Determining the company income tax liability

Assignment Help Accounting Basics
Reference no: EM13156677

Alpha Company reported net incomes in 2007 and 2008 before sustaining a significant operating loss in 2009. All of the 2009 loss can be carried back against the income of 2007 and 2008 for purposes of determining the company's 2009 income tax liability. How should the carryback be presented in the company's 2009 financial statements?

a. As an extraordinary item in the income statement

b. As a revenue from operations in the income statement

c. As the correction of an error in the retained earnings statement

d. As a reduction in the operating loss on the income statement for the year 2009

Reference no: EM13156677

Questions Cloud

Binomial probability that one tax return involves fraud : Suppose a random sample of 20 tax returns from small business is examined. What is the binomial probability that at least one tax return involves fraud?
Productivity of the sheet metal workers : Explain carefully in terms of production theory why it might be that no amount of "cracking down" can increase worker productivity at CF&D.
What is the firms revenue function : What is the firms revenue function? Graph this function. Give a plausible reason why a firms demand might look like this.
What might the consequence be of pouring the plates : all aspects of the kirby Bauer test are standardized to assure reliability of comparison with the published standards.
Determining the company income tax liability : All of the 2009 loss can be carried back against the income of 2007 and 2008 for purposes of determining the company's 2009 income tax liability. How should the carryback be presented in the company's 2009 financial statements?
Tracking the movements of the earliest americans : Discuss the historical detective work involved in tracking the movements of the earliest Americans.
Determine the total protein content in a particular fraction : To determine the total protein content in a particular fraction, what must you multiply by what? Hint: there are 3 quantities!
Probability that selected chocolate bar has more calories : Approximately normally distributed with σ=10. Determine the probability that a randomly selected chocolate bar will have: 4.3 more than 155 calories.
Explain the assumptions that go into the correct formula : Specify the correct and \simpli ed" formulas for this rate of returnfrom the text and course lectures, and explain the assumptions that go into thecorrect formula.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the interest rate in purchase transaction

What is the interest rate, to the nearest percent, used in discounting this purchase transaction?

  What is net income using variable costing

Star Services, Inc., a manufacturer of telescopes, began operations on October 1 of the current year. During this time, the company produced 50,000 units and sold 35,000 units at a sales price of $500 per unit. Cost information for this year is sh..

  Determine the total bond interest expense

Kelly issues $315,000 of 4%, 15 year bonds dated january 1, 2009, that pay interest semiannually on june 30 and december 31. They are issued at 253,263, and their market rate is 6% at the issue date.

  Absence of an agreement to the contrary

Carlos owes Gord Motors 20k and in default. Rick pays Gord Motors the entire amount. In the absence of an agreement to the contrary, Rick can recover from peter.

  Computing annuity payment

Gary Whitmore is a high school sophomore. He currently has $7,500 in a money market account paying 5.65 percent annually. He plans to use this and his savings over the next four years to buy a car at the end of his sophomore year in college.

  Accounting practice problem

On January 30, Tensing Corporation bought supplies of $2,000. The supplies were all consumed in February. Determine which of the following statements is true regarding the accounting for these supplies.

  Infrequent losses that are not considered extraordinary

In its 2010 income statement, what amount should James report as total infrequent losses that are not considered extraordinary.

  Consolidated balance sheet after acquisition

Based on the preceding information, what amount of total liabilities was reported in the consolidated balance sheet immediately after acquisition?

  Equity securities-expressing losses

Boulter, Inc. began business on January 1, 2006. At the end of December 2006, Boulter had the following investments in equity securities:

  Initial investment in fixed assets

What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project?

  Net operating income-operating assets

Last year, the House of Orange had sales of $826,650, net operating income of $81,000, and operating assets of $84,000 at the beginning of the year and $90,000 at the end of the year. What was the company's turnover rounded to the nearest tenth?

  Cost and an allowance account

Prepare journal entries required at December 31, 2010, and December 31, 2011, assuming that the inventory is recorded at cost and an allowance account is adjusted at each year-end under a perpetual system.

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