Compute taxable income as well as income tax payable

Assignment Help Financial Accounting

Reference no: EM134289

Question

1) The Brandon Company a manufacturer as well as the Schimmel Company a retailer entered into a business combination whereby Brandon Company acquired for cash each of the outstanding voting common stock of Schimmel Corporation

?The Brandon Company is making consolidated financial statements immediately afterward the consummation of the newly formed business combination. How must the Brandon Company determine the amounts reported as assets and liabilities of the Schimmel Company? Presumptuous the transaction resulted in goodwill how will the amount of goodwill be determined?

?Under what situation must Schimmel Company be included in the entity's consolidated financial statement?

2) Sagehen Enterprises reports pretax financial income of $80,000 for 2012. The following cause taxable income to be different from pretax financial income:

?Depreciation on the tax return is greater than depreciation on the income statement by $15,000

?Rent collected on the tax return is $25,000 greater than rent earned on the income statement

?Fines reported on the income statement were $10,000

The current tax rate is 30%. There are no deferred taxes at the beginning of 2012

Compute taxable income as well as income tax payable for 2012. Which of the differences are temporary and which are permanent?

For additional facts refer to the Homework Assignment Rubric document in the Assignment Guidelines and Rubrics section of the course

Reference no: EM134289

Questions Cloud

Problem summary and solution recommendation : Problem Summary and Solution Recommendation Issues Identified Sources Used Discussion of Support

How can you validate such a financial statement : 4) Comment on the degree to which the statement of revenues, expenditures and other changes in fund balance captures the district's cost of services. How can you validate such a financial statement

Explain the difference in operating income : Explain the difference in operating income for January and February and March under variable costing and absorption costing

Compute taxable income as well as income tax payable : Compute taxable income as well as income tax payable for 2012. Which of the differences are temporary and which are permanent

Provide examples to clarify and amplify your discussion : Describe key issues of the case as they relate to Mr. Friehling's actions, or inactions, in relation to the AICPA's Code of Professional Conduct. Identify as well as describe the issues and provide examples to clarify and amplify your discussion. ..

Discuss applicable codification references : Applicable Codification references Related presentation and disclosure issues for the notes Any additional clarifying information needed from company management

Complete the tentative minimum tax base : For the year 2012, complete the corporation's AMTI Complete the tentative minimum tax Complete the tentative minimum tax base Is there an amount of the AMT? If so, what amount? Assume no ACE adj

User Account

All Pages