Oriole Company reported the following on its income statement: Income before income taxes $730000 Income tax...

Oriole Company reported the following on its income statement:

Income before income taxes	$730000
Income tax expense	270000
Net income	$460000

An analysis of the income statement revealed that interest expense was $100000. Oriole Company's times interest earned was

Expert Solution

Income before interest and taxes(balance)(730,000+100,000)	830,000
Less:interest expense	100,000
Income before income taxes	730,000

TIE=Income before interest and taxes/Income before income taxes

=830,000/100,000

=8.3

ekkarill92 answered 3 years ago

AFS company reported the following information: Financial Statement Tax return income before Depreciation and income tax...

AFS company reported the following information: Financial Statement Tax return income before Depreciation and income tax 200,000 200,000 Depreciation Expense 45,000 72,000 The tax rate is 35% 1. Income tax for the financial statement is: 2. Income tax on the tax return is: 3. Which does this situation create, a deferred tax asset, or a deferred tax liability? 4. What is the amount of the deferred item? Please follow the answer and calculation processes. Thank you.

Flounder Company, which is subject to a 40% income tax rate, projected its income before taxes...

Flounder Company, which is subject to a 40% income tax rate, projected its income before taxes for next year as shown here: Sales (272,000 units) $13,600,000 Cost of sales Variable costs 3,400,000 Fixed costs 5,100,000 Pretax earning $5,100,000 1) If Flounder wants $7,650,000 in pretax earning, what is the required level of sales, in dollars? 2) If Flounder’s net assets are $61,200,000, what amount of revenue must be achieved for Flounder to earn a 10% after-tax return on assets? 3)...

Packer Co.’s 2018 income statement reported $130,000 in income before provisions for income taxes. To compute...

Packer Co.’s 2018 income statement reported $130,000 in income before provisions for income taxes. To compute the provision for federal income taxes, the following 2018 data are provided: Rent received in advance $ 22,000 Income from exempt municipal bonds $ 17,000 Depreciation deducted for income tax purposes $ 18,000 Depreciation deducted for financial reporting $ 10,000 If the alternative minimum tax provisions are ignored, what amount should Packer report as taxable income? Multiple Choice 130,000 117,000 125,000 127,000

Park Co.’s 2018 income statement reported $102,605 in income before provisions for income taxes. To compute...

Park Co.’s 2018 income statement reported $102,605 in income before provisions for income taxes. To compute the provision for federal income taxes, the following 2018 data are provided: Installment sales to be collected in future years $6,728 Income from exempt municipal bonds $16,379 Depreciation deducted for financial reporting purposes $13,667 Depreciation deducted for income tax purposes $28,361 If the alternative minimum tax provisions are ignored, what amount should Park report as taxable income?

PoorPerf Co. (referred to as the "company") reported (under GAAP) income before income taxes in the...

PoorPerf Co. (referred to as the "company") reported (under GAAP) income before income taxes in the amount of $100 (I'm making the math simple, you can add thousands or millions if you prefer to work with big numbers). You've been assigned to prepare the journal entry recording income tax expense and related assets and liabilities for the year ending 12/31/2017. You receive the following additional information, which may or may not be relevant to your task: The CFO drives a...

Magna Corp. reported earnings before income taxes of $2,700,000 in 20X9 when the tax rate was...

Magna Corp. reported earnings before income taxes of $2,700,000 in 20X9 when the tax rate was 40%. Additional information for the company for 20X9 is as follows: a. Golf club dues, $32,000 b. Depreciation expense, $63,000 c. Development costs incurred during year; capitalized for accounting purposes, $160,000 d. Warranty costs accrued during year, $36,000 e. Interest and penalty for late payment of payroll taxes, $40,000 f. CCA, $300,000 g. Amortization of capitalized development costs, $16,000 h. Costs incurred during year...

Heiden Company reported the following net income before taxes and depreciation for the years indicated. 2016:...

Heiden Company reported the following net income before taxes and depreciation for the years indicated. 2016: $80,000 2017: $100,000 2018: $75,000 The Company purchased assets costing $90,000 on January 1, 2016. The assets have a three-year useful life and no salvage value. For tax purposes the Company used an acceptable accelerated depreciation method that resulted in depreciation expense of $45,000; $30,000; and$15,000 for the three years respectively. For financial reporting purposes the straight-linemethodwas used. A 30% tax rate was in...

Ana Foods reported $300,000 pretax accounting income in income before taxes for 2013, its first year...

Ana Foods reported $300,000 pretax accounting income in income before taxes for 2013, its first year of operations. Included in the income statement was an installment sale of property in the amount of $70,000. However, for tax purposes, Ana reported the income in the year the cash was collected. Cash collected on the installment sale was $30,000 in 2014 and $40,000 in 2015. The company also had $20,000 interest from investment in municipal bonds. The income tax rate is 35%....

In its proposed 2017 income statement, Whispering Winds Corp. reports income before income taxes $476,000, income...

In its proposed 2017 income statement, Whispering Winds Corp. reports income before income taxes $476,000, income taxes $76,160 (not including unusual items), loss on operation of discontinued music division $62,300, gain on disposal of discontinued music division $43,000, and unrealized loss on available-for-sale securities $141,000. The income tax rate is 16%. Prepare a correct statement of comprehensive income, beginning with income before income taxes.

Zekany Corporation would have had identical income before taxes on both its income tax returns and...

Zekany Corporation would have had identical income before taxes on both its income tax returns and income statements for the years 2018 through 2021 except for differences in depreciation on an operational asset. The asset is purchased in 2018 at a cost of $120,000 and is depreciated fully for income tax purposes in 2018. The operational asset has a four-year life and no residual value. The straight-line method is used for financial reporting purposes. Pretax accounting income amounts for each...

Question