Year Before-Tax Cash Flow |-$7,500,000 650,000 950,000 2,750,000 1,900,000 5 1 2 3 800,000 6 |450,000 4)
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A corporation with a 27% combined income tax rate is considering the following investment in research equipment. Prepare an after-tax cash flow table assuming MACRS
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- 14. Leslie Inc. has correctly determined the following information related to operations for 2018: Revenue from sales Expenses Income before income taxes P7,000,000 4,000,000 P3,000,000 In reviewing the records, you discovered the following items: During 2018, the company discovered an error in depreciation in 2017. The correction of this error, which has not been recorded, will result in an increase in depreciation for 2017 of P200,000. During 2018, the company sustained a loss of P400,000 because of flood, which destroyed its inventory. The company charged retained earnings and credited inventory for P400,000.10. Payments made for income taxes P760,000 Income tax payable increased by 200,000 Deferred tax liability, Jan. 1 360,000 Deferred tax liability, Dec. 31 470,000 Deferred tax asset, Jan. 1 85,000 Deferred tax asset, Dec. 31 65,000 Income tax expense under accrual basis accounting is a. 1,090,000 b. 960,000 c. 850,000 d. 830,000ements What is the total Wealth Accumulation of the following investment assuming the available after tax reinvestment rate is 5%? IRR 10.70% O $4,690,000 O $4,821,078 O $4,848,844 $4,905.989 n 0 $ 1 S 2 $ 3 $ AS 5 $ Investment $ (3,000,000) 240,000 250,000 260,000 266,000 3,674,000
- (Corporate income tax) Last year Sanderson, had The cost came to 52 5 expenses were Km paid $151,000 in interest on its bank loans Also, the corporation received $54,000 in dividend income from a company in which it owned less than 20 percent of its shares) but paid $22,000 in the form of dividends to its own common stockholders Use the corporate tax rates shown in the popup window to calculate the corporation's tax liability What are the fem's average and marginal taxes? The firm's tax liability for the year is (Round to the nearest dollar)1. Use the following information to answer the following questions: Taxable income Tax rate $ 0 – $ 50,000 15% $ 50,001 – $ 75,000 25% $ 75,001 – $100,000 34% $ 100,001 – $335,000 39% $ 335,001 – $10.000 million 34% $10,000,001 – $15.000 million 35% $15,000,001 – $18.333 million 38% $18,333,334 and above 35% A. If a firm has taxable income of $16.2 million, its marginal tax rate is . B. If a firm has taxable income of $16.2 million, its average tax rate is _____.Case 7. On January 1, 2020, Power Corporation approved a plan to dispose of a business segment. It is expected that the sale will occur on April 30, 2021. On December 31, 2020, the carrying value of the net assets of the segments was P4,000,000 and the net recoverable amount was P3,600,000. During 2016, the company paid employees severance and relocation costs of P200,000 as a direct result of the discontinued operations. The revenues and expenses of the discontinued segment during 2020 were as follows: (Income tax rate is 35%) Revenue 4,400,000 Expense 5,800,000
- Compute the income tax due in 2021. A. 50,000B. 800,000C. 290,000D. 400,000WhyRU Company usually depreciates its equipment using straight line method for accounting purposes, but for tax purposes its sum-of-the-years method. WhyRU Company acquired the equipment through purchase amounting to P2,400,000 on January 1,2018. Assume a tax rate of 30%. Useful life is 4 years. WhyRU Company made the following income in its income tax return available through reports for 2018 – P800,000; 2019 – P890,0000; 2020 – P1,200,000; 2021 – P1,500,000 There is no other differences between WhyRU's accounting income and taxable income for years 2018, 2019, 2020 and 2021 other than for the difference in depreciation for the equipment described.1. What is the tax due and payable amount in fiscal year 20x1? Fiscal year June 20, 20x1 (5th year) 20x2 Sales 80,000,000 75,000,000 Cost of Sales 50,000,000 46,875,000 Allowable Deductions excluding NOLCO 32,000,000 25,000,000 2. Using the information above, how much is tax due in fiscal year 20x2?
- 1. How much is the net share in the profit or loss of the associate (investment income) in 2021? P480,000 P825,000 P420,000 P135,000 2. How much is the carrying amount of the investment as of December 31, 2021? P7,815,000 P8,025,000 P7,680,000 P7,125,000LO.2 Oak Corporation has the following general business credit carryovers. If the general business credit generated by activities during 2019 equals 36,000 and the total credit allowed during the current year is 60,000 (based on tax liability), what amounts of the current general business credit and carryovers are utilized against the 2019 income tax liability? What is the amount of unused credit carried forward to 2020?How much is the total income tax expense recorded for the year ended December 31, 2019? a. P246,000 b. P270,000 c. P540,000 d. P786,000
