User Account

All Pages

Calculate the amount of taxable income

Assignment Help Accounting Basics
Reference no: EM131794824

The following info is available for Reallylost Inc for 2004, its first year operations:

1 . Pre - Tax Accounting income was 500 , 000

2 . The ending balance in Accrued warranty costs was 40,000 . In addition, the company paid $10, 000 in warranty costs during 2004

3. Reallylost made a 100,000 installment sale in 2004. Cash collected on the sale in 2004 was 30,000.

4 . Reallylost paid 15,000 for life insurance premiums on its owners GW Brush and H.F. Clontin

5. The company purchased a new truck for 30,000 on January 1st . Its useful life is 5 years and does not have a salvage value. Tax depreciation for 2004 was 10,000. For book purposes the company use straight line deprecation.

6. The tax rate for all years is expected to be 40 %

Required

1 . Calculate the amount of taxable income for 2004

2 . Prepare a schedule calculating the amount of Deferred taxes for 2004

3 . Prepare the journal entry to record taxes payable and deferred taxes for 2004

Please show all work, thank you very much in advance!

Reference no: EM131794824

Questions Cloud

Prepare the entry to record the sales of asset d : Prepare the entry to record the sales of asset D for cash of $5,952. It was used for 6 years, and depreciated was entered under the composite method.
Compute the present value of the remaining cash flows : compute the present value of the remaining cash flows for these bonds as of December 31, 2017
Trace the execution of radix sort using diagrams : Trace the execution of radix sort using diagrams like those in the text for each of the following lists of integers.
Write a function to carry out a three-way merge : Write a function to carry out a three-way merge-that is, a procedure that merges three sorted files to form another sorted file.
Calculate the amount of taxable income : Calculate the amount of taxable income for 2004, Prepare a schedule calculating the amount of Deferred taxes for 2004
Recorded the accrued interest at december thirty first : Estimated uncollectible accounts expense to be 1.50 percent of sales on account. Recorded the accrued interest at December 31. 2014.
Write a function for this modified merge sort scheme : Write a function for this modified merge sort scheme, using quicksort to sort internally the subsists containing SIZE elements for some constant SIZE.
What is the maximum that she would be able to save in taxes : If Lisa is in the 35% marginal tax bracket, what is the maximum that she would be able to save in taxes in the current year as result of these corporate losses
Explain why the account sales tax payable : Explain why the account Sales Tax Payable is credited when a sale is made subject to a sales

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is georges tax basis for his preferred stock

George purchased 100 shares of Gruber, inc. common stock for $30,000 two years ago. During the current tax year, George received a nontaxable preferred stock dividend of 50 shares. George's preferred stock had a fair market value of $4,000, and the c..

  Which method yields the highest net income

Lopez Co. reported the following current-year data for its only product. The company uses a periodic inventory system, and its ending inventory consists of 300.

  Compute the estimated gross profit that would be recognized

Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period.

  Prepare the required journal entries for the transactions

The original roof of the building was removed and replaced with a new roof. The old roof had an estimated cost of $1,000,000

  Examine the various estate tax credits and describe how

please respond to the followinganalyze the various estate tax credits and discuss how they are beneficial to the

  Deere manufactures heavy equipment it sells equipment to

identify and explain when each of the following companies should recognize revenue.a. the gap is a retailer of

  Why food lion wrote down the current carrying value

For several years, a number of Food Lion, Inc. , grocery stores were unprofitable. Explain why Food Lion wrote down the current carrying value

  On april 2nd a corporation purchased for cash 5000 shares

on april 2nd a corporation purchased for cash 5000 shares of its own 10 par common stock at 15 a share. they sold 2000

  Messier inc manufactures cycling equipment recently the

messier inc. manufactures cycling equipment. recently the vice president of operations of the company has requested

  Food to go delivery service disposed of one of their

food to go delivery service disposed of one of their delivery cars after using it for two years. the records of the

  What is the adoption credit carl and jenny can claim

Carl and Jenny adopt a Russian orphan. What is the adoption credit Carl and Jenny can claim in 2016

  Preparing your adjusting and closing entries

Prepared a few of the regular monthly entries for Ed. Now, Big Ed's Motorcycle Shop is nearing the fiscal year-end

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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