Company XYZ manufactures a tangible product and sells the product at wholesale. In its first year of operations, XYZ manufactured 1,900 units of product and incurred $351,500 direct material cost and $194,750 direct labor costs. For financial statement purposes, XYZ capitalized $149,750 indirect costs to inventory. For tax purposes, it had to capitalize $180,750 indirect costs to inventory under the UNICAP rules. At the end of its first year, XYZ held 190 units in inventory. In its second ye of operations, XYZ manufactured 3,800 units of product and incurred $722,000 direct material cost and $418,000 direct labo costs. For financial statement purposes, XYZ capitalized $282,000 indirect costs to inventory. For tax purposes, it had to capitalize $336,000 indirect costs to inventory under the UNICAP rules. At the end of its second year, XYZ held 380 items in inventory. Required: a. Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the FIFO costing convention. b. Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the LIFO costing convention. Complete this question by entering your answers in the tabs below. Required A Required B Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the FIFO costing convention. (Do not round intermediate calculations.) Cost of beginning inventory Total cost of units produced Cost of units available for sale Cost of ending inventory Cost of goods sold $ $ Book 0 $ 0 $ Tax 0 0

Truson Company paid a 4% SUTA tax on the taxable wages of $108500. The taxable wages under FUTA were $89400. What was the net FUTA tax of Truson Company? Round to the nearest cent

(Two Differences, One Rate, Beginning Deferred Balance, Compute Pretax Financial Income) Andy McDowell Co. establishes a $100 million liability at the end of 2017 for the estimated site-cleanup costs at two of its manufacturing facilities. All related closing costs will be paid and deducted on the tax return in 2018. Also, at the end of 2017, the company has $50 million of temporary differences due to excess depreciation for tax purposes, $7 million of which will reverse in 2018. The enacted tax rate for all years is 40%, and the company pays taxes of $64 million on $160 million of taxable income in 2017. McDowell expects to have taxable income in 2018.Instructions(a) Determine the deferred taxes to be reported at the end of 2017.(b) Indicate how the deferred taxes computed in (a) are to be reported on the balance sheet.(c) Assuming that the only deferred tax account at the beginning of 2017 was a deferred tax liability of $10,000,000, draft the income tax expense portion of the income…

Black Company, organized on January 2, 20X1, had pre-tax accounting income of $500,000 and taxable income of $800,000 for the year ended December 31, 20X1. The only temporary difference is accrued product warranty costs, which are expected to be paid as follows: 20X2 20X3 20X4 20X5 $100,000 50,000 50,000 100,000 Circumstances indicate that it is highly likely that Black will have taxable income in the future. It had no temporary differences in prior years. The enacted income tax rate is 21%. Required: 1. In Black's December 31, 20X1, balance sheet, how much should the deferred tax asset be? 2. Suppose that as of December 31, 20X1, a newly enacted law called for the tax rate to change to 25%, effective January 1, 20X3. Then what would be the amount of the deferred tax asset at December 31, 20X1?

TyroneCo, an S corporation with a positive E & P balance, reports gross receipts for the year totaling $533,000 (of which $266,500 is passive investment income). Expenditures directly connected to the production of the passive investment income total $106,600.   Compute Tyrone's passive investment income tax. If required, round your final answer to the nearest dollar.

Lewes Company appropriately uses the installment sales method for tax purposes and the accrual method for revenue recognition for accounting purposes. Pertinent data at December 31, 2016, the close of the first year of operations, are as follows:   Revenue Recognized Revenue Recognized Customer for Accounting Purposes for Tax Purposes Lowe's Builders $200,000 $100,000 Top Down Plumbing 500,000 350,000 Glass Plus Windows 600,000 350,000 Lewes's tax rate is 30%. What amount should be included in the deferred tax account at December 31, 2016 for these installment sales?

ANNA Company purchased inventories from abroad for resale incurring the following costs: Determine the cost to be capitalized as part of inventory.    2. ROSALINDA Company accepted a special manufacturing order from RIZZA Company. The Company incurred P250,000 for materials and P170,000 for conversion costs. Since this is a special order, the Company also incurred P100,000 for designing the product and P50,000 for modifying the current production process. In addition, excessive wastage of materials amounting to P80,000 was incurred because of the highly-specialized nature of the order. Lastly, the Company also incurred storage cost of P70,000 when the inventory was in work-in-process stage and P40,000 when it was already a finished product. What amount should be capitalized as part of inventory?

At the beginning of 2016, Norris Company had a deferred tax liability of $6,600, because of the use of MACRS depreciation for income tax purposes and units-of-production depreciation for financial reporting. The income tax rate is 30% for 2015 and 2016, but in 2015 Congress enacted a 39% tax rate for 2017 and future years. Norris’s accounting records show the following pretax items of financial income for 2016: income from continuing operations, $120,300 (revenues of $351,500 and expenses of $231,200); gain on disposal of Division F, $24,000; loss from operations of discontinued Division F, $11,500; and prior period adjustment, $14,100, due to an error that understated revenue in 2015. All of these items are taxable; however, financial depreciation for 2016 on assets related to continuing operations exceeds tax depreciation by $4,600. Norris had a retained earnings balance of $161,300 on January 1, 2016, and declared and paid cash dividends of $32,800 during 2016. Required: 1.…

BEE company report TOTAL net income of $902 milllion before tax. During the year, BEE committed to dispose of its retail repair shops. The retail repair shops are a component of its business and the disposal represents a strategic shift in the company's operations.  The retail repair shops reported $55 million in pretax profit for the year. The carrying value of the retail repair shops is $198 million with a fair (net realizable) value of $110 million. BEE is subject to a 25% income tax rate.   Prepare a partial income statement begining with income from continuing operations.

On June 30, Pronghorn Corp discontinued its operations in Mexico. During the year, the operating income was $270,000 before taxes. On September 1, Pronghorn disposed of the Mexico facility at a pretax loss of $670,000. The applicable tax rate is 30%. Show the discontinued operations section of Pronghorn’s income statement. PRONGHORN CORPPartial Income Statement select an opening section name                                                                enter an income statement item                                                              $enter a dollar amount enter an income statement item                                                              $enter a dollar amount     $enter a total dollar amount