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- The following are details to calculate tax expense, tax payable and deferred taxes: Descriptions Gross Income: 2018:RM500,00.00; 2019: RM600,000.00; 2020: RM750,000.00; 2021: RM700,000.00 Heavy machinery with cost of RM300, 000.00 is depreciated annually for 10% using straight line method. Under tax rules, initial allowance is 20% and annual allowance is 2 20%. Rent revenue for rental of office space is RM3,000.00 per month (RM36,000.00 per annum) and shop outlet is RM5,000.00 per month (RM60,000.00 per annum). Office space rental received 2 years in advance for 2018. Meanwhile, shop outlet rental is accrued with balance brought forward RM10,000.00 in 2018; received 3 months advance in 2019 and 4 months accrued 2021. Recognized provision of warranty RM8,000.00 in 2018; RM10,000.00 in 2019; RM10,000.00 in 2020 and RM 15,000.00 in 2021. Warranty expenses claims were RM6000.00 for 2018; RM10,000.00 for 2019; RM12,000.00 for 2020 and RM11,000.00 for 2021. Tax rate is 25% 3 REQUIRED: a.…Molteni Motors Inc. recently reported $6 million of net income. Its EBIT was$13 million, and its tax rate was 40%. What was its interest expense? (Hint:Write out the headings for an income statement and then fill in the knownvalues. Then divide $6 million net income by 1 - T = 0.6 to find the pretax income. The difference between EBIT and taxable income must be theinterest expense. Use this procedure to work some of the other problems.)A customer purchases $28.14 in products only $12.83 is taxable. How much sales tax is owed if the tax rate is 10%.
- If the tax 2000 OMR, depreciation is 3000 OMR, amortization 1000 OMR, EBITDA to interest coverage is 15 times, interest is 5000 OMR. The Net income after tax is ... Answer:Webster world has sales of $13,800, costs of $5800, depreciation expense of $1100, and interest expense of $700. What is the OCF if the tax rate is 23 percent?Current liabilities include accrued fines and penalties with a carrying amount of 4,000. Fines and penalties are not deducted for tax purposes. How much is the tax base of the liability? The tax rate is 40%
- Little Books, Inc. recently reported $3 million of net income. Its EBIT was $6 million, and its tax rate was 40%. What was its interest expense? (Hint: write out the headings for an income statement and then fill in the known values. Then divide $3 million net income by (1-T) to find pre-tax income. The difference between EBIT and taxable income must be the interest expense. Use this same procedure to work some of the other problems.)Asset impairment charge is non-cash charge that is deductible for taxes. It is considered one-time in nature. · Income tax rate 25% (this is the same rate for income from all locations in this analysis). Create Income statement to determine if worthy of a purchase?Bryon Brooks Inc. recently reported 15 million of net income. Its EBIT was 20.8 million, and its tax rate was 25%. What was its intrest expense?(Hint: Write out the headings for an income statement, and fill in the known values. Then divide 15 million of net income by (1-T)= 0.75 to find the pretax income. The difference between EBIT and taxable income must be intrest expense.
- Bad and doubtful debts for Manja Enterprise is RM10,000. The amount consists of the general provision of trade debt of RM7.000 and a loan to a customer which is written off of RM3.000. How much amount is allowed in tax computation?Consider the following data extracted from an after-tax cash flow calculation. Before-Tax-and-Loan = $22,500 Loan Principal Payment = $5,926 Loan Interest Payment = $2,400 MACRS Depreciation Deduction = $16,665 Which of the following is closest to the Taxable Income? a. −$2,491. b. −$91. c. $3,435. d. $14,174FGH Corporation had the following in 2021: Sales P 3.4M; Cost of sales P 1.2M; Admin expense P 0.3M; Selling expenses P .5M; other taxable income from operations P .1M. What is deductible expense if the company uses OSD?* a. 920,000 b. 1,360,000 c. 880,000 d. 800,000 Using the problem above, what is the income tax payable?* a. 330,000 b. 375,000 c. 575,000 d. 525,000