Calculate abc taxable income

Assignment Help Accounting Basics
Reference no: EM133149536

Question - ABC Company (ABC), a manufacturer of hybrid engine vehicles, had pretax financial income of P30 billion for the year 20X1, its first year of operations. ABC has a current tax rate of 24% and a future enacted tax rate of 21%. The following differences between financial and taxable income were reported by ABC for the current year (all numbers in millions):

i. Excess of tax depreciation over book depreciation 11,500

ii. Interest revenue on municipal bonds 1,600

iii. Estimated warranty expense over actual expenditures 9,000

iv. Fines paid 6,400

v. Unrealized gains on marketable securities recognized for financial reporting 3,000

Required - Calculate ABC's taxable income?

Reference no: EM133149536

Questions Cloud

Common outsourcing types practiced by companies : What are the THREE (3) most common outsourcing types practiced by companies and describe FOUR (4) factors that lead to the strategy of outsourcing.
Identify the complex attitudes : Identify the complex attitudes, opinions, and issues that people bring to the workplace including, prejudice, discrimination, stereotypes, and ethnocentrism.
Demonstrate knowledge of a variety of capital budgeting tool : Use capital budgeting tools to compute future project cash flows and compare them to upfront costs - Employing capital budgeting metrics
Buying habits of entertainers and politicians : Julie Powers collects overdue accounts for a large credit card company. She has access to records of all transactions for any customer. Julie sometimes looks up
Calculate abc taxable income : Excess of tax depreciation over book depreciation 11,500. Interest revenue on municipal bonds 1,600. Calculate ABC taxable income
Development between disparat terminological systems : Which of the following is the most accurate observation concerning map development between disparat terminological systems?
What is the safe work statement method : 1. What is the safe work statement method? Write your answer
Explain five criteria for revenue recognition : Explain the five criteria for revenue recognition per the standard. Examine how the current standard differs from past revenue recognition guidance.
Why is finance so important in sports management : Why is finance so important in sports management?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare cranes journal entries to record the issuance

Prepare Crane's journal entries to record (a) the issuance of the note and (b) the December 31 interest payment

  Discuss what are some possible objections to this practice

What are some possible objections to this practice as a means of obtaining job applicants

  How much is the gain or loss for the equipment sale entry

Adelphi uses the double declining method for depreciation. Using this information, how much is the gain or (loss) for the equipment sale entry made on January

  Explains the implication of international accounting

HI6025 Accounting Theory and Current Issues Assignment - Explains the implication of International Accounting in Australian context

  Which would be good candidates to be entered

Which would be good candidates to be entered in the General Journal? Payroll for time worked in April but the pay date in May.

  What would best approach to between manually exclusive

Assuming repeatability and given the information, What would be the best approach to select between manually exclusive projects A and B ?

  Make a summary of accounting for investments

Make a summary of accounting for investments. This includes accounting for equity securities, rules of PFRS 9, debt securities and also investment in associates

  Barnum distributors wants a projection of cash receipts and

barnum distributors wants a projection of cash receipts and cash payments for the month of november. on november 28 a

  What is the amount of money created in the banking system

What is the amount of money created in the banking system due to an initial deposit of $1,000 if the required reserve is 5%

  What is the effect on Xiang net employment income

What is the effect on Xiang's net employment income, that is, calculate the taxable benefit that would be added to Xiang net employment income for tax purposes

  What is the correct accrued liability

The Accrued Compensated Absences account at the beginning of the period is P360,000. What is the correct Accrued Liability

  Who determines ethical standards for advertising

Who determines ethical standards for advertising,In what ways has advertising affected American culture

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd