The "other income" section of A Company's Statement of Comprehensive Income contains P5,000 in interest income, P15,000 equity in B Co. earnings, and P25,000 gain on sale of available-for-sale securities. Assuming the sale of the securities increased the current portion of income tax expense by P10,000, determine the amount of A's reclassification adjustment to other comprehensive income.
Q: The pretax financial income (or loss) figures for Whispering Company are as follows. 2016…
A:
Q: An entity reported pretax financial income of P8,000,000 for the current year. The taxable income…
A: Total tax payable = taxable income x income tax rate = P7,000,000 x 30% = P2,100,000
Q: TarHeel Corporation reported pretax book income of $1,034,000. During the current year, the net…
A: The effective tax is hypothetical tax rate = 21% Which is to be adjusted for permanent differences
Q: Gina Company reported income before tax of P3,500,000 for 2020 which included the following amounts:…
A: Net income is calculated by deducting all expense from the total revenue. It includes operating as…
Q: ABC Company prepares financial statements under IFRS. At December 13, Year 4, ABC's income for…
A: Net income: P100,000 Depreciation for accounting purposes: P10,000 Depreciation for tax purposes:…
Q: ABC, Inc, has $40,000 of dividend income and a loss from its business operations of ($22,000).…
A: Loss from business and profession will be set off against the income from other sources .
Q: he pretax financial income (or loss) figures for Tamarisk Company are as follows. 2017 78,000…
A: The process of recording business transactions in the books of accounts for the first time is known…
Q: Pina Colada Corp. has income from continuing operations of $413,000 for the year ended December 31,…
A: Net income is a company's revenue that includes all of the revenues received and expenses incurred…
Q: A reconciliation of pretax financial statement income to taxable income is shown below for Chan Inc.…
A: Deferred Tax Asset/liability: A deferred tax asset arises from overpayment or advance payment of…
Q: The "other income" section of Pigeon Company's Statement of Comprehensive Income contains P5,000 in…
A: Other comprehensive income is calculated from the income statement of the business, which includes…
Q: The following are the carrying amounts and tax bases for assets and liabilities of MNQ Company as…
A: Taxable income: Taxable income is the amount applied for computing tax liability for the tax payers…
Q: During the current year, Swallow Corporation, a calendar year C corporation, has the following…
A: If a company owns less than 20% of another corporation's stock, then the dividend received deduction…
Q: Trayer Corporation has income from continuing operations of $254,000 for the year ended December 31,…
A: Income from continuing operations: It is the after tax income generated by a company from its…
Q: The following data are available for X Corp, a Domestic Corporation, with Total Assets of P40…
A: In the context of the given question, we are required to compute the income tax payable in Quarter…
Q: The Company reported net income of P7,410,000 for the current year. The following items are included…
A: Adjusted net income is arrived at after making certain changes or adjustments in the net income.
Q: DER Company has the following in the current year: Capital gains of $8,500 Capital losses of $18,500…
A: Solution:- the following will be included in Net Income for Tax Purposes for DER Company:-…
Q: EFG & Co. started its business at the beginning of the current year. By end of first year…
A: Deferred tax liability = future taxable amount x tax rate = P400,000 x 30% = P120,000
Q: The Esposito Import Company had 1 million shares of common stock outstanding during 2018. Its income…
A: Definition: Earnings per share (EPS): The amount of net income available to each shareholder per…
Q: R15 000 still to be received, by the year end, out of the total amount receivable from a share issue…
A: Given the following question: R15 000 still to be received, by the year end, out of the total amount…
Q: Major Co. reported 2021 income of $319,000 from continuing operations before income taxes and a…
A: Formula: Tax amount = Net income before tax amount x tax rate.
Q: Flounder Corp. has income from continuing operations of $246,500 for the year ended December 31,…
A: Comprehensive Income includes Income statement and the other comprehensive income for the period…
Q: Q Corporation, an S corporation, is solely owned by V. V’s stock basis at the beginning of the year…
A: Accumulated Adjustments Account (AAA) calculates and shows the amount that is taxed by Internal…
Q: What amount of Comprehensive Income should Nathan Corporation on its statement of income and…
A: Other Comprehensive Income Other comprehensive income which are included the unrealized gain or loss…
Q: f $590,000. The book–tax difference of $369,000 was due to a $205,000 favorable temporary difference…
A: Deferred income tax is a liability to the company which arises due to differences in tax laws and…
Q: Williams Company reported pretax net income from continuing operations of $1,000,000 and taxable…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…
Q: 3. Leer Corporation's pretax income in 20x7 was P100,000. The temporary differences between amounts…
A: Leer Corporation's Pretax is 20x7 is P100,000 Leer's Effective Income tax Rate was 30% in 20x7 to…
Q: Randolph Company reported pre-tax net income from continuing operations of $800,000 and taxable…
A: Calculations of Current Tax expense and Deferred Tax Expense Current Tax expense = Taxable income…
Q: For the year ended December 31, 2006, Grim Company's pretax financial income was P2,000,000 and its…
A: The total income tax provision need to be reported in the following two components 1) current…
Q: Trayer Corporation has income from continuing operations of $294,000 for the year ended December 31,…
A: INTRODUCTION Unrealized gain / loss: A reduction in the value of an existing investment is referred…
Q: Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects…
A: The pretax financial income (or loss) figures for Shamrock Company are as follows. 2017…
Q: 4 TarHeel Corporation reported pretax book income of $1,038,000. During the current year, the net…
A: Calculate taxable income by subtracting the sum of additional tax depreciation and deduction in the…
Q: The pre-tax income statements for Moonstone Ltd. for two years (summarized) were as follows: 20X8…
A: SOLUTION TAXABLE INCOME IS THE AMOUNT OF INCOME THAT IS USED TO CALCULATE THE TAXES OWNED BY…
Q: Pina Colada Corp. has income from continuing operations of $413,000 for the year ended December 31,…
A: The income statement is prepared to know the result of the operations like whether a business is…
Q: Below is the Retained Earnings account for the year 2020 for Acadian Corp. Retained earnings,…
A: Retained earnings account is a statement showing the beginning and ending balances of retained…
Q: PUP CAF Company, provided the following income and expenses for the current year: · Dividend…
A: With the help of sale and purchase and expense we will be able to calculate the income or profit…
Q: Marigold Corp. has income from continuing operations of $219,000 for the year ended December 31,…
A: Comprehensive income:Comprehensive income represents the amount of net income plus other…
Q: Occidental Company's P10,000,000 net income for the quarter ended September 30, included the…
A: Calculation of extraordinary gain. Extraordinary gain= P1,200,000 / 3 = P400,000
Q: The pretax financial income (or loss) figures for Teal Mountain Company are as follows. 2017…
A: Year Particulars Debit Credit 2017 Income Tax Expense 19000 Income Tax Payable…
Q: Darren ltd. has a December 31 year end. For the current year, the company reported net income before…
A: Net Income: Net income is considered as a measure of profitability of a company. It is computed by…
Q: DEF Co. reported taxable income of P8M in its income tax return for the 1st year of operations. The…
A: Introduction Deferred tax refers to the difference between tax computed as per the…
Q: $ 420,000 The inventory impairments relate to Chan's Columbian tax return. The depreciation…
A: given: income tax rate is 40%. Pretax accounting income (income statement) $ 500,000…
Q: BTS Corporation reports the following information: • Correction of overstatement of depreciation…
A: Answer) Calculation of Balance of Retained Earnings on December 31, 2021 Balance of Retained…
Q: Angel Corporation reported pretax book income of $1,008,000. During the current year, the net…
A: Hypothetical tax expenses =Pretax Income × Statutory Tax=$1,008,000×34%=$342,720
Q: WEB Company had pretax financial income of P 2,500,000 in the current year. The entity made…
A: Interest received is subject to final witholding tax. It will be treated as permanent difference…
Q: An entity provided the following net of tax figures for the current year: Net income 7,700,000 Net…
A: Total comprehensive income consists of 2 part : 1. Net Income 2. Other Comprehensive Income (OCI)…
Q: Williams Company reported pretax net income from continuing operations of $1,000,000 and taxable…
A:
Q: The Esposito Import Company had 1 million shares of common stock outstanding during 2021. Its income…
A: Earnings per share implies the earnings available to each common stock holder.It is computed by…
Q: How much is the accounting income subject to tax? A. 900,000 B. 750,000 C. 700,000 D. 225,000
A: Answer are as follows
The "other income" section of A Company's Statement of Comprehensive Income contains P5,000 in interest income, P15,000 equity in B Co. earnings, and P25,000 gain on sale of available-for-sale securities. Assuming the sale of the securities increased the current portion of income tax expense by P10,000, determine the amount of A's reclassification adjustment to other comprehensive income.
Step by step
Solved in 2 steps
- Crypto Corporation recognizes net income of $150,000 along with an other comprehensive gain of $32,400 (pre-tax) for the current year ended December 31. The prior year December 31 balance in accumulated other comprehensive income is $68,400 (credit balance), and the balance in retained earnings is $48,000 (credit balance). Assume a tax rate of 25%. a. Prepare a statement of comprehensive income for the current year, and what is the AOCI account balance.A company reported in the income statement for the current year P900,000 income before provision for income tax. Please consider the following information: Rent income received in advance P150,000Interest income on time deposit 200,000Depreciation deducted for income tax purposes in excess of financial depreciation P100,000Income tax rate 30% 1. How much is the taxable income?A. 950,000B. 750,000C. 850,000D. 700,0002. How much is the accounting income subject to tax?A. 900,000B. 750,000C. 700,000D. 225,000Thank you.The "other income" section of Joey Company's Statement of Comprehensive Income contains P5,000 in interest income, P15,000 share of profit of associate, and P25,000 gain on sale of debt investment measured at fair value through OCI. Assuming the sale of the investment increased the current portion of income tax expense by P10,000, determine the reclassification adjustment to be disclosed by Joey. a. P35,000 b. P15,000 C. P 5,000 d. P 2,500 Agderamos.
- The "other income" section of Pigeon Company's Statement of Comprehensive Income contains P5,000 in interest income, P15,000 equity in Hole Co. earnings, and P25,000 gain on sale of available-for-sale securities. Assuming the sale of the securities increased the current portion of income tax expense by P10,000, determine the amount of Pigeon's reclassification adjustment to other comprehensive income.A company reported in the income statement for the current year P900,000 income before provision for income tax. Please consider the following information: Rent income received in advance 150,000Interest income on time deposit 200,000Depreciation deducted for income tax purposes in excess of financial depreciation 100,000Income tax rate 30% Required: 1. How much is the taxable income?2. How much is the accounting income subject to tax?3. How much is the permanent difference?4. How much is the net temporary differences?The following items were taken from the adjusted trial balance of the Dylex Corporation for the year ended December 31, 2020. Assume an average 25% income tax on all ens. The accounting period ends December 31, and all amounts given are pre-tax. Dylex Corporation had 11,000 common shares outstanding in 2020 and follows IFRS Cost of goods sold Depreciation expense, building Gain on exchange Gain on sale of assets from discontinued operations Insurance expense Interest expense Interest income Loss on sale of trading investment 140,000 23,000 a) Prepare a multi-step income statement in good form. Please make sure your final anewarts) are accurate to 2 decimal places Dylex Corporation For the Year Ended December 31, 200 125,000 100,000 54,000 52,000 X 58,000 135,000 Operating loss of discontinued operation to disposal date 100,000 Salaries expense 160.000 Sales ** 900,000 REQUIRED DISCLOSURES b) Calculate basic eamings per share (EPS) from continuing operations. Please make sure your final…
- The following information relating to the year ending 30 June 2023 for Penrith Ltd has been obtained from the company's records. Profit for year before further adjustments and tax Retained earnings (1 July 2022) General reserve Revaluation surplus Interim dividend paid Development costs Share Capital $33 000 5 500 3 000 increase the general reserve by $1000 2 500 5 000 4. provide for an estimated tax expense and current tax liability of $7500 on 2022-23 profita 3 500 100 000 On 30 June 2023, the directors decided to: 1. recommend a final cash dividend of $7000, to be ratified by shareholders at the Annual General Meeting to be paid on 15 August 2023. 2. write off development costs 3.An entity provided the following net of tax figures for the current year: Net income 7,700,000 Net remeasurement loss on defined benefit plan 300,000 Unrealized gain on FA@FVOCI 1,500,000 Reclassification adjustment for gain on sale of 250,000 FA@FVOCI included in the net income Share warrants outstanding 400,000 Cumulative effect of change in accounting 500,000 policy - credit Interest revenue 100,000 Equity in associate's earnings 300,000 Prior period error - underdepreciation 200,000 What is the comprehensive income for the current year? A. 8,650,000 B. 8,900,000 C. 8,950,000 D. 9,050,000A company reported in the income statement for the current year 900,000 income before provision for income tax. Please consider the following information: Rent income received in advance 150,000Interest income on time deposit 200,000Depreciation deducted for income tax purposes in excess of financial depreciation 100,000Income tax rate 30% What amount should be reported as current provision for income tax or current tax expense for the current year?
- The pretax financial income (or loss) figures for Shamrock Company are as follows. 2017 81,000 2018 (51,000 ) 2019 (35,000 ) 2020 111,000 2021 95,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 25% tax rate for 2017 and a 20% tax rate for the remaining years.Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carryforwards. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit 2017 enter an account title to record carryback enter a debit amount enter a…A company reported in the income statement for the current year 900,000 income before provision for income tax. Please consider the following information: Rent income received in advance 150,000Interest income on time deposit 200,000Depreciation deducted for income tax purposes in excess of financial depreciation 100,000Income tax rate 30% What amount should be reported as current provision for income tax or current tax expense for the current year?A. 225,000B. 270,000C. 230,000D. 220,000Nina Corporation, with the total assets of P15,000,000 (MSME), shows the following data during taxable year: Sales Interest Income, net of 20% final tax Cost of Sales Salary expense Interest expense Rent expense Advertising expense Depreciation expense What is the correct amount of itemized deduction?