User Account

All Pages

What adjustment should be made to income tax expense

Assignment Help Financial Accounting
Reference no: EM132755024

Problem 1: X owns 100% of the common shares of Y. Both companies pay income tax at the rate of 40%. On January 1st, 2020, X reported a gain of $20,000 when it sold equipment to Y. This equipment had a remaining life of 5 years on the date of the intercompany sale. When preparing the consolidated income statement for 2021, what adjustment should be made to income tax expense?

Option 1: Increase it by $1,600
Option 2: Decrease by $1,600
Option 3: Increase it by $4,800
Option 4: Decrease it by $4,800.

Reference no: EM132755024

Questions Cloud

Find how much cash would be paid to which partner : How much cash would be paid to which partner? Assume the partnership has $50,000 in cash, $1,130,000 in non-cash assets, and $30,000 in liabilities.
Explain the cultures and factors that mark adulthood : Explain the cultures and factors that mark adulthood and Analyze the value and limitations of utilizing indicators to define adulthood?
Behavior related to the power distance index : Explain any implications for behavior related to the Power distance Index, individual vs. collectivism, and masculinity vs. femininity dimensions.
What is victor portion of any unrealized gain : John Inc and Victor Inc. formed, What is Victor portion of any unrealized gain or loss arising from the transfer of John's assets to Jinxtor on January 1, 2020?
What adjustment should be made to income tax expense : X owns 100% of the common shares of Y. When preparing the consolidated income statement for 2021, what adjustment should be made to income tax expense?
What is the standard deviation of the estimated returns : Carson Inc.'s manager believes that economic conditions during the next year will be strong, normal, or weak, and she thinks that the firm's returns will have.
Solve the selling price for bonds with a face value : Solve the selling price for bonds with a face value of $720,000 and face rate of 6%, issued to yield 8%, due in 10 years, paying interest semi-annually.
Provide the journal entry to record employer payroll taxes : Doug, an employee of Cayman Travels, Inc., has gross salary for March of $4,000. The entire amount is under the OASDI limit of $118,500, and thus subject.
Calculate the selling price for bonds with face value : Calculate the selling price for bonds with face value of $17,920,000, due in 15 years, paying 8% interest semi-annually, issued at par.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd