Alamo Inc. had $270 million in taxable income for the current year. Alamo also had a decrease in deferred tax assets of $31 million and an increase in deferred tax liabilities of $56 million. The company is subject to a tax rate of 25%. The total income tax expense for the year was:
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Alamo Inc. had $270 million in taxable income for the current year. Alamo also had a decrease in
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- Thornton, Inc., had taxable income of $130,022 for the year. The company's marginal tax rate was 34 percent and its average tax rate was 23.5 percent. How much did the company have to pay in taxes for the year?The Foyer Company had an enacted income tax rate of 25%. The company ended Year 1 with a deferred income tax liability of $30,000, a deferred income tax asset of $40,000, and a valuation allowance of $9,000. The enacted tax rate at the beginning of Year 2 was raised to 28%. The company ended Year 2 with a deferred income tax liability of $60,000, a deferred income tax asset of $30,000, and a valuation allowance of $14,000. On the company's Year 2 income statement, what is the amount of income tax expense (deferred) that is reported?Diamond, Inc. had the following Income Statement at the end of the year. Compute Diamond's federal income tax expense given the tax rate of 21%. What is the company's net income?
- During its first year of operations, Alcoa Corporation reported a net operating loss of $800,000 for financial reporting and tax purposes. The enacted tax rate is 25%. Which of the following is true? a. Deferred tax assets are increased by $800,000 b. Deferred tax liabilities are increased by $800,000 c. Net income is -$600,000 d. Income tax expense is debited by $200,000 e. Net income is -$800,000Goose Industries faces the following tax schedule. Last year the company realized $15,000,000 in operating income (EBIT). Its annual interest expense is $7,500,000. (1) Compute the company’s income taxes payable? Use the tax rate table below. (2) What was the company’s net income for the year? If a corporation's taxable income is It pays this amount on the base of the bracket Plus this percentage on the excess over the base (marginal rate) Average tax rate at top of bracket Up to $50,000 $0 15% 15.0% $50,000 – $75,000 $7,500 25% 18.3% $75,000 – $100,000 $13,750 34% 22.3% $100,000 – $335,000 $22,250 39% 34.0% $335,000 – $10,000,000 $113,900 34% 34.0% $10,000,000 – $15,000,000 $3,400,000 35% 34.3% $15,000,000 – $18,333,333 $5,150,000 38% 35.0% Over $18,333,333 $6,416,667 35% 35.0% (1) $2,436,000 (2) $4,950,000 (1) $2,550,000 (2) $4,950,000 (1) $2,550,000 (2)…During its first year of operations, Nile.com reported a net operating loss of $15 million for financial reporting and tax purposes. The enacted tax rate is 40%. Prepare the journal entry to recognize the income tax benefit of the net operating loss.
- Western Digital reported $950 million in income before income taxes for 2021, its first year of operations. Tax depreciation exceeded depreciation for financial reporting purposes by $110 million. The company also had non-tax-deductible expenses of $84 million relating to permanent differences. The income tax rate for 2021 was 25%, but the enacted rate for years after 2021 is 30%. The balance in the deferred tax liability in the December 31, 2021, balance sheet is: Multiple Choice $18 million. $59 million. $33 million. $28 million.For the first year of operations, Fidelity Engineering reported pretax accounting income of $120,000. Interest revenue from municipal bonds is $20,000. Depreciation expense reported for tax purposes was in excess of depreciation expenses reported on the income statement of $40,000. Tax rate is 25%. How much is the taxable income? How much is Income Tax Payable? How much is income tax expense? Any DTA or DTL? If so, how much?Westwind Corporation reports the following results for the current year: Gross profit on sales $250,000 Long-term capital gain 25,000 Long-term capital loss 10,000 Short-term capital gain 7,500 Short-term capital loss 12,500 Operating expenses 80,000 What are Westwind's taxable income and regular tax liability before credits for the current year?
- EFG & Co. started its business at the beginning of the current year. By end of first year operations, EFG reported P6,000,000 financial income before income tax and P5,100,000 taxable income. Breakdown of the P900,000 difference revealed that P500,000 is a permanent difference and P400,000 is a future taxable amount. Enacted tax rate is 30%. How much is the total income tax expense? a. 1,800,000 b. 1,950,000 c. 1,530,00 d. 1,650,000For the year ended December 31, year 1, Tyre Co. reported pretax financial statement income of $7,500,000. Its taxable income was $6,500,000. The difference is due to accelerated depreciation for income tax purposes. Tyre's effective income tax rate is 30%, and Tyre made estimated tax payments during year 1 of $900,000. 1. What amount should be reported as current tax expense for the current year? a. 2,250,000 b. 1,950,000 c. 1,050,000 d. 1,350,000 2. What amount should be reported as total income tax expense? a. 1,350,000 b. 1,950,000 c. 1,050,000 d. 2,250,000 3. What amount of income tax payable should be presented at year end? a. 2,250,000 b. 1,350,000 c. 1,950,000 d. 1,050,000Grand Corporation reported pre-tax book income of $600,000. Tax depreciation exceeded book depreciation by $400,000. In addition, the company received $300,000 of tax-exempt municipal bond interest. The company’s prior year tax return showed taxable income of $40,000. Assuming a tax rate of 21%, compute the company’s current income tax expense or benefit. (Enter the answer as a positive.) Please explain step by step because I'm not getting the correct answer.