7 Benjamin Company: Sales Operating expenses Dividends paid eBook Print References Assume that a tax rate of 21 percent is applicable to both companies. a. On consolidated financial statements for 2021, what are the income tax expense and the income tax currently payable if Abbey and Benjamin file a consolidated tax return as an affiliated group? b. On consolidated financial statements for 2021, what are the income tax expense and income tax currently payable if they choose to file separate returns? a. Income tax expense Income tax payable b. Income tax expense Income tax payable Amount
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- LO.3, 4, 5 Contrast the income taxation of individuals and C corporations as to: a. Alternative minimum tax. b. Dividend income. c. Qualified business income deduction of 20 percent. d. Use of the cash method of accounting. e. Accounting period used for tax purposes. f. Applicable tax rates. g. Due date of the tax return.Interperiod and Intraperiod Tax Allocation Income Tax allocation is an integral part of generally accepted accounting principles. Income tax allocation consists of both inraperiod and inter-period tax allocation. Required 1. Explain the difference between interperiod income tax allocation 2. Explain how a corporation discloses its income tax expense (or Credit) for the year under intraperiod allocation 3.Provide an example of intraperiod tax allocation on a corporations income statement that includes income from continuing operations, a loss from the sale of a discontinued component and a gain from the operation f the discontinued. Assume a 30% tax rate.27. Which of the following is a type of regular income tax a. Individual Income tax b. Corporate Income Tax c. Mixed Earner Income Tax O d. Both A and B 28. A taxpayer using GAAP cash - basis on a calendar year shall compute the taxable income using * a. Tax cash basis on a calendar year b. Tax cash basis on a fiscal year c. Tax accrual basis on a calendar year d. Tax accrual basis on a fiscal year
- c. Calculate the taxable income for State X for each company. State X taxable income Sharon Carol Josey Janice d. Determine the tax liability for State X for the entire group.Which of the following is correct in respect to a base rate entity? Question 15Select one: A. No more than 80% of its assessable income for the year of income is base rate entity passive income and a tax rate of 25% applies B. More than 80% of its assessable income for the year of income must be base rate entity passive income and a tax rate of 30% applies C. No more than 80% of its assessable income for the year of income is base rate entity passive income and a tax rate of 30% applies D. More than 80% of its assessable income for the year of income must be base rate entity passive income and a tax rate of 25% appliesQ1. Taxable income and applicable tax rates for C.J. Company’s first four years are shown below. For each year, taxable income and pretax financial income are identical. In the table below, taxable income is before any consideration of NOL carryback and carryforward. The enacted tax rates were known at 1/1/2018. Taxable Income Enacted tax rate 2018 $200 20% 2019 ($300) 15% 2020 $340 25% 2021 $210 25% Now assume that C.J. opted to carryback its 2019 NOL and carryforward any unused NOL to future years. Complete the table below for 2018 through 2021 to show the amount of income tax payable to the IRS or the refund due from the IRS for each year. Put your answer in the table below. Show tax payable as a positive number and tax refund as a negative number. Year Tax…
- Compute NOPAT Selected income statement information for 2018 is presented below for Home Depot Inc. and Lowe’s Companies Inc. Assume the statutory tax rate is 22%. Pretax Net Average Net Nonoperating Tax Operating Company ($ millions) Ticker Sales NOPBT Expense Expense Assets Home Depot HD $65,787 $9,442 $592 $2,088 $15,332 Lowe’s LOW 43,356 2,443 379 657 12,358Compute NOPAT Selected income statement information for 2018 is presented below for Home Depot Inc. and Lowe’s Companies Inc. Assume the statutory tax rate is 22%. Pretax Net Average Net Nonoperating Tax Operating Company ($ millions) Ticker Sales NOPBT Expense Expense Assets Home Depot HD $65,787 $9,442 $592 $2,088 $15,332 Lowe’s LOW 43,356 2,443 379 657 12,358 a. Compute the following measures for both companies. 1. NOPAT Company NOPAT Home Depot Answer Lowe's Answer 2. RNOA Note: 1. Select the appropriate numerator and denominator used to compute RNOA from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute RNOA. Company Numerator Denominator RNOA Answer Answer Home Depot Answer Answer Lowe's Answer Answer 3. NOPM Note: 1. Select the appropriate numerator and denominator used to compute NOPM from the drop-down menu options. 2. Enter…Compute NOPAT Selected income statement information for 2018 is presented below for Home Depot Inc. and Lowe’s Companies Inc. Assume the statutory tax rate is 22%. Pretax Net Average Net Nonoperating Tax Operating Company ($ millions) Ticker Sales NOPBT Expense Expense Assets Home Depot HD $65,787 $9,442 $592 $2,088 $15,332 Lowe’s LOW 43,356 2,443 379 657 12,358 a. Compute the following measures for both companies. 1. NOPAT Company NOPAT Home Depot Answer Lowe's Answer 2. RNOA Note: 1. Select the appropriate numerator and denominator used to compute RNOA from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute RNOA. Company Numerator Denominator RNOA Answer Answer Home Depot Answer Answer Lowe's Answer Answer 3. NOPM Note: 1. Select the appropriate numerator and denominator used to compute NOPM from the drop-down menu options. 2. Enter the numerator and…
- The purpose of Schedule M-1 on the corporate tax return is to: Reconcile accounting (book) income to taxable income. Summarize the dividends received deduction calculation. List the officers of the corporation and their compensation. Calculate the net operating loss deduction.Select the best answer to the tax credit and corporate and partnership income tax issues. Mamey, Inc. had taxable income of $138,500 in 2020. What is the income tax expense for the year 2020? a. $29,085 b. $25,623 c. $34,625 d. $27,700 Which of the following items might not generally appear on the Schedule M-1 reconciliation a. Exempt interest income b. Meal expenses c. Office material expenses d. Federal income tax expense Cubey Industries, Inc. has a net book income of $76,100. For the year it had an income tax expense of $18,900. During the year Cubey received pandemic exempt income of $5,000 and had total food expense of $1,000 on books. What is the result of the Schedule M-1 reconciliation per Schedule line 10. a. $81,600 b. $90,500 c. $95,500 d. $95,000 The net operating losses (NOLs) that a corporation has available to be used against taxable income for the year 2020 are subject to a. A limitation of 90% of taxable income b.…The entity made corporate estimated tax payment in the To compute the provision for income tax, the following Tax depreciation in excess of financial statement amount 160,000 Pecorino Company had pretax financial income of P2,500,000 3. What amount of income tax payable should be reported? 4. What amount of total tax expense should be reported? Problem 16-30 (IFRS) in the current year. amount of 180,000 during the current year. information was provided: 360,000 Interest income received Tax depreciation in excess of financial statement amount Rent received in advance Corporate tax rate 280,000 30% 1. What amount of permanent difference between book income and taxable income existed at year-end? a. 520,000 b. 360,000 c. 800,000 d. 280,000 2. What amount of current tax expense should be reported? a. 786,000 b. 510,000 c. 750,000 d. 678,000 000,00 a: 498,000 b. 606,000 c. 330,000 d. 570,000 4. What amount of total tax expense should be repor0 a. 714,000 b. 726,000 c. 642,000 d. 594,000 570