Suppose a registered business enterprise is already subject to the 5% special corporate income tax. During the year, it had sales of P40,000,000, direct cost of P22,000,000, and operating expenses of P7,500,000. Calculate the 5% SCIT.

Suppose a registered business enterprise is already subject to the 5% special corporate income tax. During the year, it had sales of P40,000,000, direct cost of P22,000,000, and operating expenses of P7,500,000. Calculate the 5% SCIT.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...

See similar textbooks

Related questions

Q: An S corporation earns $ 7.20 per share before taxes. The corporate tax rate is 39%, the personal…

A: The earnings per share is $7.20. The personal tax rate on non-dividend income is 36%.

Q: Xavier Corporation ends the year with net income of $250,000 and long term capital gains of $30,000.…

A: In the given case, the long term capital gains are treated as short term capital gains as there is…

Q: (EBIT).

A: Tax is calculated by subtracting EBIT minus the interest expense & multiplied by the respective…

Q: The Foyer Company had an enacted income tax rate of 25%. The company ended Year 1 with a deferred…

A: Given that: Year 1 deferred income tax liability = $30,000 Year 2 deferred income tax liability =…

Q: A domestic corporation, in its third year of operations, had:

A: Corporates can deduct state taxes , excise and fuel taxes , federal…

Q: A company made an additional (incremental) income of $10,000 during the last week of the year. This…

A: Answer:- Tax liability definition:- Tax liability is the mount of money owed to tax authorities in…

Q: The following are the composition of the total gross income of a domestic corporation which is…

A: SOLUTION- THE TAX LEVIED ON MINIMUM CORPORATE INCOME TAX IS 2 % ON GROSS INCOME EARNED BY THE…

Q: If a company's Income tax rate Is 30% and its annual depreclation deduction Is $80,000, then the…

A: Since depreciation deduction is debited to profit or loss account/income statement, we will save…

Q: 35. A domestic corporation has the following income and expenses for 2021 taxable year: Gross sales…

A: Income tax in the Philippines is flat 30% on the net taxable income for both the domestic…

Q: Thornton, Inc., had taxable income of $129632 for the year. The company's marginal tax rate was 34…

A: A company’s tax due is calculated on the basis of the average tax rate and not the marginal tax…

Q: Use the Corporate Income Tax information above to answer this question. A corporation has a taxable…

A: Income Tax- The federal, state, and municipal governments levy taxes on the gross income of people,…

Q: The Pearson corporation reported an EBITDA of $7.5 million, net income of $1.8 million, $2 million…

A: Computation:

Q: Jurisdiction B levies a flat 7 percent tax on the first $5 million of annual corporate income.…

A: SOLUTION- MARGINAL TAX RATE IS THE TAX RATE YOU PAY ON ADDITIONAL DOLLAR OF INCOME.

Q: Magnus Corporation has $120,000 of revenues for the year. They also have the following expenses…

A: Corporate taxable income=Gross Income-Allowable Deductions

Q: Income Tax on Special Corporations Read and analyze the following scenarios and apply the…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Berry Co/ provides an incentive compensation plan under which its president receives a bonus equal…

A: The bonus amount is 20% of after tax and bonus amount. The following formula would be applied to get…

Q: The Income Statement of the ABC Corporation in Puerto Rico, prepared on a tax basis, presents the…

A: Taxable income is the amount of income computed to measure the amount of taxes to be paid to the…

Q: Given this tax table, what is the average tax rate for a firm with taxable income of $160,000?…

A: Under Tax slab system, the taxable value is divided into several different level and for each level…

Q: Grateful Enterprises had the following income before tax provision and effective annual tax rate for…

A: The tax rate for : Quarter 1 = 30% Quarter 2 = 30% Quarter 3 = 25% Cumulative Income ( Quarter ) =…

Q: Corporate Taxes: An Example To illustrate certain portions of the tax laws for a corporation, assume…

A: Income statement of an entity shows its profitability position.

Q: V Co. has an agreement to pay its sales manager a bonus of 7.5% of the company's earnings due to an…

A: Working note: Let the amount of bonus be denoted by x. The income after tax will be: Particular…

Q: Using the Corporated Federal Income Tax Rate (2006), calculate the federal income tax that should be…

A: The following federal income tax rate (2006) table will be used:

Q: A company generates $500,000 of gross income during its tax year and incurs operating expenses of…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: If a company earns $48,000 income on a municipal bond and the tax rate is 20%, Income tax expense…

A: Taxes are the compulsory payment that should be made by the taxpayer.

Q: Josh Company, a calendar-year corporation has the following income before income tax provison and…

A: Income Tax- Income tax is best defined as the amount of tax levied by the government on the earnings…

Q: hornton, Inc., had taxable income of $129632 for the year. The company's marginal tax rate was 34…

A: A tax is a mandatory fee or financial charge levied by any government on an individual or an…

Q: 1. If a corporation’s tax return shows taxable income of $98,300 for Year 2 and a tax rate of 40%,…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: Frey Corporation's income statement for the year ended December 31, 2002, shows pretax income of…

A: Timing difference: Rent income = ₱120,000 - ₱70,000 = ₱50,000 Depreciation expense = 280000 -…

Q: XYZcorporation reported the following gross income and expenses: Gross income in the Philippines is…

A: SOLUTION- A DOMESTIC CORPORATION IS TAXED @ 25%FROM JULY 1 2020 . PREVIOUS RATE WAS 30% . A…

Q: A mixed income earner realized P920,000 from compensation, P2,000,000 in sales, P100,000 other…

A: Income tax is levied by the central and state government on the income earned by the firm in the…

Q: In the current year, Vorschusse Corporation (a calendar year C corporation) had operating income of…

A: Introduction C Corporation and its tax rates: C Corporation, under United States federal income tax…

Q: Suppose that you are an individual taxpayer who is self-employed. For the year, you projected a 10%…

A: Taxable Income-:Taxable earnings are the fraction of an individual's or corporation's income…

Q: A domestic corporation started its operations in year 2008. The following data on income taxes…

A: Solution working note- Particulars 2018 2019 MCIT 40000 60000 RCIT 5000 85000 RCIT OR MCIT…

Q: A domestic corporation had the following cumulative data in a year: 1st Qtr 2nd Qtr 3rd Qtr…

A: An itemised deduction seems to be a cost that may be subtracted from your adjusted gross income…

Q: What amount should Alex report as income tax expense in its interim income statement for the first…

A: The calculation of income tax expense that is to be reported in the interim income statement for the…

Q: An exempt organization, reports unrelated business income of $290,000 and unrelated business…

A: Working notes: Given data Unrelated business income = $290,000 Unrelated business expense =…

Q: Pecorino Company had pretax financial income of P2,500,000 in the current year. The entity made…

A: Solution: Taxable income for the year= Pretax financial income - Tax depreciation in excess of…

Q: Read and analyze the following scenarios and apply the principles and concept of income taxation on…

A: Income tax payable is a form of account in a company's balance sheet's current liabilities portion.…

Q: In 2021, Eric Corporation reported P90,000 net income before income taxes. The income tax rate for…

A: Solution: Current Tax = (90000-60000) * 30% = 30000*30% = 9000 DTA reversed = 60000*35% = 21000

Q: A domestic corporation in its 8th year of operations as of January MSME under CREATE law, has the…

A: In the context of the given question, we are required to income tax payable for the year 2021 and…

Q: a calendar-year C Corporation, is considering investing in a business expenditure with a cost of…

A: Tax Credit: Tax credits are an instrument to reallocate pay to individuals on lower compensation. A…

Q: Jurisdiction B levies a flat 7 percent tax on the first $5 million of annual corporate income.…

A: Given : 7% tax on the first $ 5 million

Q: Pecorino Company had pretax financial income of P2,500,000 in the current year. The entity made…

A: Solution: Amount of total tax expense = (Pretax financial income - Interest income) * tax rate

Q: he Generous Corporation’s president has a profit sharing agreement with the company. The agreement…

A: solution : bonus amount = 10% of the company’s net income before deduction of bonus…

Q: In year k, the before-tax cash flow of a corporation is $513,422. During year k, the expense is…

A: ATCF (After tax cash flow): = before tax cash flow - expenses - depreciation - taxes

Q: Grateful Enterprises had the following income before tax provision and effective annual tax rate for…

A: Interim financial statements are those financial statements which are prepared in between two…

Q: Green Grow Energies, Inc. reported a taxable income of $87,588,200 last year. What was their net…

A: Corporate income tax rate is 21% for year 2021.

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Introduction

VIEW

Answer & Explanation

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Estimate the gross income for Bling Enterprises, which reports a CFAT of $2.5 million, $900,000 in expenses, $900,000 in depreciation charges, and has an effective tax rate of 26.4%.
The annual revenue, expenses, and depreciation for a company are $130,000; 32,000; and $12,000, respectively. What is the after-tax cashflow if the effective income tax rate is 23%? O a. $75,460 O b. $66,220 O c. $63,460 O d. $78,220 O e. $19,780
In Geri Co, the 5 year weighted average historical pre-tax economic earnings are $1,250,000. The tax rate is 28%. The hurdle and debt rate are 12.25%. The adjusted net assets from prior year-end is $2,050,000. The cap rate applicable to this kind of company is 25% pretax. Determine the value of this business using reasonable rate return on assets. a. $3,995,500 b. $2,050,000 c. $6,045,500 d. Cannot be determined from the information provided.
C Company had the following data for the last year (dollars in thousands): Net income = $700; EBIT = $1,200; Total assets = $3,500; and Total operating capital = $2,100. Information for the current year is as follows: Net income = $800; EBIT = $1,555; Total assets = $3,800; and Total operating capital = $2,500. The company's federal and state tax rate is 35%. How much free cash flow did the firm generate during the current year? Round your answer to the nearest dollar. (Hint: FCF = NOPAT - Net Investment in Operating Capital) Group of answer choices: $605 $617 $611 $608 $614
Compute the income after income tax given the following: Net Sales of 100,00,00.00; Marketing Expense of 5,000,000.00; Tax Rate of 30%. Based on the latest income statement, revenue is 500,000,000.00; COGS is 400,000,000.00 and operating expense amounted to 40,000,000.00. Income after income tax is _____.
3. (a) Debt is 20% of assets for an organization. Total assets are$10,000. The tax rate is 40%. The interest rate is 10%. EBIT profit is$1000. What is the after taxes and interest profit? What is the ROE?Profit_______________ROE________________(b) If in 1(a) debt is increased to 50% of assets, what will be the aftertaxes and interest profit and the ROE?Profit__________________ROE___________________
A company has pre-tax or operating income of $120,000. If the tax rate is 40%, what is the companys after-tax income? A. $300,000 B. $240,000 C. $48,000 D. $72,000
Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of goods sold was 240,000, its operating expenses were 50,000, its interest revenue was 2,000, and its interest expense was 12,000. Brandts income tax rate is 30%. Prepare Brandts multiple-step income statement for the current year.
Trade receivables have a carrying amount of P4,000. The related revenue has already been included in taxable profit (tax loss). How much is the tax base of the asset? The tax rate is 40%.
Moose Industries has a corporate tax rate of 25%. Last year the c company realized $14,000,000 in operating income (EBIT). Its annual interest expense is $1,500,000. What was the company's net income for the year? O a. $9,375,000 O b. $10,500,000 Oc. $3,125,000 O d. $11,625,000 O e. $12,500,000
ACCT Co. had a 20 percent tax rate. Given the following pre-tax amounts, what would be the income tax expense reported on the face of the income statement? A. $54,000 B. $34,000 C. $36,000 D. $16,000 Sales revenue $ 1,000,000 Cost of goods sold 600,000 Selling expense 100,000 Administrative expense 10,000 Interest expense 20,000 Discontinued operations loss 100,000 Answer:
The following year-end data pertain to Adan Corporation: Earnings before interest and taxes 800,000 Current assets 800,000 Non-Current assets 3,200,000 Current Liabilities 400,000 Non-current liabilities 1,000,000 Adan corporation pays an income tax rate of 30%. Its weighted average cost of capital is 10%. What is Adan corporations Economic value added (EVA)?