Using the corporate tax rates in the book

Assignment Help Financial Accounting

Reference no: EM131211222

OMG corp. ceased operations in September of 2014 after being in business for over a decade with a fiscal year ending March 31; and distributed its remaining assets to its shareholders in October 2014. OMG’s final tax return for the year beginning on April 1st and ending on Sept. 30 reported $120,000 taxable income.

Instruction:

A) Compute OMG Inc’s tax for its last year using the corporate tax rates in the book.

B) Assume that OMG operates an ongoing business and filed the short-period return described above because the IRS granted permission to change from a fiscal year ending March 31^th to a fiscal year ending September 30th . How does this change in fact affect the tax computation?

Reference no: EM131211222

Questions Cloud

What is the company mission statement and vision statement : What is the company's mission statement? What is the company's vision statement? What role do these have on the way the business operates? Do the company's actions seem to align to their vision and mission statements? How might the mission and vision..

The year end deferred tax asset or liability : GAAP Income before tax 600 650 525. This asset was a MACRS 3yr. Asset for tax purpose; for GAAP into service for 4 of 12 months of 2xx1 consider no other depreciable assets. Compute YE 2xx0 Deferred tax asset or liability [NET] Compute for 2xx1, 2xx2..

Compute the income tax burden on this profit : Mr. Morad, who is in the 25% tax bracket, is the sole shareholder of Shiraz bakery, Shiraz’s average annual net profit from business (before deduction of Morad’s salary) is $135,000. Compute the income tax burden on this profit, ignoring any payroll ..

Compute the allowable cost recovery deductions reported : On July 2 of 2014, Corporation ABC purchased a 7year personalty asset for $65,000, and on October of 2015, placed in service a 15 years asset which was purchased for $38,000. ABC takes advantage of Section 179 deductions for both assets. Compute the ..

Using the corporate tax rates in the book : OMG corp. ceased operations in September of 2014 after being in business for over a decade with a fiscal year ending March 31; and distributed its remaining assets to its shareholders in October 2014. Compute OMG Inc’s tax for its last year using the..

What is the amount of the gain and loss : Kevin bought 265 shares of Intel stock on January 1, 2015 for $76 per share with a brokerage fee of $165. Then, Kevin sells all 265 shares for $88 per share on December 12, 2015. The brokerage fee on the sale was $215. What is the amount of the gain/..

Cost of leasehold improvements must be expensed annually : Pension and retirements cost of employees are examples of the cost that should follow Unicap rules. Gross income equals all income from all sources minus allowable deductions. Start-up costs exceeding $5,000 should be amortized over 15 years. Cost of..

Lower cost or market application to inventory : Which statement is true concerning the LCM (lower cost or market) application to inventory?

Net long term capital gain : In the current year, Norris, an individual, has $52,000 of ordinary income, a Net Short Term Capital Loss (NSTCL) of $9,800 and a Net Long Term Capital Gain (NLTCG) of $2,900. From his capital gains and losses, Norris reports:

User Account

All Pages