Reference no: EM13341235
Mr Tom White, the president of White Crane Importing Ltd (WCIL), informed you that his firm has an accounting profit before tax (PBT) of $800,000, the corporate tax rate is 25.0 percent, and (during the tax year) WCIL experienced and journalised the following items:
i. The WCIL sales people spent $35,000 entertaining customers.
ii. WCIL won $60,000 in a lottery.
iii. Goodwill was found to be impaired and was written down by $45,000.
iv. Prepaid rent of $200,000 was paid for a new warehouse that will be used in the following tax year.
v. An accounting depreciation expense of $100,000 and for tax purposes will claim depreciation of $180,000.
vi. An accounting Warranty Expense of $210,000 and actual payouts for warranty costs of $260,000.
vii. Long-service leave was accrued for accounting purposes at $110,000 and the Long-service leave paid was $65,000.
viii. The Bad Debt Expense for accounting purposes was $70,000 and during the year $65,000 in Accounts Receivable (A/R) was written-off.
Required:
a) Calculate the Income Tax Expense and the Income Tax Payable (show the workings).
b) Write a memo to Mr. White that gives him the Income Tax Expense, the Income Tax Payable, and the difference between those two values. Also, name that difference and explain whether its attributes are the same as any other asset/(liability)?
|
What is the magnitude of the net force acting on kayak
: A person in a kayak starts paddling, and it accelerates from 0 to 0.8 miles/hour in a distance of 0.8 km. If the combined mass of the person and the kayak is 80 kg, what is the magnitude of the net force acting on the kayak
|
|
Divide the market equally among the three of them
: A, B, and C decide to act illegally as a cartel, to divide the market equally among the three of them, and to set the price and output that will maximize their total profits. What price and output do they set? What is the output level that each..
|
|
What is the magnitude of force propelling bobsled forward
: The speed of a bobsled is increasing because it has an acceleration of . At a given instant in time, the forces resisting the motion, including kinetic friction and air resistance, total 500 N.
|
|
Compute the propeller''s angular velocity
: An airplane propeller is rotating at 1250rpm, Compute the propeller's angular velocity in rad/s
|
|
Calculate the income tax expense
: Write a memo to Mr. White that gives him the Income Tax Expense, the Income Tax Payable, and the difference between those two values. Also, name that difference and explain whether its attributes are the same as any other asset/(liability)?
|
|
Find the magnitude and direction of the rockets acceleration
: A rocket of mass kg is in flight. Its thrust is directed at an angle of 60 degrees above the horizontal and has a magnitude of. Find the magnitude and direction of the rockets acceleration.
|
|
Calculate the velocity of the boat
: A child in a boat throws a 5.45-kg package out horizontally with a speed of 10.0 m/s. Calculate the velocity of the boat immediately after, assuming it was initially at rest
|
|
Determine what are the magnitudes of the normal force
: A car (m=2000 kg) is parked on a road that rises 20 degrees above the horizontal. What are the magnitudes of (1) the normal force and (2) the static frictional force that the ground exerts on the tires
|
|
Calculate the basic financial ratios
: Profitability Ratios-profit margin, asset turnover, return on assets, debt-to-equity ratio, return on equity-long-term Solvency Ratios-debt-to-equity ratio, debt to total assets, times interest earned, cash debt coverage
|