FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Four Square Services Corporation estimates that its 2021 taxable income will be $1,000,000. Thus, it incurs a $210,000 liability. For the following independent cases, compute Four Square's minimum quarterly estimated tax payments that will avoid an underpayment penalty. a. For 2020, taxable income was $800,000, and tax liability was $168,000. b. For 2019, taxable income was $2 million, and tax liability was $680,000. For 2020, taxable income was $100,000, and tax liability was $21,000.arrow_forwardGive me correct answer with explanation..jarrow_forwardNow assume that Syer does account for its NOL under the CARES Act. Prepare the appropriate journal entry to record Syer’s 2020 income taxes, and indicate Syer’s 2020 net income(loss). Syer Company reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ in millions): 2016 2017 2018 2019 2020 $ 330) $ 130 $ 0 $0 $ (660) Syer’s 2020 NOL is driven by an unfortunate obsolescence of its primary product. Given great uncertainty in Syer’s future profitability, Syer’s management does not believe it is more likely than not that it will be able to realize deferred tax assets in future years. Syer’s federal tax rate decreased from 35% to 21% starting in 2018.arrow_forward
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