2. NET PROFIT RATIO NET PROFIT/SALES X 100 = % (NB use net profit figure before tax has been taken out) Leave the formula in. Now add in the figures from the Income Statement or Balance sheet and calculate the ratio. Then describe what this ratio shows and explain what it means. 3.
Prior period adjustments are added to (or deducted from) the beginning retained earnings balance. Which of the following would be reported as other comprehensive income? An unrealized holding gain on available-for-sale securities is reported as other comprehensive income. The correction of an error is reported, net of tax, as an adjustment to the opening balance of retained earnings. Losses on impairment and gains from sales are reported as part of net income.
Years-of-service amortization method. T 13. Expected return and actual return. F 14. Unexpected gains and losses.
The issue is to determine how the reimbursement of expenses, in the amount of $25,000 should be treated for Federal income purposes. According to Code Sec. 162 (a), all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business shall be deducted including the following: compensation for personal services actually rendered, any travel expenses, and rental or other payments for the trade or business. The $25,000 would be considered as gross income from Code Sec. 61 (a) (1) as defined above as compensation for services, however, it may also be
c. Within the net amount of installment accounts receivable. d. As an addition to the related installment accounts receivable. 3. Durler Company's account balances at December 31 for Accounts Receivable and the related Allowance for Doubtful Accounts are $800,000 and $13,000, respectively. From an analysis of accounts receivable, it is estimated that $28,000 of the December 31 receivables will be uncollectible.
a. 224 b. 254 c. 255 d. 265 12. What would the value of the last octet of the subnet mask be if the CIDR notation for an address is 192.168.1.16/28? a.
Also includes deferrals under a SIMPLE retirement account that is part of a section 401(k) arrangement. E—Elective deferrals under a section 403(b) salary reduction agreement F—Elective deferrals under a section 408(k)(6) salary reduction SEP G—Elective deferrals and employer contributions (including nonelective deferrals) to a section 457(b) deferred compensation plan H—Elective deferrals to a section 501(c)(18)(D) tax-exempt organization plan. See “Adjusted Gross Income” in the Form 1040 instructions for how to deduct. J—Nontaxable sick pay (information only, not included in boxes 1, 3, or 5) K—20% excise tax on excess golden
Their cash flow is the net income plus depreciation. C. Now, suppose the company changes its depreciation calculation procedure (still within GAAP) such that its depreciation expense doubled. How would this change affect Brandywine’s net income, total profit margin, and cash flow? The depreciation will be $3,000,000. Their total revenue will be subtracted from their total expense which will be their net income.
Consult your state withholding tax tables (see Resources) and the employee’s state income tax form to determine state income tax withholding. Involuntary deductions also include wage garnishments; consult the garnishment paperwork for instructions on how to handle the deduction. o
3. Which of the following is not considered a primary authority? a. Tax Court case b. Regulation c. Revenue Ruling d. Tax Service Week Two: Basics of Individual Taxation Objective: Determine gross income and adjusted gross income.