(TCO B) On its December 31, Year 2, balance sheet, Shin Co. had income taxes payable of $13,000 and a current deferred tax asset of $20,000 before determining the need for a valuation account. Shin had reported a current deferred tax asset of $15,000 at December 31, Year 1. No estimated tax payments were made during Year 2. At December 31, Year 2, Shin determined that it was more likely than not that 10% of the deferred tax asset would not be realized. In its Year 2 income statement, what amount should Shin report as total income tax expense?
an ISO by the amount of the in a different amount for the AMT. Ash has no other sales of stock or adjustment. Keep adequate records for If you have a capital loss after other capital assets for 2010. Ash both the AMT and regular tax so that refiguring Schedule D for the AMT, enters a total negative adjustment of you can figure your adjustment. See apply the $3,000 capital loss limitation $118,000 on line 17 of his 2010
He must declare the sales proceeds. $1,000 gain on sale. Ken's stock sale proceeds | Amount | Sale Proceeds ($32 x 1,000 shares) | $32,000 | Less Selling Expenses | $0 | Amount Realized | $32,000 | Less Tax basis ($31 x 1,000 shares) | $31,000 | Gain on sale | $1,000 | c.) Ken received $25,000 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years for $210,000. Gain of $14,500 Ken's Annuity | Amount | Total investment into annuity | $210,000 | Number of payments | 20 | Return on capital for the payments | $10,500 | Ken's
Sam recognizes $8,000 of taxable income. Neither Bob nor Sam has any taxable income from this transaction. 7. (TCO I) Johnny, a cash basis taxpayer, owns two rental properties. Based on the following information, compute the amount that he must include in his 2012 gross rental income.
Lindley Textiles recently reported $12,500 of sales, $7,250 of operating costs other than depreciation, and $1,000 of depreciation. The company had no amortization charges and no non-operating income. It had $8,000 of bonds outstanding that carry a 7.5% interest rate, and its federal-plus-state income tax rate was 40%. How much was
A conceptual framework is a coherent system of interrelated objectives and fundamentals that can lead to consistent standards. 3. The first level of the conceptual framework identifies the recognition and measurement concepts used in establishing accounting standards. 4. The IASB has issued a conceptual framework that is broadly consistent with that of theUnited States.
A conceptual framework is a coherent system of interrelated objectives and fundamentals that can lead to consistent standards. 3. The first level of the conceptual framework identifies the recognition and measurement concepts used in establishing accounting standards. 4. The IASB has issued a conceptual framework that is broadly consistent with that of theUnited States.
Thus, the $11,000 distribution reduces the new $10,000 stock basis to zero, with a $1,000 LTCG. | Question 3 | | 1 / 1 point | A calendar year C corporation reports a $41,000 NOL in 2013, but it elects S status for 2014 and generates an NOL of $30,000 in that year. At all times during 2014, the stock of the corporation was owned by the same 10 shareholders, each of whom owned 10% of the stock. Kris, one of the 10 shareholders, holds an S stock basis of $2,300 at the beginning of 2014. How much of the 2014 loss, if any, is deductible by Kris?
Other Expenses and Losses | | | | Interest expense | | | 18,000 | | | | | Income before income tax | | | 323,525 | Income tax | | | 102,000 | Net income | | | $221,525 | Earnings per common share [($221,525 – $9,000) ÷ 80,000] | | | $2.66* | *Rounded TWAIN CORPORATION | Retained Earnings Statement | For the Year Ended June 30, 2014 | Retained earnings, July 1, 2013, as reported | | | $337,000 | Correction of depreciation understatement, net of tax | | | (17,700) | Retained earnings, July 1, 2013, as adjusted | | | 319,300 | Add: Net income | | | 221,525 | | | | 540,825 | Less: | | | | Dividends declared on preferred stock | | $ 9,000 | | Dividends declared on common stock | | 37,000 | 46,000 | Retained earnings, June 30, 2014 | | | $494,825 | PROBLEM 4-4 (Continued) (b) TWAIN CORPORATION | Income Statement | For the Year Ended June 30, 2014 | Revenues | | | Net sales | | $1,485,050 | Dividend revenue | | 38,000 | Total revenues | | 1,523,050 | Expenses | |
Problem 3.2 A – How does the income statement differ from the one presented in Exhibit 3.1 The largest difference between income statement for this question in compared to Exhibit 3.1 B – Did Best Care spend $367,000 on new fixed assets during the fiscal year 2011? If not, what is the economic rationale behind its reported depreciation expense? No, they were not new fixed assets for 2011. In accordance with GAAP, Best Care would derive by taking the historical cost, less the salvage value and dividing by the life expectancy in years. In addition it is considered a non-cash expense since the actual payment could have occurred many years before the expense is calculated.