Kline company an accrual basis calendar year corporation

Reference no: EM13577258

Kline Company, an accrual basis calendar year corporation, reported $560,000 net income before tax on its financial statements prepared in accordance with GAAP for 2012. Kline's records reveal the following information: (Kline's MTR is 35%. and all items have been properly reported under GAAP).

. The allowance for bad debts as of January 1, 2012 was $80,000. Write-offs for the year totaled $20,000, and the addition to the allowance for the year was $50,000. The allowance as of December 31 was $110,000.

. Kline paid $75,000 fine to the State of New Jersey for a violation of state pollution control laws.

. Klines lawyers established an estimated fund for a pending lawsuit, which they expect to cost the company $125,000. This liability meets the fixed and determinable standard relating to contingent liabilities under GAAP . Kline actually paid out $120,000 relating to this law suit in 2012.

. Kline received $45,000 in Municipal Bond interest that is not taxable.Kline had tax depreciation of $89,000 and book depreciation of $94,000 Compute Kline's taxable income, and prepare the required journal entry to record the tax expense, tax payable and deferred account, if any.

Reference no: EM13577258

Questions Cloud

If she claims two withholding allowances how much will her : anna is single with one four-year-old child. she earns a monthly salary in 2012 of 5000. her filing status is head of

Good health company inc began business in 2008 and has : good health company inc. began business in 2008 and has operating results as listed below. in 2010 it generated a net

A life insurance company wants to update its actuarial : a life insurance company wants to update its actuarial tables. assume that the probability distribution of the

Assuming all seven options earn similar returns before : lo1 lo2 lo3 laurie is thinking about investing in one or several of the following investment options corporate bonds

Kline company an accrual basis calendar year corporation : kline company an accrual basis calendar year corporation reported 560000 net income before tax on its financial

Find the three missing frequencies of the table given that : an incomplete frequency disribution is given below class intervals frequency 0-10 4 10-20 16 20-30 ---- 30-40 ----

Question test the claim that 14 of a candy makers candies : question test the claim that 14 of a candy makers candies are red. use a 0.05 significance and the table to answer the

Lester enterprises comparative balance sheets included : lester enterprises comparative balance sheets included inventory of 90200 at december 31 2011 and 70600 at december 31

Coose any item that affects the basis of an asset chapter : choose any item that affects the basis of an asset and indicate how it affects the gair or loss recognized on that

User Account

All Pages