In its first year of operations Best Corp. had income before tax of $420,000. Best made...

In its first year of operations Best Corp. had income before tax of $420,000. Best made income tax payments totaling $157,000 during the year and has an income tax rate of 35%. What was Best's net income for the year?

Solutions

Expert Solution

Net income = Income before tax - Income tax expense

= $420,000 - $157,000

= $263,000

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

During its first year of operations, Pronghorn Corp had these transactions pertaining to its common...

During its first year of operations, Pronghorn Corp had these transactions pertaining to its common stock. Jan. 10Issued 26,200 shares for cash at $4 per share.July 1Issued 56,000 shares for cash at $7 per share. (a)Journalize the transactions, assuming that the common stock has a par value of $4 per share.(b)Journalize the transactions, assuming that the common stock is no-par with a stated value of $1 per share

During its first year of operations, Grouper Corp. had these transactions pertaining to its common stock....

During its first year of operations, Grouper Corp. had these transactions pertaining to its common stock. Jan. 10 Issued 25,600 shares for cash at $4 per share. July 1 Issued 53,000 shares for cash at $8 per share. (a) Journalize the transactions, assuming that the common stock has a par value of $4 per share. (b) Journalize the transactions, assuming that the common stock is no-par with a stated value of $2 per share.

Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the...

Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition): 44 units at $96 74 units at $76 172 units at $50 Sales for the year totaled 271 units, leaving 19 units on hand at the end of the year. Ending inventory using the average cost method is: (Do not round unit cost calculation. Round your final answer to the nearest whole dollar amount.) ------------------------------------------------------------------------------------------------------------------------------- On...

Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the...

Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition): • 45 units at $106 • 73 units at $75 • 170 units at $54 Sales for the year totaled 265 units, leaving 23 units on hand at the end of the year. Ending inventory using the average cost method is (Do not round unit cost calculation. Round your final answer to the nearest whole dollar...

Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the...

Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition): 44 units at $112 per unit 90 units at $97 per unit 174 units at $77 per unit Sales for the year totaled 290 units, leaving 18 units on hand at the end of the year. In comparing the ending inventory balances of FIFO and LIFO, the ending inventory value under FIFO less the ending inventory...

Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the...

In 2016, its first year of operations, Banks Corp. reported pretax income of $200,000 and paid...

In 2016, its first year of operations, Banks Corp. reported pretax income of $200,000 and paid $60,000 of taxes. In 2017, Banks Corp. reported pretax income of $150,000 and paid $45,000 of taxes. In 2018, Banks incurred a $400,000 net operating loss. For all years the tax rate is 30% and there were no differences between taxable income and pretax financial statement income. Also, assume the current tax law (under the TCJA of 2017 that does not allow loss carrybacks)....

Razorback Financial Corp., in its first year of operations in 2018, reported pretax financial income of...

Razorback Financial Corp., in its first year of operations in 2018, reported pretax financial income of $100,000. An investigation of that income revealed the following items:Fines from FDIC for improper practices of $20,000.Installment sales of $30,000 are recognized in financial income. These sales are accounted for by the installment sales method for income tax purposes. Only $10,000 was reported on the tax return.Warranty expenses of $15,000 were accrued for financial reporting purposes, but are not expected to result in a...

In its first year of operations, your company's income tax expense was $40,000, and your year-end...

In its first year of operations, your company's income tax expense was $40,000, and your year-end income taxes payable came to $40,000. Explain what happened here.

Sheffield Corporation, a clothing retailer, had income from operations (before tax) of $427,500, and recorded the...

Sheffield Corporation, a clothing retailer, had income from operations (before tax) of $427,500, and recorded the following before-tax gains/(losses) for the year ended December 31, 2020: Gain on disposal of equipment 30,780 Unrealized (loss)/gain on FV-NI investments (61,560 ) (Loss)/gain on disposal of building (77,520 ) Gain on disposal of FV-NI investments 37,620 Sheffield also had the following account balances as at January 1, 2020: Retained earnings $467,400 Accumulated other comprehensive income (this was due to a revaluation surplus on...

Subjects