The following information relates to interstate trucking

Assignment Help Accounting Basics
Reference no: EM13482501

The following information relates to Interstate Trucking for its first year of operations (data in millions ofdollars):

Pretax accounting income: $150
Pretax accounting income included:
Overweight fines (not deductible for tax purposes) 5
Depreciation expense 70
Depreciation on the tax return using MACRS: 110
The applicable tax rate is 40%. There are no other temporary or non temporary differences.

Interstate's taxable income ($ in millions) is:

1)  $40.
2)  $(25)
3)  $110.
4)  $115.

Reference no: EM13482501

Questions Cloud

Prepare a partial balance sheet for the company at : on december 31 2997 the company has 7m of short term debt inthe form of notes payable to the bank due in 2008. on
Safe travel produces car seats for children from newborn to : safe travel produces car seats for children from newborn to 2 years old. the company is worried because one of its
Determine whether bills return on sales ratio has met the : stacy yoo president of caremore inc an appliance manufacturer in seattle washington has been trying to decide whether
I the company uses the double-declining-balance method of : flip company purchased equipment on july 1 2011 for 90000. it is estimated that the equipment will have a 5000 salvage
The following information relates to interstate trucking : the following information relates to interstate trucking for its first year of operations data in millions
Cost of goods sold was increased by 7 million to correct an : the preliminary 2013 income statement of alexian systems inc. is presented belowalexian systems inc. income statement
The equipment that was bought had a fair market value of : the equipment that was bought had a fair market value of 450000 but the actual purchase price was 400000. they signed a
The home model is a high-volume 54000 units half-gallon : fireout inc. manufactures steel cylinders and nozzles for two models of fire extinguishers 1 a home fire extinguisher
Comment on any significant problem or areas of cost savings : heritage furniture co. uses a standard cost system. one of thecompanys most popular products is an oak

Reviews

Write a Review

Accounting Basics Questions & Answers

  Cash disbursements for manufacturing overhead

The February cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

  Increase in a deferred tax liability

Which of the following usually results in an increase in a deferred tax liability?

  Depreciation for annual adjustment purposes

Which extended the useful life of the truck for an additional two years beyond that originally estimated (salvage value is still estimated at $24,000). In computing depreciation for annual adjustment purposes, expense is calculated for each month ..

  The selling and administrative expense budget of fenley

The selling and administrative expense budget of Fenley Corporation is based on the number of units sold, which are budgeted to be 2,500 units in January.

  Describe the respective roles of the securities and

describe the respective roles of the securities and exchange commission sec and the internal revenue service irs in the

  How many years until he can establish the foundation

Derrick Lee just received a signing bonus of $1,000,000. His plan is to invest this payment in a fund that will earn 6%, compounded annually. (Hint: Use tables in text.)

  What is a characteristic line

What is a characteristic line? How is this line used to estimate a stock's beta coefficient? Write out and explain the formula that relates total risk, market risk, and diversifiable risk.

  Land to the corporation in exchange

Karen, in forming a new corporation, transfers land to the corporation in exchange for the 100 percent of the stock of the corporation. Karen's basis in the land is $275,000, and the corporation assumes a liability on the property in the amount of..

  If the average level of outstanding receivables is 700000

assume that sunshine products inc has an agreement with shady finance company to factor its receivables. shady charges

  How does valuing an investment under the equity method

On January 10, 2012 Badger Co. purchased 30% of the outstanding stock of Crest Co. fir $123,000. Crest paid total dividend to all shareholders of $15,000 on July 15. Crest had a net loss of $25,000 for 2012.

  Use the above data to prepare in thousands of dollars

the following data in thousands of dollars have been taken from the accounting records of the maroon corporation for

  Stock and a note payable in the amount

Albert transfers land (basis of $140,000 and fair market value of $320,000) to Gold Corporation for 80% of its stock and a note payable in the amount of $80,000. Gold assumes Albert's mortgage on the land of $200,000.

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