User Account

All Pages

What is the pre-tax accounting income

Assignment Help Financial Accounting
Reference no: EM132492263

The records for Kalman Inc. show the following data for calendar 2020:

Point 1. Gross profit on instalment sales recorded on the books was $100,000. Gross profit from collections of instalment receivables was $50,000.

Point 2. Golf club dues were $3,800.

Point 3. Machinery was acquired in January 2020 for $300,000. Kalman uses straight-line depreciation over a ten-year life (no residual value). For tax purposes, Kalman uses CCA at 14% for 2020 after considering the half-year rule.

Point 4. Dividends received from a Canadian corporation were $4,000.

Point 5. The estimated warranty liability related to 2020 sales was $19,600. Warranty repair costs paid during 2020 were $13,600. The remainder will be paid in 2021.

Point 6. Pre-tax accounting income is $250,000. The enacted income tax rate is 25%.

Instructions

Question a) What is the pre-tax accounting income, to calculate taxable income.

Question b) What are the adjusting journal entries to record income taxes for 2020.

Reference no: EM132492263

Questions Cloud

Create the payoff matrix for game : Create the payoff matrix for this game. Does Sony have a dominant strategy? If so, what is it? Does Microsoft have a dominant strategy? If so, what is it?
Calculate the rate of return on investment in the future : What do need to know to calculate the rate of return on investment in the future? If the fund invested 5,000 in 2019, with an average fifteen annual return
Diagnosis - information about diagnosis and isolation : Diagnosis and Add more information about diagnosis, isolation, culture, serology etc -
Make sure you draw two figures-one for the borrowers : Are there any substitution effect or income effect. Make sure you draw two figures, one for the borrowers and one for the lenders.
What is the pre-tax accounting income : What is the pre-tax accounting income, to calculate taxable income. What are the adjusting journal entries to record income taxes for 2020.
What are advantages of usage of color in data visualizations : What are the advantages and disadvantages of the usage of color in data visualizations? Provide at least three advantages and three disadvantages.
What kind of data should be compiled in the selected visual : Answer the following: What kind of data should be compiled in the selected visual? What kinds of data should not be compiled in the selected visual?
Adverse selection problems in internal labor markets : Give examples of how government intervention helps reduce moral hazard and adverse selection problems in internal labor markets.
Calculate basic earning and various diluted earnings : Calculate basic earning and various diluted earnings per share for 2020. Provide your answers in a layering format showing all calculations.

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