needed help please provide help with this question Hurd Company acquired a building valued at $154,000 forproperty tax purposes in exchange for 10,000 shares of its $4 parcommon stock. The stock is widely traded and sells for $19 pershare. At what amount should the building be recorded by HurdCompany?a. $40,000b. $150,000c. $190,000d. $154,000

Step 1: Definition of Plant Assets:Plant assets are acquired by a business entity in order to obtain…

Answered: Hurd Company acquired a building valued…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 1BCRQ

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CTT Limited has an asset which cost $300 with related accumulated depreciation of $100. The accumulated depreciation for tax purposes is $180 and the company tax rate is 30%. The tax base of this asset is: Question 3Answer a. $120 b. $20 c. $80 d. $220
The tax return of Okinawa Company indicates taxable profit of P15,000,000 on which a tax liability of P5,250,000 has been recognized. Following is a list of items that may be required to determine accounting profit from the amount of taxable profit: Accelerated depreciation for income tax purposes was P2,000,000 and straight-line financial depreciation is P1,500,000 Insurance premium of P100,000 on the life of an officer with Okinawa as beneficiary was not included as a deduction in the tax return Interest on treasury bills was not included in the tax return. During the year, Okinawa received P2,500,000 on these investments. What was Okinawa’s accounting profit?
This year, Sigma Inc. generated $662,250 income from its routine business operations. In addition, the corporation sold the following assets, all of which were held for more than 12 months: Initial Sale Price O$ 75,000 41,750 Acc. Basis Depr.* $ 149,600 $ 103,600 Marketable securities Production equipment Business realty: Land Building 82,880 237,000 270,000 247,250 210,500 81,000 *Through date of sale. Required: a. Compute Sigma's taxable income assuming that it used the straight-line method to calculate depreciation on the building and has no nonrecaptured Section 1231 losses. b. Recompute taxable income assuming that Sigma sold the securities for $159,200 rather than $75,000.
Kk.317.
The Stone Inn earned $167,284 in taxable income for the year. How much tax does the company owe on this income? TxableIncome 60.000 Tox Rale 18% 50.001- 75.000 75.001-100.000 100.001- 35.000 335.001- 10,000,000 a. $46,311.02 b. $48,490.76 c. $54,519.27 d. $65,240.76
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10. STU Company provided the following information for the current year: Purchased a building for P1,200,000. Signed a mortgage with the seller for P800,000 and paid cash for the remainder. Sold a land with cost of P1,500,000 at a loss of P275,000. Purchased a patent for P1,000,000. Issued ordinary shares worth P650,000 and paid cash for the balance. Borrowed P550,000 under a long-term loan agreement. Used the cash from the loan proceeds as follows: P150,000 for purchase of additional inventory, P300,000 to pay cash dividend, and P100,000 to increase the cash balance. What amount should be reported as net cash provided by/used from investing activities in the statement of cash flows? (Indicate if provided or used)
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On December 30, 2021, CHERRY Company paid P2,000,000 for the land. On December 31, 2021, the current value of the land was P2,200,000. In January 2022, the land was sold for P2,250,000. Ignoring income tax, by what amount should shareholders’ equity be increased for 2021 and 2022 in current value financial statements? A. 2021 - ₱ 0; 2022 - ₱ 50,000 B. 2021 - ₱ 200,000; 2022 - ₱ 0 C. 2021 - ₱ 0; 2022 - ₱ 250,000 D. 2021 - ₱ 200,000; 2022 - ₱ 50,000
Rochester inc had pretax accounting income of 2,700,000 and a tax rate of 20% in 2025 during its first year of operation. Following transactions Received advance rent from pack co for 2026: $96000 Received municipal bond interest $120000 Claimed depreciation for tax purposes in excess of book depreciation $60000 Reported installment sales rev on financial statements in 2025; not recognized for tax purposes until received in 2026: $162000 How much is current tax expense for 2025?
JAM Company recorded in its books taxes and licenses expenses amounting to P51,055,000. The breakdown of the taxes and licenses account is as follows:Payment of deficiency FBT, P25,000,000CGT on sale of real properties, P200,000CGT on sale of shares of stock, P50,000Other percentage tax on sale of shares of stock, P5,000Payment of surcharge, P6,250,000Payment of interest on deficiency FBT, P1,250,000Payment of compromise penalties, P300,000Business taxes and licenses, P18,000,000How much of the above payments are deductible from gross income?
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