If plant assets of a manufacturing company are sold at a gain of $1760000 with related income taxes of $550000, and the gain is not considered unusual, the income statement for the period would disclose these effects as O a prior period adjustment, net of applicable taxes, $1210000. O operating income, net of applicable taxes, $1210000. O again of $1760000 and an increase in income tax expense of $550000. O a gain from discontinued operations, net of applicable taxes, $1210000.

If plant assets of a manufacturing company are sold at a gain of $1760000 with related income taxes of $550000, and the gain is not considered unusual, the income statement for the period would disclose these effects as O a prior period adjustment, net of applicable taxes, $1210000. O operating income, net of applicable taxes, $1210000. O again of $1760000 and an increase in income tax expense of $550000. O a gain from discontinued operations, net of applicable taxes, $1210000.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter3: Taxes On The Financial Statements

Section: Chapter Questions

Problem 4BCRQ

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Information for 2023 follows for Marigold Corp Retained earnings, January 1, 2023 Sales revenue Cost of goods sold Interest income Selling and administrative expenses Unrealized gain on FV-OCI equity investments (gains/losses not recycled) Loss on impairment of goodwill Income tax on continuing operations for 2023 (assume this is correct) Assessment for additional income tax for 2021 (normal, recurring, and not caused by an error) Gain on disposal of FV-NI investments Loss from flood damage Loss on disposal of discontinued division (net of tax of $64,500) Loss from operation of discontinued division (net of tax of $42,250) Dividends declared on common shares Dividends declared on preferred shares $2,030,000 35,300,000 27,564,000 151,000 4,740,000 333,000 517,000 570,200 440,000 122,000 418,000 258,000 169,000 220,000 63,800
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During the current year an entity sold a piece of equipment used in production. The equipment had been accounted for using the revaluation method and details of the accounts and sale are presented below: Sales price P100,000 Equipment carrying amount (net) 90,000 Revaluation surplus 20,000 Which of the following is correct regarding recording the sale? O The gain that should be recorded in profit and loss is P30,000 O The gain that should be recorded in other comprehensive income is P10,000 O The gain that should be recorded in other comprehensive income is P30,000 O The gain that should be recorded in profit and loss is P10,000; the P20,000 revaluation surplus may be transferred to retained earnings.
On December 31, 2020, Landmark Company reported the following:Income before tax for accounting purposes, P11,850,000; Rent expensefor financial accounting purposes is P1,500,000 while rent expense for taxpurposes is P1,050,000; Tax depreciation is P3,000,000 while accountingdepreciation is P1,500,000; Loss on a case incurred but not yet paid sotax-deductible in the future is P600,000. The tax rate is 30%. Compute for the net income after tax.
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On December 31, 2020, Landmark Company reported the following:Income before tax for accounting purposes, P11,850,000; Rent expensefor financial accounting purposes is P1,500,000 while rent expense for taxpurposes is P1,050,000; Tax depreciation is P3,000,000 while accountingdepreciation is P1,500,000; Loss on a case incurred but not yet paid sotax-deductible in the future is P600,000. The tax rate is 30%. What is the amount of total deductible temporary difference?
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