8. Gilbreath Corporation is a C Corporation and has the following items of income and expense during the current year. Gross Income 100,000.00 Interest Income $ 5,000.00 COGS -70,000.00 Interest Expense $ -15,000.00 Depreciation -10,000.00 What is taxable income before limitation? What is the net businesss intrest expense? What is adjusted taxable income for purposes of the net business income limitation? How much of the net busienss interest expenses may Gilbreath deduct during the current year?
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- Recording NOL Carryforward and Carryback|Carryforward Toner Corporation computed the following: Year 1 taxable income, $10,000; Year 2 taxable loss, $( 40,000). At the end of Year 2, Toner made the following estimates: Year 3 taxable income, $4,000; Year 4 taxable income, $11,000; and Year 5 taxable income, $50,000. On the basis of these estimates, Toner believes the full amount of the tax loss carryforward benefit is more likely than not to be realized. There are no other temporary differences. Tax rates are 25% for Year 1, Year 2, and Year 3; and 30% for Year 4 and Year 5. Net operating loss carryforwards can only offset a maximum of 80% of taxable income in each of the future years. Required Do not give solution in image format8. An entity reported pretax financial income of P8,000,000 for the current year. The taxable income was P7,000,000 for the current year. The difference is due to accelerated depreciation for income tax purpose. The income tax rate is 30% and the entity made estimated tax payment of P500,000 during the current year. What amount should be reported as income tax payable at year-end? 1,600,000 2,100,000 2,400,000 1,900,000*see attached What amount of permanent difference between accounting income and taxable income existed at year-end?a. P 520,000b. P 360,000c. P 800,000d. P 280,000
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