For 2020, Forrway Corporation, an Accrual Basis calendar year corporation, had Net Income Per Books of $111.550 and the following transactions Premiums on Life Insurance Policy on its key employees-$6.000, Excess Capital Losses-$12.000, Excess Tax Depreciation-$9,000: Life Insurance Proceeds on ife of its key employees-$65.000: Rent Income received in 2020- $30,000 (S20,000 is prepaid and relates to 2020): Tax-Exempt Interest Income - $8.000, Federal Income Tax lability for 2020 -$15.450, Prepaid Rent received and properly taxed in 2019 (but not eamed for Financial Accounting purposes until 2020)-$5,000, Interest Expense on Tax-Exempt Interest Income item-$2.000. The total amount" added" to Net Income Per Books for Forway Corporation in its Schedule M-1 Reconcilation for the tax year of 2020 is OS 80,000 O$ 55.450 OS 87.000 O$167.000
For 2020, Forrway Corporation, an Accrual Basis calendar year corporation, had Net Income Per Books of $111.550 and the following transactions Premiums on Life Insurance Policy on its key employees-$6.000, Excess Capital Losses-$12.000, Excess Tax Depreciation-$9,000: Life Insurance Proceeds on ife of its key employees-$65.000: Rent Income received in 2020- $30,000 (S20,000 is prepaid and relates to 2020): Tax-Exempt Interest Income - $8.000, Federal Income Tax lability for 2020 -$15.450, Prepaid Rent received and properly taxed in 2019 (but not eamed for Financial Accounting purposes until 2020)-$5,000, Interest Expense on Tax-Exempt Interest Income item-$2.000. The total amount" added" to Net Income Per Books for Forway Corporation in its Schedule M-1 Reconcilation for the tax year of 2020 is OS 80,000 O$ 55.450 OS 87.000 O$167.000
Chapter19: Corporations: Distributions Not In Complete Liquidation
Section: Chapter Questions
Problem 35P
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning