Question
In: Accounting
The following information is provided for X Corporation for the year ending December 31, 2018: Book...
The following information is provided for X Corporation for the year ending December 31, 2018:
|
Book earnings before income taxes |
$6,000 |
|
Tax exempt interest income |
600 |
|
Taxes on foreign income above the U.S. statutory rate |
200 |
|
State income taxes (before Federal benefit) |
500 |
|
Annual increase in warranty reserve |
200 |
|
Dividend received deduction on dividends from foreign subsidiaries |
600 |
|
Foreign tax credits available after the TCJA |
400 |
|
Tax over book depreciation for 2018 |
500 |
|
Current year increase in valuation allowance |
1,000 |
|
Entertainment expenses |
400 |
|
Foreign derived intangible income (FDII) special deduction |
600 |
X Corporation has not made an assertion under APB 23 that their non-U.S. undistributed earnings will be invested indefinitely or that the earnings will be solely remitted in a tax-free liquidation. The U.S. statutory rate is 21%. Based on all of the information presented, prepare an effective rate reconciliation showing the dollar amount of each reconciling item (i.e. do not combine potentially immaterial amounts) and the impact of each reconciling item on the effective tax rate.
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Monty Corporation has provided the following information for the year ended December 31, 2020. Monty Corporation...
Monty Corporation has provided the following information for the
year ended December 31, 2020.
Monty Corporation
Income Statement
For the Year Ended December 31, 2020
Revenue
Service
Revenue
102,500
Dividend
Revenue
11,000
$113,500
Operating Expenses
Supplies
Expense
2,200
Depreciation
Expense
20,900
Advertising
Expense
1,000
Meals and
Entertainment Expense
6,000
Rent
Expense
9,400
Litigation
Expense
8,300
Salaries
and Wages Expense
40,600
Warranty
Expense
4,100
92,500
Operating Income before income tax
$21,000
Additional Information:
1.
Monty is privately owned, and uses ASPE....
Culver Corporation had a net income for the current year ending December 31, 2018 of $1,150,000....
Culver Corporation had a net income for the current year ending
December 31, 2018 of $1,150,000. Throughout 2018 the following
items were outstanding:
?
440,000 common shares
?
21,000 Class A $3 cumulative preferred shares that were
convertible to common shares at a rate of 1:1
?
49,000 Class B $4 non-cumulative preferred shares that were
convertible at a rate of two preferred shares to one common
share.
?
$470,000, 8% bonds that were convertible to 16,000 common
shares
?...
The following information was available for Waterway Company at December 31, 2018: beginning inventory $107000; ending...
The following information was available for Waterway Company at
December 31, 2018: beginning inventory $107000; ending inventory
$61000; cost of goods sold $6132000; and sales $1440000. Waterway’s
days in inventory in 2018 was 3.6 days. 21.3 days. 6.4 days. 5.0
days.
The following information is available for Sheffield Company at December 31, 2018: beginning inventory $139000; ending...
The following information is available for Sheffield Company at
December 31, 2018: beginning inventory $139000; ending inventory
$121000; cost of goods sold $845000; and sales $1880000.
Sheffield’s inventory turnover in 2018 is 14.5 times. 6.2 times.
6.5 times. 6.9 times.
The following annual budget data relates to Navient Inc. for the year ending December 31, 2018....
The following annual budget data relates to Navient Inc. for the
year ending December 31, 2018.
Item
APP
Item
ZAP
Sales budget:
Anticipated volume in units
400,000
250,000
Unit selling price
$23.00
$29.00
Production budget:
Desired ending finished goods units
27,000
20,000
Beginning finished goods units
34,000
11,000
Direct materials budget:
Direct materials per unit (pounds)
3
4
Desired ending direct materials pounds
35,000
16,000
Beginning direct materials pounds
43,000
12,000
Cost per pound
$4.00
$5.00
Direct labor budget:...
The following annual budget data relates to Navient Inc. for the year ending December 31, 2018....
The following annual budget data relates to Navient Inc. for the
year ending December 31, 2018.
Item
APP
Item
ZAP
Sales budget:
Anticipated volume in units
400,000
250,000
Unit selling price
$23.00
$29.00
Production budget:
Desired ending finished goods units
27,000
20,000
Beginning finished goods units
34,000
11,000
Direct materials budget:
Direct materials per unit (pounds)
3
4
Desired ending direct materials pounds
35,000
16,000
Beginning direct materials pounds
43,000
12,000
Cost per pound
$4.00
$5.00
Direct labor budget:...
Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 2017 Sales...
Powell Panther Corporation: Income Statements for Year
Ending December 31 (Millions of Dollars)
2018
2017
Sales
$
3,250.0
$
2,600.0
Operating costs excluding depreciation and amortization
2,763.0
2,210.0
EBITDA
$
487.0
$
390.0
Depreciation and amortization
90.0
78.0
Earnings before interest and taxes (EBIT)
$
397.0
$
312.0
Interest
72.0
57.0
Earnings before taxes (EBT)
$
325.0
$
255.0
Taxes (40%)
130.0
102.0
Net income
$
195.0
$
153.0
Common dividends
$
176.0
$
122.0
Powell Panther Corporation: Balance Sheets...
Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2019 2018 Sales...
Powell Panther Corporation: Income Statements for Year
Ending December 31 (Millions of Dollars)
2019
2018
Sales
$
1,820.0
$
1,400.0
Operating costs excluding depreciation and amortization
1,547.0
1,190.0
EBITDA
$
273.0
$
210.0
Depreciation and amortization
46.0
36.0
Earnings before interest and taxes (EBIT)
$
227.0
$
174.0
Interest
40.0
30.8
Earnings before taxes (EBT)
$
187.0
$
143.2
Taxes (25%)
74.8
57.3
Net income
$
112.2
$
85.9
Common dividends
$
101.0
$
68.7
Powell Panther Corporation: Balance Sheets...
Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 2017 Sales $8,400.0...
Rhodes Corporation: Income Statements for Year Ending
December 31 (Millions of Dollars)
2018
2017
Sales
$8,400.0
$7,000.0
Operating costs excluding depreciation
6,510.0
5,950.0
Depreciation and amortization
228.0
182.0
Earnings before interest and taxes
$1,662.0
$868.0
Less Interest
181.0
151.0
Pre-tax income
$1,481.0
$717.0
Taxes (40%)
592.4
286.8
Net income available to common stockholders
$888.6
$430.2
Common dividends
$800.0
$344.0
Rhodes Corporation: Balance Sheets as of December 31
(Millions of Dollars)
2018
2017
Assets
Cash
$101.0
$84.0
Short-term investments
42.0
35.0...
Free Cash Flows Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018...
Free Cash Flows
Rhodes Corporation: Income Statements for Year Ending
December 31 (Millions of Dollars)
2018
2017
Sales
$3,300.0
$3,000.0
Operating costs excluding depreciation
2,558.0
2,550.0
Depreciation and amortization
73.0
63.0
Earnings before interest and taxes
$669.0
$387.0
Less Interest
71.0
65.0
Pre-tax income
$598.0
$322.0
Taxes (40%)
239.2
128.8
Net income available to common stockholders
$358.8
$193.2
Common dividends
$323.0
$155.0
Rhodes Corporation: Balance Sheets as of December 31
(Millions of Dollars)
2018
2017
Assets
Cash
$49.0
$39.0
Short-term...
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