consider
the federal jurisdiction.)
As LOL’s auditors, you are now performing the Company’s...
the questions are highlighted in yellow
loss co had the following items of income and deductions fir the
current year
in addition, loss co has the following capital loss carry
forward and NOL carry forward schedules. update the carry over
tables after each year.
calculate the dividends recieved deduction and net operatibg
loss for the following three years
н B C D E F G Dividends Received Deduction and Net Operating Loss Example Loss Co. had the following items of...
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