Determine Nighthawk current-year deduction

Assignment Help Accounting Basics
Reference no: EM132660824

Problem - In 2019, Nighthawk Corporation, a calendar year C corporation, has $3,700,000 of adjusted taxable income, $125,000 of business interest income, zero floor plan financing interest, and $1,400,000 of business interest expense.

Required -

a. Assume that Nighthawk has average gross receipts for the prior three-year period of $33,000,000. Determine Nighthawk's current-year deduction for business interest.

b. Assume that Nighthawk has average gross receipts for the prior three-year period of $23,000,000. Determine Nighthawk's current-year deduction for business interest.

Reference no: EM132660824

Questions Cloud

Compute Hummingbird taxable income for the year : Hummingbird Corporation, a closely held C corporation that is not a PSC, has $40,000 of net active income, Compute Hummingbird taxable income for the year
Write down full mass action equations : Write down full mass action equations and Simulate the Py production by lactate sensor in MATLAB with different concentrations of lactate
Determine the amount in aud : Prepare the journal entries for the above dates, up to 1 June 2021,showing the amount of exchange gain or loss. Determine the amount in AUD
Analyze special training requirements for female expatriates : Analyze the special training requirements for female expatriates. To support your work, use your course and text readings and also use the South University.
Determine Nighthawk current-year deduction : Assume that Nighthawk has average gross receipts for the prior three-year period of $33,000,000. Determine Nighthawk's current-year deduction
The Cold War and US Diplomacy : Summarize a situation that required U.S. diplomatic efforts during the president's time in office.
How do calculate the company taxable profit : Jaguar Ltd purchased a machine on 1 July 2016 at the cost of $640,000. Calculate the company's taxable profit and hence its tax payable for 2017.
Differentiate between a group and a team : The size, quality, and strength of a team depend on the individual contributions of each team member. Teamwork is developed
Compute the amount of Aqua recognized gain on the sale : Aqua Corporation purchases nonresidential real property on May 8, 2016, for $1,000,000. Compute the amount of Aqua recognized gain on the sale

Reviews

Write a Review

Accounting Basics Questions & Answers

  Discuss how much do they have increase their sales revenue

If they want to increase the after tax income for 2014 by $18, by how much do they have to increase their sales revenue

  What different does it make to the worst case scenario in

what different does it make to the worst case scenario in example 17.1 is a the option are american rather than

  Equipment with a cost of 8301500 an estimated residual

equipment with a cost of 83015.00 an estimated residual value of 4166.00 and an estimated life of 12 years was

  The payback method of evaluating an investment fails to

answer the following truefalse questions1. investment center managers are evaluated on their use of center assets to

  Compute cost of goods available for sale

Marlow Company uses a perpetual inventory system. It entered into the following calendar-year 2011 purchases and sales transactions.

  Short memo to respond to mr ramos

Electown manufactures circuit boards for computer-controlled appliances for the home. Required: Short memo to respond to Mr. Ramos

  Regional delivery service

REGIONAL DELIVERY SERVICE

  Find the year-end balance in the allowance

Assuming the company estimates bad debts at an amount equal to 2% of credit sales. Find the year-end balance in the allowance

  Estimate the business toolsbusiness finance menu bar

Access and review the entrepreneurial information at Business Owner's Toolkit [Toolkit. cch.com]. Access and review its New Business Cash Needs Estimate.

  Determine the break-even points in sales units

The Atlantic Company sells a product with a break-even point of 4,320 sales units. Determine the break-even points in sales units

  Journalize the entries required for gate city cycles

Journalize the entries required for Gate City Cycles, assuming Gate City uses the direct write-off method.

  What is the balance in the inventory account

What is the balance in the inventory account at the end of March assuming no additional sales if Rosierre utilizes the FIFO inventory method?

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