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- Can you please help me find what amount should be reported as income before tax in the financial statements? 1. The financial statements of Kare-Kare Company for the calendar year ending December 31, 2021 are authorized for issue on March 30, 2022. Income before tax was computed at P50,000,000 before the following events occurred in the company: a. The company had investments in shares held for trading which were recorded at the fair value of P600,000 on December 31, 2021. During the period up to March 1, 2022, there was a steady decline in the fair value of all the shares in the portfolio, and on March 1, 2022, the fair value had fallen to P500,000. b. A customer owing the company P300,000 filed for bankruptcy on February 2, 2022. The company included in its financial statements an allowance for doubtful accountsp ertaining to this customer of P100,000. c. A shipping vessel of the company with a carrying amount of P10,000,000 was destroyed at sea because of the missile fired by the…Below is the Retained Earnings account for the year 2025 for Coronado Corp. Retained earnings, January 1, 2025 Add: Gain on discontinued operations (net of tax) Net income Gain on sale of investments (net of tax) Cumulative effect on income of prior years in changing from LIFO to FIFO inventory valuation in 2025 (net of tax) Refund on litigation with government, related to the year 2022 (net of tax) Recognition of income earned in 2024, but omitted from income statement in that year (net of tax) Deduct: Write-off of goodwill (net of tax) Cash dividends declared Retained earnings, December 31, 2025 Retained Earnings, January 1, as Reported CORONADO CORP. Retained Earnings Statement For the Year Ended December 31, 2025 Correction of Error from Prior Period Adjustment for Change in Accounting Principle (Net of Tax) Retained Earnings, January 1, as Adjusted Add V: Net Income /(Loss) Less : Cash Dividends Declared Retained Earnings, December 31 $14,400 170,700 43,600 55,000 Prepare a…Accounting Exile Corporation has operating income of $42,000 and operating expenses of $69,000 in 2021. In 2022, it generates operating income of $85,000 and operating expenses of $74,000. What is Exile’s 2022 taxable income, as reported on its Form 1120?
- How do you get the answer on below? Corning-Howell reported taxable income in 2021 of $156 million. At December 31, 2021, the reported amount of some assets and liabilities in the financial statements differed from their tax bases as indicated below: Carrying Amount Tax Basis Assets Current Net accounts receivable $ 44 million $ 48 million Prepaid insurance 56 million 0 Prepaid advertising 40 million 0 Noncurrent Investments in equity securities (fair value)* 40 million 0 Buildings and equipment (net) 396 million 316 million Liabilities Current Deferred subscription revenue 48 million 0 Long-term Liability—compensated future absences 630 million 0 *Gains and losses taxable when investments are sold. The total deferred tax asset and deferred tax liability amounts at January 1, 2021, were $174.25 million and…1. What amount should be reported as income before tax in the financial statements? * 1. The financial statements of Kare-Kare Company for the calendar year ending December 31, 2021 are authorized for issue on March 30, 2022. Income before tax was computed at P50,000,000 before the following events occurred in the company: a. The company had investments in shares held for trading which were recorded at the fair value of P600,000 on December 31, 2021. During the period up to March 1, 2022, there was a steady decline in the fair value of all the shares in the portfolio, and on March 1, 2022, the fair value had fallen to P500,000. b. A customer owing the company P300,000 filed for bankruptcy on February 2, 2022. The company included in its financial statements an allowance for doubtful accounts pertaining to this customer of P100,000. c. A shipping vessel of the company with a carrying amount of P10,000,000 was destroyed at sea because of the missile fired by the Russian army which…The record of ABAKA Corporation, a closely-held corporation shows the following calendar years: Year 2018 Gross income, P4,500,000Allowable expenses, P 2,800,000Rental income, net of 5% withholding tax, P 475,000Interest on money market placement (net), P 90,000Inter-corporate dividends, P480,000Additional information: Dividends paid, P 1,700,000Payments, first three quarters, P 50,000Ordinary shares, P700,000Share premium, P200,000Year 2019 Gross income, P 3,200,000Expenses, P 3,000,000Net Income, P200,000Retained Earnings, P 500,000How much is the improperly accumulated earnings tax in 2018 ?
- For the year ended December 31, 2019, Nelson Co.’s income statement showed income of $435,000 before income, tax expense. To compute taxable income, the following differences were noted: Income from tax-exempt municipal bonds $60,000 Depreciation deducted for tax purposes in excess of depreciation recorded on the books 120,000 Proceeds received from life insurance on death of an insured employee 100,000 Corporate tax rate for 2019 30% Enacted tax rate for future periods 35% Required: 1. Calculate taxable income and tax payable for tax purposes. 2. Prepare Nelson’s income tax journal entry at the end of 2019.At December 31, 2025, Whispering Inc. had a deferred tax asset of $31,600. At December 31, 2026, the deferred tax asset is $62.000. The corporation's 2026 current tax expense is $55,300. What amount should Whispering report as total 2026 income tax expense? Total income tax expense for 2026 $Below is the Retained Earnings account for the year 2020 for Acadian Corp. Retained earnings, January 1, 2020 $257,600 Add: Gain on sale of investments (net of tax) $41,200 Net income 84,500 Refund on litigation with government, related to the year 2017 (net of tax) 21,600 Recognition of income earned in 2019, but omitted from income statement in that year (net of tax) 25,400 172,700 430,300 Deduct: Loss on discontinued operations (net of tax) 35,000 Write-off of goodwill (net of tax) 60,000 Cumulative effect on income of prior years in changing from LIFO to FIFO inventory valuation in 2020 (net of tax) 23,200 Cash dividends declared 32,000 150,200 Retained earnings, December 31, 2020 $280,100 Instructions a. Prepare a corrected retained earnings statement. Acadian Corp. normally sells investments of the type mentioned above. FIFO inventory was used in 2020 to…
- The following information was taken from the records of Swifty Inc. for the year 2025: Income tax applicable to income from continuing operations $314,840; income tax applicable to loss on discontinued operations $37,400; income tax applicable to unusual gain $40,800; income tax applicable to unusual loss $27,200; and unrealized holding gain on available-for-sale securities, net of taxes, $23,000. Unusual gain $120,000 Cash dividends declared $210,000 Loss on discontinued operations 110,000 Retained earnings January 1, 2025 780,000 Administrative expenses 310,000 Cost of goods sold 1,100,000 Rent revenue 56,000 Selling expenses 420,000 Unusual loss 80,000 Sales 2,700,000 Shares outstanding during 2025 were 100,000. (a) Prepare a single-step income statement for 2025. (Round earnings per share to 2 decimal places, eg. 1.48.) SWIFTY INC. Income StatementThe following tax expenses related to business were paid by Palmyra Trading in 2022:Business taxes, other than VAT, P20,000Documentary stamp taxes, P1,000Automobile registration fees, P3,000Import duty taxes, P50,000Postage stamp taxes, P500Stock transaction tax, P2,500Income tax, P600,000Value-added tax, P240,000Donor’s tax, P8,000How much is the amount of taxes deductible from gross income? a. P73,500 b. P73,000 c. P74,500 d. P76,000A domestic corporation presented the following information in 2019: REQUIRED: 1. Compute the net income using OSD 2. how much is the income tax due andpayable of the corporation if it started its operations in 2018?