Reference no: EM133016827
Question - X Inc. owns 80% of Y Inc.You were given the following information for inter company transactions in 2020:
X sold inventory to Y. The profit before tax on this sale was $10,000. 60% of the inventory remained in the warehouses of Y at the end of the years.
Y sold inventory to X. The profit before tax on this sale was $15,000. 25% of the inventory remained in the warehouse of X at the end of the year.
Y sold land to X at before tax profit of $50,000.
Required -
a. What would be the amount of realized profit after tax on the sale of inventory to Y by X at the end of the year, assuming a tax rate of 40%.
b. What would the amount of deferred tax to be recorded on the consolidated balance sheet at the end of the year for the transaction on the sale of inventory to X by Y? Assume a tax rate of 30%.
c. Assuming the land was not sold to outsiders at the end of the year, what would be the amount of Deferred taxes to be recorded on the Consolidated Balance sheet attributable to this transaction, assuming a tax rate of 30%.
|
Determine diluted earnings per share for the year ended
: The company had revenues of $79,800 and expenses of $43,300 for 2020, Determine diluted earnings per share for the year ended December 31, 2020
|
|
What the net tax payable or refundable for the year
: She does not have the private health insurance cover. What the net tax payable (or refundable) for the 2020-21 income tax year
|
|
Is victor required to recognize any income
: Is Victor required to recognize any income from the purchase of the refrigerator, the receipt of the service contract, and the service call
|
|
Determine its break-even point in sales units
: If the company continues to use the old material, determine its break-even point in both sales units and sales dollars of each individual product
|
|
What would be the amount of realized profit after tax
: What would be the amount of realized profit after tax on the sale of inventory to Y by X at the end of the year, assuming a tax rate of 40%
|
|
Will a deduction be allowed for an additional cost
: Will a deduction be allowed for an additional cost of $1,600 paid to pest control experts who have treated the remaining parts of the building
|
|
Explain potential benefits of it initiatives
: IT projects require large amounts of capital and selecting one project often means foregoing others. Explain potential benefits of IT initiatives
|
|
What is the current price of the shares
: Investors require a 16% return on the shares during the first three years, a 14% return in the next three years, What is the current price of the shares
|
|
Explain the implementation process of the abc system
: Briefly explain the implementation process of the ABC system. Explain, Why organization need to change their overhead absorption method
|