Tuscan Incorporated had a retained earnings balance of $60,000 at December 31 of the prior year. In the current year, Tuscan reported the following results. • Reported net income of $100,000. . • Cash dividends of $33,000 declared and paid. • Tuscan discovered this year that it made a math error three years ago; to correct for this, $12,000 (net of tax) must be addec the current year's beginning retained earnings balance. • Revised an estimate of a machine's salvage value. Depreciation increased by $1,000 per year. . Calculate the retained earnings balance at December 31 of the current year. Note: Amounts to be deducted should be indicated with a minus sign. TUSCAN INCORPORATED Statement of Retained Earnings For Current Year Ended December 31 Retained earnings, December 31, prior year, as previously reported Prior period adjustment $ $ 60,000 60,000 60,000

This year, Sooner Company reports a deficit in current E&P of ($304,000). Its accumulated E&P at the beginning of the year was $220,000. Sooner distributed $440,000 to its sole shareholder, Boomer Wells, on June 30 of this year. Boomer's tax basis in his Sooner stock before the distribution is $86,000. (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) c. What is Sooner's balance in accumulated E&P on the first day of next year? Balance in accumulated E&P at the beginning of next year

Assume a company starts operations on 1/1/2013 with an equity investment of $776,750. The companies next 7 years of financial performance are listed below. Assume that the company has no permanent or temporary differences for the first three fiscal years. During fiscal 2016 the company experiences a net operating loss. The marginal corporate tax rates for each year are located on the Income Statement. Calculate taxable income (IRS), taxes payable (IRS)and tax expenses (USGAAP). How should the company accounts for the Net Operating Loss. Provide all Journal Entries & T-Accounts. Create a complete set of financial statements (I/S, SRE, B/S, SCF) for the firm for years 2013 through 2019.   INCOME STATEMENT 1/1/13 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 Cash Sales - $776,750 $776,750 $776,750 $119,500 $836,500 $717,000 $746,875 Credit Sales - - - - - - - - Instalment Sales - - - - - -…

This year, Soner Company reports a deficit in current E&P of ($304,000). Its accumulated E&P at the beginning of the year was $220,000. Sooner distributed $440,000 to its sole shareholder, Boomer Wells, on June 30 of this year. Boomer's tax basis in his Sooner stock before the distribution is $86,000. (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) b. What is Boomer's tax basis in his Sooner stock after the distribution? Tax basis

Jayhawk Company reports current E&P of $310,000 and accumulated E&P of negative $282,500. Jayhawk distributed $505,000 to its sole shareholder, Christine Rock, on the last day of the year. Christine s tax basis in her Jayhawk stock is $128,750. What is Jayhawk s balance in accumulated E&P on the first day of next year?

Katt Co. began operations two years ago (Year 1) and recognized $37,000 in business income and $1,000 in taxable capital gains that year. Last year (Year 2) the company incurred a business loss of $25,000, a taxable capital gain of $2,000, and an allowable capital loss of $5,000. During the current year (Year 3) business income was $50,000, taxable capital gains were $4,000, and the company received $10,000 in dividends from a taxable Canadian corporation. Katt Co. utilizes any unused losses in the earliest years possible, Which of the following taxable incomes are correct after all carry-over adjustments have been made? Select one or more: a. Year 1: $13,000; Year 2: $0; Year 3: $61,000 b. Year 1: $12,000; Year 2: $0; Year 3: $52,000 O c. Year 1: $38,000; Year 2: ($28,000); Year 3: $64,000

At the end of its first year of operations on December 31, 2022, the Metro Company reported pretax financial income of $100,000. An investigation of that income revealed the following items:· Bad debts expense of $12,000 was recognized (reported on 2022 income statement). The accounts will be written off (tax deductible) in 2023.· Interest received on municipal bonds: $7,500.· Warranty expenses of $16,000 were accrued for financial reporting purposes, but were not expected to result in a cash payment until 2023.· Depreciation on the tax return exceeded depreciation for financial reporting purposes by $32,000.Assume that any deferred tax assets are considered more likely than not to be realized. The enacted income tax rate for all years is 25%.Required:1) Compute taxable income. Show your calculation. If not, no credit.2) Prepare the entry to record income tax expense and any related assets and liabilities for Metro on December 31, 2022.

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…

Sol Limited. reported earnings of $510,000 in 20X8. The company has $91,000 of depreciation expense this year, and claimed CCA of $142,000. The tax rate was 25%. At the end of 20X7, there was a $122.000 loss carryforward that was not recorded because use was considered less than probable. The company also reported a deferred tax liability of $71,000 caused by capital assets with a net book value of $1,310,000 and UCC of $1,010,000. The tax rate had been 20% in 20X7 Required: What is the amount of income tax expense in 20X8? Tax expense Prepare the income tax entry or entries. View transaction list No 1 Date 20X8 View journal entry worksheet Income tax expense Income tax payable Deferred income tax asset General Journal Debit Credit 114,750