Question

In: Accounting

The following information is available for Ryan Corporation: Assets at cost - $160,000 (5 year life,...

The following information is available for Ryan Corporation: Assets at cost - $160,000 (5 year life, straight-line depreciation and purchased 4 years ago); NBV - $32,000 while UCC is $47,000 with a CCA rate – 30%; meals and entertainment recorded in the books - $10,000; golf dues paid - $2,500; accounting income - $90,000. Based on this information and a tax rate of 45%, what is taxable income?

114,508

115,400

104,508

51,930

Solutions

Expert Solution

Pretax accounting income                     90,000
Add
Accounting depreciation                     32,000
Meals & Entertaiment                     10,000
Less
Tax depreciation-47000*30%                   (14,100)
Golf dues paid                     (2,500)
Taxable income                  115,400
Option B is correct

ekkarill92 answered 3 months ago
Next > < Previous

Related Solutions

Topic-Revaluation of Intangible Assets: The following information on Delta Lts is available. Sh. Cost of production...
Topic-Revaluation of Intangible Assets: The following information on Delta Lts is available. Sh. Cost of production quotas (purchased 1-1-2007) 2,000,000 Accumulated amortization on the 31 -12 2008 400,000 Total useful life 10 years Financial Year End 31st December At the beginning of 2009 the production quota were valued at a fair value of Sh.2,400,000 by referring to the active market for production quotas.Ignore taxation implications. Required: i) Journal entries to record the above using restatement method (show your workings)
The following information is available for United Corporation on December 31 for the year just ended....
The following information is available for United Corporation on December 31 for the year just ended. A review of the $12,000 unadjusted balance in the prepaid rent account shows a remaining balance of $8,750 at the end of the year. $2,200 of the television advertising paid for in advance has been used. The yearly depreciation on the building is $150. The yearly depreciation on the equipment is $800. $1,200 of the advertising paid for in advance has been published by...
The following information for December is available for Barclay Corporation, whose only manufacturing cost is Direct...
The following information for December is available for Barclay Corporation, whose only manufacturing cost is Direct Material (D/M) and maintains no Finished Good Inventory: Actual Balance Sheet as of December 1 (end of November) Cash $ 42,700 D/M Accounts Payable $ 21,700 Accounts Receivable     20,000 Owners’ Equity (Stock and Retained Earnings)   198,000 D/M Inventory     31,000 Net Plant & Equip 126,000 $219,700 $219,700 December Budget Information: Sales (all on credit) $72,000 D/M Purchases (all on credit) $45,000 Cash Receipts...
Cost Flow Relationships The following information is available for the first year of operations of Creston...
Cost Flow Relationships The following information is available for the first year of operations of Creston Inc., a manufacturer of fabricating equipment: Sales $1,270,300 Gross profit 343,000 Indirect labor 114,300 Indirect materials 47,000 Other factory overhead 21,600 Materials purchased 647,900 Total manufacturing costs for the period 1,402,400 Materials inventory, end of period 47,000 Using the above information, determine the following amounts: a. Cost of goods sold $ b. Direct materials cost $ c. Direct labor cost $
Cost Flow Relationships The following information is available for the first year of operations of Creston...
Cost Flow Relationships The following information is available for the first year of operations of Creston Inc., a manufacturer of fabricating equipment: Sales $909,300 Gross profit 245,500 Indirect labor 81,800 Indirect materials 33,600 Other factory overhead 15,500 Materials purchased 463,700 Total manufacturing costs for the period 1,003,900 Materials inventory, end of period 33,600 Using the above information, determine the following amounts: c. Direct labor cost $
The following information pertaining Juniper Corporation is available for the year ended 2015,its first year of...
The following information pertaining Juniper Corporation is available for the year ended 2015,its first year of operations: : Pretax financial income, $200,000. Excess of tax deprecation over book depreciation equals $36,000 in 2015 (future taxable). This temporary difference (i.e., $36,000 depreciation expense) will be reversed as follows: $23,000 in 2016 and $13,000 in 2017. The tax rates of 2015, 2016 and 2017 are 30%, 25%, and 25%, respectively. Instructions: (a) Compute Juniper’s 2015 taxable income. (b) Prepare a schedule to...
The following information is available for Omari Corporation for 2018 :
The following information is available for Omari Corporation for 2018 :            Beginning inventory               $   700,000            Ending inventory                         800,000            Cost of goods sold                  6,000,000            Sales                                        8,000,000InstructionsCalculate the inventory turnover for Omari Corporation. (2.5 marks)Calculate days in inventory for Omari Corporation. (2.5 marks)
The following information is available on the percentage rates of return on various assets for the...
The following information is available on the percentage rates of return on various assets for the last three years. You determine that this is a sample which is representative of the data population for these securities. Security Year 1 Security Year 1 Year 2 Year 3 Stock A 6% 18% 60% Stock B 32% 22% 32% Market 50% 12% 20% Government Bonds 10% 10% 10% (a) Consider only shares A and B for this part. Compute the portfolio weights that...
The following inventory information is available for Muscat Manufacturing Corporation for the year ended December 31,...
The following inventory information is available for Muscat Manufacturing Corporation for the year ended December 31, 2018:                                                                      Beginning                 Ending             Inventories:             Raw materials                                    $68,000                 $76,000             Work in process                                   36,000                   56,000             Finished goods                                   44,000                   32,000 Total $148,000         $164,000 In addition, the following transactions occurred in 2018: 1.   Raw materials purchased on account, $280,000. 2.   Incurred factory labor, $320,000, all is direct labor. (Credit Factory Wages Payable). 3.   Incurred the following overhead costs during the year:...
The following information is available for Kingbird Corporation for the year ended December 31, 2022. Beginning...
The following information is available for Kingbird Corporation for the year ended December 31, 2022. Beginning cash balance $36,000 Accounts payable decrease 3,000 Depreciation expense 85,000 Accounts receivable increase 8,700 Inventory increase 14,100 Net income 298,500 Cash received for sale of land at book value 36,000 Sales revenue 740,500 Cash dividends paid 11,500 Income tax payable increase 4,200 Cash used to purchase building 147,500 Cash used to purchase treasury stock 38,800 Cash received from issuing bonds 203,000 Prepare a statement...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT