Ashton Corporation is headquartered in Pennsylvania and has a state income tax base there of $550.000. Of this amount. $89,000 was nonbusiness income. Ashton's Pennsylvania apportionment factor is 41.70 percent. The nonbusiness income allocated to Pennsylvania was $47,500. Assuming a Pennsylvania corporate tax rate of 8.25 percent, what is Ashton's Pennsylvania state tax liability? Note: Round your answer to the nearest whole dollar amount.
Q: Findley Company and Lemon Company both use predetermined overhead rates to apply manufacturing…
A: At the beginning of the accounting period, a predefined overhead rate is computed by dividing the…
Q: Flint Tooling Company is considering replacing a machine that has been used in its factory for two…
A: Replacement Decisions are concerned with taking a decision as to a particular asset should be…
Q: For the following items, make a journal entry of the original transaction (if applicable) a. Paid…
A: S. No. Particulares Debit Credit a. Prepaid insurance A/c ($10,800 x 5/6) $9,000 To…
Q: Clearwater Co. reported sales revenue of $4,625 in its income statement for the year ended December…
A: Bad debts expense: Bad debts expense is recognized in the books of the company when a debtor is…
Q: On December 29, 2021, Patel Products, Incorporated, sells a delivery van that cost $20,000. The…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: What is the value of assets if: Liabilities = R50,000 and Capital = R10,000
A: Lets understand the basics. As per balance sheet equation, total assets is always equal to total…
Q: Gatekeeper Company has the following information: Inventory - January 1 Cost Net realizable value…
A: Inventory Valuation Inventory should be valued at a lower of: Cost or Net realizable value Any…
Q: Aylin Selin has a small shop selling clothes and shoes. Her commercial income in the year 2022…
A: This is a question of Turkish Taxation. Taxable business income is calculated by subtracting the…
Q: Martial Arts Schools, Inc. is authorized to issue 200,000 shares of $3 par common stock. The company…
A: A company can issue dividend in cash or in kind. Cash dividend is generally issued when the company…
Q: SCHEDULE OF EXPANDED WITHHOLDING TAX (EWT) Income Payment EWT Income Payment EWT…
A: As per US taxation law, there are certain transcations specified on which withholding taxes needs to…
Q: QUESTION 11 Moe, Larry, and Curly form a limited partnership. Moe and Larry are general partners.…
A: The correct option is (d) Moe ,Larry and Curly equally.
Q: In 2021, a 52-year-old participant in a 401(k) plan may contribute a maximum of: Multiple Choice O O…
A: A qualifying profit-sharing plan may include a component known as a 401(k), which gives workers the…
Q: On December 29, Patel Products, Incorporated, sells a delivery van that cost $20,000. After…
A: Accumulated depreciation is the cumulative balance of the depreciation expense which is shown in the…
Q: The SP Corporation makes 50,000 motors to be used in the production of its sewing machines. The…
A: Make or buy decisions: This is choosing the best alternative to make or buy the goods from external…
Q: Diaz Company owns a machine that cost $125,400 and has accumulated depreciation of $90,900. Prepare…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Territory and Product Profitability Analysis Coast to Coast Surfboards Inc. manufactures and sells…
A: Cost to cost Surfboards Inc. Contribution Margin By Territory East Coast West Coast A. Sales…
Q: A corporation that had 26,200 shares of common stock outstanding declared a 5-for-1 stock split. a.…
A: Journal entry is a primary entry that records the financial transactions initially. The transactions…
Q: Prepare the adjusting entry to record the lifetime expected credit losses for this customer on 31…
A: On 31 December 20X7: Since, The company expects to be able to collect $26,000 from the customer, the…
Q: Elijah James is in his early 30s and is thinking about opening an IRA. He can't decide whether to…
A: Traditional IRA - Traditional IRA is where a person has to pay tax after the withdrawal of the…
Q: Budgeted purchases of material A for the second quarter would be:
A: - 2 pound of Material A is required to produce each unit. - Company maintain 20% closing stock of…
Q: A man worked 48 hours in one week. His regular pay was $7.20 per hour with time and a half for…
A: As per the Federal Law, overtime hours should be paid at the rate of one and half of the regular pay…
Q: Lorna Hall’s real estate tax of $2,010.88 was due on December 14, 2017. Lorna lost her job and could…
A: The tax department may impose a penalty as a form of punishment if a taxpayer fails to pay their…
Q: Mulkilteo Company obtained a charter from the state in January of this year. The charter authorized…
A: INTRODUCTION Stockholders' equity is the total of issued share capital to the shareholders plus…
Q: The General Fund for Nisland has the following budget for the current year:…
A: A journal is the company's official book in which all business transactions are recorded in…
Q: a) Calculate the break-even sales for the month? b) Calculate the margin of safety in sales dollars?…
A: Break even Point in case of Multiple products: 1 .The sales mix is a calculation that determines the…
Q: JAT is finalizing the ending inventory balance. The following information has been collected: a. The…
A: Ending Inventory Rectification The final value of the ending inventory for the financial statement…
Q: Following is information on an investment in a manufacturing machine. The machine has zero salvage…
A: INTRODUCTION The Net Present Value is the present value of all future cash flows from a project…
Q: Denzel Corporation is planning to issue bonds with a face value of $750,000 and a coupon rate of 7.5…
A: Bond is a form of finance, Companies and the government issue bonds, Public purchases bonds from the…
Q: The Russell Company provides the following standard cost data per unit of product: Direct material…
A: Direct material usage variance is the difference between Standard Cost and Actual cost of a product…
Q: Compute the activity rates for each of the three cost pools.
A: Activity Cost Pools Activity Driver Assembling products assembly hours Designing products…
Q: The board of directors of Builders Equipment Corporaion (BEC) declared cash dividends of $3.3…
A: Lets understand the basics. There are generally two types of shareholders are there which are, (1)…
Q: The Verbrugge Publishing Company's 2019 balance sheet and income statement are as follows (in…
A: Introduction The assets and liabilities of a firm are clearly described on a balance sheet, which is…
Q: Perez Company acquires an ore mine at a cost of $2,940,000. It incurs additional costs of $823,200…
A: Depletion expense : Depletion expense is the cost that is charged against the profits for the use of…
Q: Please provide answer as same format in question. Thanks.
A: Value and Non Value added 'costs A cost that raises the excellence of a service or product or…
Q: “I know headquarters wants us to add that new product line,” said Dell Havasi, manager of Billings…
A: Return on investment or ROI as commonly referred to as, is the ratio calculated between the net…
Q: Bernie Long wants to retire to California when she is 60 years of age. Bernie is now 40. She…
A: The present value means the value of the investment from a future date. It is the amount that is…
Q: Mariette, age 29, earns $200,000 per year. Her employer, Taxes Are Us, sponsors a qualified profit…
A: Retirement benefit plans are provided by employers to their employees. Some retirement plans are…
Q: 081.2 EX 20-11 Equivalent units of production and related costs The charges to Work in…
A: The phrase "equivalent units of production" refers to the estimated number of finished units that…
Q: What is the consolidated cost of sales for the year ended 30 June 20X5? a. $340,000 b. $350,000 c.…
A: The answer for the multiple choice question and relevant working are presented hereunder : Wye…
Q: Steven Company has fixed costs of $428,856. The unit selling price, variable cost per unit, and…
A: Break even sales is the dollar amount of revenue at which a business earns a profit of zero. This…
Q: M36. Austin became a California resident on June 1, 2021. He earned the following income during…
A: The correct solution is $50,000
Q: Heads Up Company was started several years ago by two hockey instructors. The company’s comparative…
A: The cash flow from various activities during the period are classified as operating, investing and…
Q: Read Section 1374 for built-in-gain tax 1. When does the tax apply?
A: The answer for the question on the Section 1374 for built - in - gain tax is given hereunder :…
Q: 19. % BAD Company issues 9%, 10-year bonds with a face amount of $1,000,000 on January 1, 20A for…
A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…
Q: Gallerani Corporation has received a request for a special order of 4,500 units of product A90 for…
A: Financial advantage of disadvantage on a special order is determined in order to make a decision as…
Q: A company used straight-line depreciation for equipment that cost $12,000, had a salvage value of…
A: Depreciation: The reduced value of the organization's fixed assets due to normal wear and tear of…
Q: Merits and demerits of the cost value profit analysis CVP
A: Lets understand the basics. Cost volume profit analysis (CVP) is as name suggest analysis of total…
Q: Following are transactions for Vitalo Company. November 1 Accepted a $7,000, 180-day, 5% note from…
A: Interest from November 1st to December 31st = $7,000×5%×60/360 =$58.3333333333
Q: Determine the financial statement effects of using lower of cost and net realizable value to report…
A: 1. In Income statement, there will be no effect on Revenue side due to decrease in the value of…
Q: Sterne acquired 60% of the voting equity shares of Defoe. Defoe had the following equity at the date…
A: Answer:- Goodwill :- When a company is acquired by another, goodwill an intangible asset is also…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Ashton Corporation is headquartered in Pennsylvania and has a state income tax base there of $543,000. Of this amount, $63,000 was nonbusiness income. Ashton's Pennsylvania apportionment factor is 42.35 percent. The nonbusiness income allocated to Pennsylvania was $28,250. Assuming a Pennsylvania corporate tax rate of 8.25 percent, what is Ashton's Pennsylvania state tax liability?Maxwell's annual financial statements show operating profit before interest and tax of $415,386 thousand, net income of $254,418 thousand, provision for income taxes of $73,016 thousand and net nonoperating expense before tax of $87,593 thousand.Assume Maxwell's statutory tax rate for the year is 37%. What is Maxwell's tax shield?:Jurisdiction B levies a flat 7 percent tax on the first $5 million of annual corporate income. Required: Jersey Incorporated generated $2.7 million income this year. Compute Jersey’s income tax and determine its average and marginal tax rate on total income. Leray Incorporated generated $7.4 million income this year. Compute Leray’s income tax and determine Leray’s average and marginal tax rate on total income. What type of rate structure does Jurisdiction B use for its corporate income tax?
- Suppose that in addition to $18.05 million of taxable income, Texas Taco, Inc., received $2,300,000 of interest on state-issued bonds and $730,000 of dividends on common stock it owns in Arizona Taco, Inc. (Use corporate tax rate of 21 percent for your calculations.) a. Calculate Texas Taco’s income tax liability. (Enter your answer in dollars not in millions.) Income tax liability --- b. What are Texas Taco’s average and marginal tax rates on taxable income? (Round your answers to 2 decimal places.) Average tax rate % Marginal tax rate %Maxwell's annual financial statements show operating profit before interest and tax of $1,038,466 thousand, net income of $636,044 thousand, provision for income taxes of $182,540 thousand and net nonoperating expense before tax of $218,982 thousand. Assume Maxwell's statutory tax rate for the year is 37%. Maxwell's tax shield is: Select one: O a. $81,023 thousand b. $182,540 thousand c. None of these are correct. d. $67,540 thousand. e. $591,843 thousandHerger Corporation does business in California, Nevada, and Oregon and has income tax nexus in these states as well. Herger's California state tax base was $939,500 after making the required federal/state adjustments. Herger's federal tax return contains the following items: Item Amount Federal T-note interest income $ 4,700 Nevada municipal bond interest income $ 4,040 California municipal bond interest income $ 6,400 Interest expense related to T-note interest income $ 1,710 Royalty income $ 112,000 Travel expenses $ 9,300 Determine Herger's business income.
- (Corporate income tax) Meyer Inc. has taxable income (earnings before taxes) of $284,000. Calculate Meyer's federal income tax liability using the tax table shown in the popup window: Taxable Income Marginal Tax Rate $0−$50,000 15% $50,001−$75,000 25% $75,001−$100,000 34% $100,001−$335,000 39% $335,001−$10,000,000 34% $10,000,001−$15,000,000 35% $15,000,001−$18,333,333 38% Over $18,333,333 35% . What are the firm's average and marginal tax rates? The firm's tax liability for the year isLane Company (LC), a calendar year entity, has one owner, who is in the 31% Federal income tax bracket (any net capital gains or dividends would be taxed at a 15% rate). LC's gross income is $450,000, and its ordinary trade or business deductions are $215,000. Compute the Federal income tax liability on LC's income for the current year t1nder the following assumptions. Ignore the standard deduction (or itemized deductions) and the deduction for qualified business income a. LC is operated as a proprietorship, and the owner withdraws $80,000 for personal use. b. LC is operated as a corporation, pays out $11,000 as salary, and pays no dividends to its shareholder. c. LC is operated as a corporation and pays out no alary or dividends to its shareholder. d. LC is operated as a corporation, pays out $100,000 as salary, and pays out the remainder of its earnings as dividends.Oldham Incorporated conducts business in State M and State N, which both use the UDITPA three-factor formula to apportion income. State M's corporate tax rate is 4.5 percent, and State N's corporate tax rate is 7 percent. This year, Oldham had the following sales, payroll, and property (in thousands of dollars) in each state: Gross receipts from sales Payroll expense Property costs State M $ 3,000 800 900 State N $ 7,500 1,200 1,000 Total $ 10,500 2,000 1,900 Required: If Oldham's before-tax income was $3 million, compute its State M and State N tax. (Round all apportionment factors to 4 decimal places, e.g., 47.15% would be 0.4715. Enter "Apportionment percentage" and "Tax rate" in decimals and not in percentage. Do not round any intermediate values. Enter your answers in dollars and not in millions or thousands of dollars.)
- Thornton, Inc., had taxable income of $129632 for the year. The company's marginal tax rate was 34 percent and its average tax rate was 23.5 percent. How much did the company have to pay in taxes for the year? a.30432 b.44075 c.30776 d.29074! a) Tax Required information [The following information applies to the questions displayed below.] BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $118,500 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 2.9% of the first $7,000 paid to its employee. Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three separate situations (a), (b), and (c). (Round your answers to 2 decimal places.) FUTA SUTA b) Tax a. b. C. FICA-Social Security FICA-Medicare Gross Pay through August $ 6,700 18,500 112,500 FUTA SUTA c) Tax FICA-Social Security FICA-Medicare FUTA SUTA FICA-Social Security FICA-Medicare Gross Pay for September $ 400 2,400 8,300 September Earnings Subject to Tax 400.00 400.00 $ September Earnings Subject to Tax September Earnings Subject to Tax Tax Rate 6.20% 1.45% 0.60% 2.90% Tax Rate Tax Rate Tax Amount $…Oldham Incorporated conducts business in State M and State N, which both use the UDITPA three-factor formula to apportion income State M's corporate tax rate is 4.5 percent, and State N's corporate tax rate is 7 percent. This year, Oldham had the following sales, payroll, and property (in thousands of dollars) in each state: Gross receipts from sales Payroll expense Property costs State M 3,000 800 900 State N $ 7,500 1,200 1,000 Total $ 10,500 2,000 1,900 Required: Oldham's before-tax income was $3 million. Compute Oldham's State M and State N tax if State N uses an apportionment formula in which the sales factor is double-weighted. (Round all apportionment factors to 4 decimal places, e.g., 47.15% would be 0.4715. Enter "Apportionment percentage" and "Tax rate" in decimals and not in percentage. Do not round any intermediate values. Enter your answers in dollars and not in millions or thousands of dollars.)