For fiscal year 2021, ABC Corporation, a retailer, has P1.4 billion in gross sales, P560 million in cost of sales, and PI50 million in allowed deductions. According to the Audited Financial Statements, the company's total assets of PI80 million as of December 31, 2021 include P50 million in 1and and P25 million in building costs, with a total of P75 million in fixed assets. calculate the Income Tax Due for CY 2021, assuming ABC Corporation is in its fifth year of operation.
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- Ehrlich Company had the following information for 2021. 1. Pretax financial income for 2021 is $100,000. 2. The tax rate enacted for 2021 and future years is 20%. 3. Differences between the 2021 income statement and tax return are listed below: a. Warranty expense accrued for financial reporting purposes amounts to $7,000. Warranty deductions per the tax return amount to $2,000. b. Gross profit on construction contracts using the percentage-of-completion method per books amounts to $92,000. Gross profit on construction contracts for tax purposes amounts to $67,000. c. Depreciation of property, plant, and equipment for financial reporting purposes amounts to $60,000. Depreciation of these assets amounts to $80,000 for the tax return. d. A $3,500 fine paid for violation of pollution laws was deducted in computing pretax financial income. e. Interest revenue recognized on an investment in tax-exempt municipal bonds amounts to $1,500. Instructions: a. Compute…During 2021, Raines Umbrella Corporation had sales of $860,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $610,000, $110,000, and $125,000, respectively. In addition, the company had an interest expense of $87,000 and a tax rate of 21 percent. (Ignore any tax loss carryforward provisions and assume that interest is fully deductible.) a. What is the company's net income for 2021? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations.) b. What is its operating cash flow? (Do not round intermediate calculations.) a. Net income b. Operating cash flowFor the calendar year 2021, ABC Corporation, a retailer, has gross sales of Pl.4 billion, cost of sales of PS60 million, and permitted deductions of PISO million. Its total assets of PI80 million as of December 31, 2021, according to Audited Financial Statements, including PSO million in land and P25 million in building where the business entity is located, for a total of P75 million in fixed assets. Calkulate the Income Tax Due for CY 2021, assuming ABC Corporation is in its fifth year of operation.
- The following information can be found in Sanduc Merchandising Corporation's financial statement in 2019: cost of sales of 2,450,000; accumulated depreciation of 75,000; operating expenses of 1,050,000; corporate income tax of 32% sales of 4,800,000; 3-year bank loan of 1,000,000 that pays an interest rate of 8.5 per year. determine the net profit before tax of SanducoCaramel Corp's 2023 income statement showed pretax accounting income of $2,500,000. To compute the federal income tax liability, the following 2023 data are provided: Income from exempt municipal bonds- $100,000 Depreciation deducted for tax purposes in excess of depreciation deducted for financial statement purposes- $200,000 Income Tax Rate- 20% The entry to record Caramel Corp's income tax expense and income tax payable for 2023 will includeDuring 2021, Raines Umbrella Corporation had sales of $760,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $550,000, $90,000, and $95,000, respectively. In addition, the company had an interest expense of $94,000 and a tax rate of 21 percent. (Ignore any tax loss carryforward provisions and assume that interest is fully deductible.) a. What is the company's net income for 2021? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations.) b. What is its operating cash flow? (Do not round intermediate calculations.)
- Delta has interest receivable which has a carrying amount of $75,000 in its statement of financial position at 31 December 2020. The related interest revenue will be taxed on a cash basis in 2021. Delta has trade receivables that have a carrying amount of $105,000 in its statement of financial position at 31 December 2020. The related revenue has been included in its statement of profit or loss for the year to 31 December 2020. Required: According to HKAS 12 ‘Income Taxes’, what is the total tax base of interest receivable and trade receivables for Delta at 31 December 2020? A. $105,000 B. $75,000 C. Nil D. $180,000During 2021, Raines Umbrella Corporation had sales of $754,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $459,000, $101,500, and $147,000, respectively. In addition, the company had an interest expense of $73,200 and a tax rate of 24 percent. (Ignore any tax loss carryforward provisions and assume interest expense is fully deductible.) a. What is the company’s net income/loss for 2021? (Do not round intermediate calculations and enter your answer as a positive value.) b. What is the company's operating cash flow? (Do not round intermediate calculations.)ABC Company reported pretax financial income of P6,200,000 for the calendar year 2020. Included in the other income section of the income statement was P200,000 of interest revenue from government bonds held by the entity. The income statement also included depreciation expense of P500,000 for a machine that cost P3,000,000. The income tax return reported P600,000 as depreciation on the machine. The enacted tax rate is 30% for 2020 and future years. What is the current tax expense for 2020? (Round answer to whole number)
- this company. 1. Pretax financial income for 2021 is $100,000. 2. The tax rate enacted for 2021 and future years is 20%. 3. Differences between the 2021 income statement and tax return are listed below: a. Warranty expense accrued for financial reporting purposes amounts to $7,000. Warranty deductions per the tax return amount to $2,000. b. Gross profit on construction contracts using the percentage-of-completion method per books amounts to $92,000. Gross profit on construction contracts for tax purposes amounts to $67,000. c. Depreciation of property, plant, and equipment for financial reporting purposes amounts to $60,000. Depreciation of these assets amounts to $80,000 for the tax return. d. A $3,500 fine paid for violation of pollution laws was deducted in computing pretax financial income. e. Interest revenue recognized on an investment in tax-exempt municipal bonds amounts to $1,500. 4. Taxable income is expected for the next few years. (Assume (a) is…Shenron, Inc. had pre-tax accounting income of P1,350,000 and a tax rate of 40% in 2020, its first year of operations. During 2020 the company had the following transactions: Received rent from Master, Co. for 2021 P48,000 Municipal bond income P60,000 Depreciation for tax purposes in excess of book depreciation P30,000 Installment sales revenue to be collected in 2021 P81,000 For 2020 what is the amount of income taxes payable for Shenron, Inc? a. P579,600 b. P452,400 c. P514,800 d. P490,800Riyadh Ltd. generated total sales of $32,565,420 during fiscal 2021. Depreciation and amortization for the year total $1,278,120, and the cost of goods sold was $21,400,000. Interest expense for the year was $6,341,250 and selling, general, and administrative expenses total $2,556,610 for the year. If Riyadh Ltd. tax rate was average 30 percent, what is its net income after taxes? (Show your calculations)