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- Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization?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. $220During the year, Belyk Paving Co. had sales of $2,575,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,367,000, $690,000, and $480,000, respectively. In addition, the company had an interest expense of $305,000 and a tax rate of 25 percent. (Ignore any tax loss or carryforward provision and assume interest expense is fully deductible.) a. What is the company's net income? (A negative answer should be indicated by a minus sign. Do not found intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is its operating cash flow? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) a. Net income b. Operating cash flow
- During the year, Belyk Paving Co. had sales of $2,380,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,320,000, $605,000, and $441,000, respectively. In addition, the company had an interest expense of $266,000 and a tax rate of 22 percent. (Ignore any tax loss or carryforward provision and assume interest expense is fully deductible.) What is the net income? What is its operating cash flow?A corporation sold a piece of equipment during the current tax year for $78,600. The accounting records show that its cost basis, B, is $190,000 and the accumulated depreciation is $139,200. Assume that the effective income tax rate as a decimal is 0.40 (40%). Based on this information, Solve, what is (a) the gain (loss) on disposal, (b) the tax liability (or credit) resulting from this sale, (c) the tax liability (or credit) if the accumulated depreciation was $92,400 instead of $139,200 ?During the year, Belyk Paving Company had sales of $2,410,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,330,000, $625,000, and $447,000, respectively. In addition, the company had an interest expense of $272,000 and a tax rate of 24 percent. (Ignore any tax loss carryforward provision and assume interest expense is fully deductible.) a. What is the company's net income? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g.. 32. b. What is its operating cash flow? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. a. Net income b. Operating cash flow 27
- Forever Incorporated’s partial income statement after its first year of operation is as follows: Income before income taxes P3,750,000 Income tax expense Current P1,035,000 Deferred 90,000 1,125,000 Net Income P2,625,000 Forever uses straight-line method of depreciation for financial reporting purposes and accelerated depreciation method for tax purposes. The amount charged to depreciation expenses on its tax return this year was P1,800,000. No other differences existed between book income and taxable income except for the amount of depreciation. Assuming a 30% tax rate, what amount was deducted for depreciation on the company’s book for the current year?Azure 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 P150,000 Interest income on time deposit 200,000 Depreciation deducted for income tax purposes in excess of financial depreciation P100,000 Income tax rate 30% How much is the permanent difference?A. 200,000B. 100,000C. 150,000D.350,000The following information relates to Sustagoon Ltd. Profit before tax for the year ended 30 June 2020 was $504,400. The following items were used in determining that profit: Sales revenue 1,450,800 Cost of sales 608,400 Selling expenses 156,000 Administrative expenses 93,600 Other expenses 57,200 Interest expense 31,200 504,400 Other events which occurred during the year: Gain on revaluation of land 26,000 Assume the company’s taxation rate is 30c in the dollar. Required: Prepare a statement of profit or loss and other comprehensive income for the year ended 30 June 2020, in accordance with the requirements of AASB 101. Based on the information received determine whether to disclose by function or nature. Ignore comparatives as the information is not provided.
- a piece of machinery cost $500.tax depreciation to date has amounted to $200 and depreciation charged in the financial statements to date is $100 the rate of tax is 30% ? what is the deferred tax liability in relation to this asset?21) Santos Company had a 40 percent tax rate. Given the following pre-tax amounts, what would be the income tax expense reported on the face of the income statement? $ 300,000 180,000 24,000 33,000 27,000 3,000 6,000 Sales revenue Cost of goods sold Salaries and wages expense Depreciation expense Dividend revenue Utilities expense Interest expense 22) York Corporation reports the following information: Correction of understatement of depreciation expense in prior years, net of tax $ 645,000 480,000 1,500,000 3,000,000 Dividends declared Net income Retained earnings, 1/1/21, as reported York should report retained earnings, 12/31/21, as adjusted at? 23) Jersey Company reported the following information for 2021: Sales revenue 1,530,000 1,050,000 165,000 Cost of goods sold Operating expenses Unrealized holding gain on available-for-sale securities Cash dividends received on the securities 120,000 6,000 For 2021, Jersey would report other comprehensive income of? 24) For the year ended…FGH Corporation had the following in 2021: Sales P 3.4M; Cost of sales P 1.2M; Admin expense P 0.3M; Selling expenses P .5M; other taxable income from operations P .1M. What is deductible expense if the company uses OSD?* a. 920,000 b. 1,360,000 c. 880,000 d. 800,000 Using the problem above, what is the income tax payable?* a. 330,000 b. 375,000 c. 575,000 d. 525,000