WFO Corporation has gross receipts according to the following schedule: Year 1 $ 25.00 million Year 2 $ 27.00 million Year 3 $ 29.00 million Year 4 $ 29.50 million Year 5 $ 30.00 million Year 6 $ 31.00 million If WFO began business as a cash-method corporation in Year 1, in which year would it have first been required to use the accrual method?
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WFO Corporation has gross receipts according to the following schedule:
Year 1 | $ 25.00 million |
---|---|
Year 2 | $ 27.00 million |
Year 3 | $ 29.00 million |
Year 4 | $ 29.50 million |
Year 5 | $ 30.00 million |
Year 6 | $ 31.00 million |
If WFO began business as a cash-method corporation in Year 1, in which year would it have first been required to use the accrual method?
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- WFO Corporation has gross receipts according to the following schedule: Year 1 $22.50 million Year 2 $23.55 million Year 3 $25.25 million Year 4 $25.50 million Year 5 $26.50 million Year 6 $28.50 million If WFO began business as a cash-method corporation in Year 1, in which year would it have first been required to use the accrual method? Multiple Choice ___ Year 3. ___ Year 4. ___ Year 5. ___ Year 6. ___ None of the choices are correct.WFO Corporation has gross receipts according to the following schedule: $ 25.00 million $ 27.00 million million $29.00 $ 29.50 million $ 30.00 million $31.00 million If WFO began business as a cash-method corporation in Year 1, in which year would it have first been required to use the accrual method? Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Multiple Choice O O Year 3 Year 4 Year 5 Year 6 None of the choices is correct.A Corporation is engaged in the trading business. The reported income and expenses for taxable year 2019 show: Sales P10,000,000 cost of sales 6,000,000 general business expenses 1,000,000 Interest on time deposit (gross) 100,000 Interest expense on loans payable 180,000 The net taxable income is A. 2,820,000 B. 2,853,000 C. 2,862,000 D. 2,858,000
- During the current year, Thrasher (a calendar year, accrual basis S corporation) records the following transactions. a. Determine Thrasher Corporations separately stated items for the current year. b. Determine Thrashers ordinary business income for the current year.Transactions Affecting E&P. For each of the following transactions, indicate whether a special adjustment must be made in computing R Corporation's current E&P. Answer assuming that E&P has already been adjusted for current taxable income. a. During the year, the corporation paid estimated Federal income taxes of $25,000 and estimated state income taxes of $10,000. b. The corporation received $5,000 of interest income from its investment in tax-exempt bonds. c. The corporation received a $10,000 dividend from General Motors Corporation. d. The corporation purchased machinery for $9,000 and expensed the entire amount in accordance with Code § 179. e. The corporation reported a § 1245 gain of $20,000. f. The corporation had a capital loss carryover of $7,000 from the previous year. This year the corporation had capital gains before consideration of the loss of $10,000.73. Black Company which began operations on January 1, 2018, has elected to use cash basis accounting for tax purposes and accrual basis accounting for the financial statements. The entity reported sales of P1,750,000 and P800,000 in the tax returns for the years ended December 31, 2019 and 2018,respectively. The entity reported accounts receivable of P300,000 and P500,000 in the statement of financial position on December 31, 2019 ad 2018. respectively. What amount should be reported as aisles in the income statement for the year ended December 31, 2019? a. 1,450,000 b. 1,550,000 c. 1,950,000 d. 2,050,000
- 46. Black Company which began operations on January 1, 2018, has elected to use cash basis accounting for tax purposes and accrual basis accounting for the financial statements. The entity reported sales of P1,750,000 and P800,000 in the tax returns for the years ended December 31, 2019 and 2018,respectively. The entity reported accounts receivable of P300,000 and P500,000 in the statement of financial position on December 31, 2019 ad 2018. respectively. What amount should be reported as aisles in the income statement for the year ended December 31, 2019? а. 1,450,000 b. 1,550,000 c. 1,950,000 d. 2,050,000Howard Company, which began operations on January 1, 2020, has elected to use the cash basis accounting for tax purposes and accrual basis for the financial statements. The entity reported sales of P3,500,000 and P1,600,000 in the tax returns for the years ended December 31, 2021 and 2020 respectively. The entity reported accounts receivable of P300,000 and P500,000 on December 31, 2021 and 2020, respectively. What amount should be reported as sales in the Income Statement for 2021?A. 4,100,000B. 3,700,000C. 3,100,000D. 4,700,000The entity made corporate estimated tax payment in the To compute the provision for income tax, the following Tax depreciation in excess of financial statement amount 160,000 Pecorino Company had pretax financial income of P2,500,000 3. What amount of income tax payable should be reported? 4. What amount of total tax expense should be reported? Problem 16-30 (IFRS) in the current year. amount of 180,000 during the current year. information was provided: 360,000 Interest income received Tax depreciation in excess of financial statement amount Rent received in advance Corporate tax rate 280,000 30% 1. What amount of permanent difference between book income and taxable income existed at year-end? a. 520,000 b. 360,000 c. 800,000 d. 280,000 2. What amount of current tax expense should be reported? a. 786,000 b. 510,000 c. 750,000 d. 678,000 000,00 a: 498,000 b. 606,000 c. 330,000 d. 570,000 4. What amount of total tax expense should be repor0 a. 714,000 b. 726,000 c. 642,000 d. 594,000 570
- As a general rule, C corporations must use the cash method of accounting. However, under several exceptions to this rule (e.g. average annual gross receipts of $25 million or less for the most recent 3-year period), a C corporation can use the accrual method. Question 12 options: True FalseUmasa Corporation reported the following information for the current year: Pretax financial income Income from exempt municipal bonds Rent received in advance P 9,000,000.00 2,000,000.00 1,500,000.00 Depreciation deduction for income tax purposes in excess of depreciation reported for financial reporting purposes Estimated tax payment for current year Income tax rate 1,000,000.00 500,000.00 30% 21. What amount of current tax liability should be reported at the year-end? B. P2,250,000 A. P1,750,000 C. P2,750,000 D. P2,850,000 22. What is the total tax expense? A. P2,700,000 B. P2,100,000 C. P2,250,000 D. P1,600,000For each of the following transactions, indicate wheth-er a special adjustment must be made in computing R Corporation's current E&P. Answer assuming that E&P has already been adjusted for current taxable income. a. During the year, the corporation paid estimated Federal income taxes of $25,000 and estimated state income taxes of $10,000. 5. The corporation received $5,000 of interest income from its investment in tax-exempt bonds. c. The corporation received a $10,000 dividend from General Motors Corporation. d. The corporation purchased machinery for $9,000 and expensed the entire amount in accordance with Code § 179. e. The corporation reported a § 1245 gain of $20,000. f. The corporation had a capital loss carryover of $7,000 from the previous year. This year the corporation had capital gains before consideration of the loss of $10,000