Prepare a corrected partial income statement and a statement of comprehensive income
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An inexperienced accountant for Crane Transport Corporation showed the following in Crane Transport's 2021 income statement: income before income taxes of $446,000; and unrealized loss on available-for-sale debt securities (before taxes) of $73,000. The unrealized loss and the income before income taxes are both subject to a 20% tax rate. Prepare a corrected partial income statement and a statement of comprehensive income CRANETRANSPORT CORPORATION Partial Income Statement and Statement of Comprehensive Income $
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- An inexperienced accountant for Crane Corporation showed the following in the income statement: net income $193,500 and unrealized gain on available-for-sale securities (before taxes) $94,900. The unrealized gain on available-for-sale securities is subject to a 25% tax rate Prepare a correct statement of comprehensive income. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) CRANE CORPORATION Statement of Comprehensive Income > +A $An inexperienced accountant for Crane Corporation showed the following in the income statement: net income $ 187,500 and unrealized gain on available-for-sale securitles (before taxes) $85,000. The unrealized gain on available-for-sale securities is subject to a 25% tax rate Prepare a correct statement of comprehensive income. (Enter loss using elther a negative sign preceding the number eg-2,945 or parentheses eg, (2,945)) CRANE CORPORATION Statement of Comprehensive Income Income before income taxes Income tax expense Net incomedos Unrealized holdine ain on available-for sale curitlesAn inexperienced accountant for Marigold Corp. showed the following in the income statement: income before income taxes $432,000 and unrealized gain on available-for-sale securities (before taxes) $85,200. The unrealized gain on available-for-sale securities and income before income taxes are both subject to a 33% tax rate. Prepare a correct statement of comprehensive income. MARIGOLD CORP. Partial Statement of Comprehensive Income $ %24 %24 > >
- An inexperienced accountant for Culver Corporation showed the following in the income statement: income before income taxes $395,000 and unrealized gain on available-for-sale securities (before taxes) $92,100. The unrealized gain on available-for-sale securities and income before income taxes are both subject to a 25% tax rate. Prepare a correct statement of comprehensive income. CULVER CORPORATION Partial Statement of Comprehensive Income Textbook and Modi V v $An inexperienced accountant for Cheyenne Corp. showed the following in the income statement: income before income taxes $371,000 and unrealized gain on available-for-sale securities (before taxes) $88,700. The unrealized gain on available-for-sale securities and income before income taxes are both subject to a 35% tax rate. Prepare a correct statement of comprehensive income. CHEYENNE CORP. Partial Statement of Comprehensive IncomePrepare the bottom portion of Sheridan's 2021 income statement, beginning with "Income from continuing operations before income taxes." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Sheridan Corporation Income Statement (Partial) For the Year Ended December 31, 2021 icome from Continuing Operations before Income Taxes 1164000 ncome Tax Expense Current Deferred 189000 ncome from Continuing Operations Gain on Discontinued Operations 195000 Less -39000 156000 let Income / (Loss) %24 %24 > >
- The following are partial income statement account balances taken from the December 31, 2021, year-end trial balance of White and Sons, Inc.: restructuring costs, $300,000; interest revenue, $40,000; before-tax loss on discontinued operations, $400,000; and loss on sale of investments, $50,000. Income tax expense has not yet been recorded. The income tax rate is 25%. Prepare the lower portion of the 2021 income statement beginning with $800,000 income from continuing operations before income taxes. Include appropriate EPS disclosures. The company had 100,000 shares of common stock outstanding throughout the year.Carla Corporation reports pretax financial income of $262,600 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Rental income on the income statement is less than rent collected on the tax return by $62,300. 2. Depreciation on the tax return is greater than depreciation on the income statement by $43,200. Interest on an investment in a municipal bond of $5,900 on the income statement. 3. Carla' tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020. (a) Your answer has been saved. See score details after the due date. Compute taxable income and income taxes payable for 2020. Taxable income %24 275,800 Income taxes payable 24 82,740Martinez Corporation reports pretax financial income of $264,100 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Rental income on the income statement is less than rent collected on the tax return by $65,200. Depreciation on the tax return is greater than depreciation on the income statement by $41,800. Interest on an investment in a municipal bond of $7,000 on the income statement. 3. Martinez' tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020. (a) Compute taxable income and income taxes payable for 2020. Taxable income $enter a dollar amount Income taxes payable $enter a dollar amount 2.
- You were asked by your audit client Panga Inc., to assist them in preparing its income tax return for the period ended December 31, 2021. You investigation revealed the following information: Pre-tax financial income P10,000,000 Estimated litigation loss recognized as a provision for the current year 600,000 Accrued rental income 1,200,000 Prepaid operating expenses 250,000 Unearned rental income 300,000 Dividend income from domestic corporation 500,000 Life insurance expense 300,000 Current income tax is 25% and is expected to remain in 2022 but will increase to 30% in 2023. Assuming all temporary differences will clear by 2022, what is the total tax expense for the year?XYZ Company reported the following pretax income (loss) and related tax rates during the years 2016-2021. Year Pretax Income (loss) Tax rate 2016 $75,000 30% 2017 150,000 30% 2018 240,000 40% 2019 (540,000) 48% 2020 210,000 40% 2021 300,000 42% Prepare the journal entries for the years 2019 and 2020 to record income taxes and the tax effects of the loss. Assume that XYZ elects the carryback provision where possible and it is probable that it will realize benefits of any loss carryforward. Prepare the portion of the income statement that presents your answer in part (a) for the year ended 2019.A company's income statement reported net income of $88,500 during 2019. The income tax return excluded a revenue item of $9,500 (reported on the income statement) because under the tax laws the $9,500 would not be reported for tax purposes until 2020. Which of the following statements is incorrect assuming a 21% tax rate? 1. Income tax expense on the income statement is $16,590. 2. A $1,995 deferred tax liability is reported as of December 31, 2019. 3. The $9,500 of revenue creates a deferred tax liability. 4. Income tax expense on the income statement exceeds the tax liability to the IRS.