Straight-line depreciation-what is current earnings-profits

Assignment Help Financial Accounting

Reference no: EM13863501

As of December 31, 2015, Caledonia Corp. has taxable income of $150,000, which includes a $20,000 accelerated depreciation deduction; had straight-line depreciation been used, the deduction would have been $6,000. Also included in taxable income is an operating loss carry forward from a prior year of $3,000. Additionally, Caledonia earned $4,000 in municipal bond interest during the year. What is Caledonia Corp.'s current earnings and profits (Current E&P) for 2015?

Reference no: EM13863501

Questions Cloud

Journal entry to record the payroll tax expense for period : The payroll register of Seaside Architecture Company indicates $840 of Social Security and $218 of Medicare tax withheld on total salaries of $15,100 for the period. Provide the journal entry to record the payroll tax expense for the period. If an am..

Provisions regarding the division of net income : Xavier and Yolonda have original investments of $47,465 and $90,407 respectively in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%, salary allow..

Internal control of cash receipts : The procedures used for over-the-counter receipts are as follows. At the close of each day's business, the sales clerks count the cash in their respective cash drawers, after which they determine the amount recorded by the cash register and prepare t..

Receive as final cash distribution from the liquidation : The balance sheet of Marilyn and Monroe was as follows immediately prior to the partnership's being liquidated: cash, $22,286 other assets, $122,674 liabilities, $14,646 Marilyn capital, $58,416 Monroe capital, $71,898. The other assets were sold for..

Straight-line depreciation-what is current earnings-profits : As of December 31, 2015, Caledonia Corp. has taxable income of $150,000, which includes a $20,000 accelerated depreciation deduction; had straight-line depreciation been used, the deduction would have been $6,000. Additionally, Caledonia earned $4,00..

Compute total standard cost per unit : Kimm Company has gathered the following information about its product. Direct materials: Each unit of product contains 3.70 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.50 pounds. Compute Kimm’s t..

Considering investing in recuperator : The Cooper Company is considering investing in a recuperator. The recuperator will have an initial cost of $20,000 and a service life of 10 years. Operating and maintenance costs for the first year are estimated to be $1,500, increasing by $100 every..

About deferred tax liabilities : Which of the following are true about Deferred Tax Liabilities?

After preparing preliminary version of financial statements : After preparing a preliminary version of its financial statements, a company found that it made a mistake in computing bad debt expense on the books. The company needed to reduce Bad Debt Expense on its books by $100,000.

User Account

All Pages