Michael’s Corporation Data for 2020
1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $75,000. This
difference will reverse in equal amounts of $25,000 over the years 201–202 .
2. Interest received on municipal bonds was $24,000.
3. Rent collected in advance on January 1, 2020, totaled $45,000 for a 3- year period. Of this amount, $30,000 was reported as unearned at December 31, 2020, for book purposes.
4. The tax rates are 30% for 2020 and 20% for 2021 and subsequent years.
5. Income taxes of $270,000 are due per the tax return for 2020.
6. No deferred taxes existed at the beginning of 2020.
Required
(a) Compute taxable income for 2020.
(b) Compute pretax financial income for 2020.
(c) Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2020 and
2021. Assume taxable income was $760,000 in 2021.
(d) Prepare the income tax expense section of the income statement for 20 , beginning with “Income
before income taxes.”
In: Accounting
In which case did the taxpayer derive assessable income during the year ended 30 June 2020?
| a. |
Fridge World sells refrigerators. On 30 June 2020, it sells a refrigerator for $2,000. The customer enters into a lay-by arrangement by paying an initial deposit of $400. For the next four weeks, the customer continues to make $400 payments until the final $200 instalment is paid on 2 August 2020; |
|
| b. |
Learn to Dance is a dancing school. On 30 June 2020, it receives a non-refundable upfront payment of $150 from a customer for 3 dancing lessons (ie. $50 each). The three dance lessons are conducted on 6 July, 13 July and 20 July 2020; |
|
| c. |
Malik received a $10,000 bonus from his employer on 12 July 2020 in appreciation of his hard work for the year ended 30 June 2020; |
|
| d. |
Julie, a chartered accountant practicing as a sole practitioner, invoiced some clients $12,000 on 30 June 2020 for services provided up to that date. Julie received this amount in the mail on 10 July 2020. |
In: Accounting
Write a paper discussing on Watson's Machine learning is about. Discuss Business Analytics and Management Science. Discuss how the film applies to Business Analytics and how the technology can be used. What industries could be effected by the technology.
In: Computer Science
What is meant by the term "creative destruction"?
How does the emergence of MP3 or iPod technology relate to this idea.
What other products or technology would also relate to this concept?
Why do we learn about this in microeconomics?
In: Economics
Licensing propriety technology to foreign competitors is the best way to give up a firm's competitive advantage. (a) Discuss the above statement (b) What alternative entry form might you consider if you are a technology company? Why?
In: Finance
In: Operations Management
Describe the technology that Pizza Hut is using to take and track customer orders.
Describe the technology that Pizza Hut is using to handle customer requests (delivery and pick up) when local restaurants are too busy to take orders.
In: Operations Management
Give two examples of how technology is creating employer-employee rights and policy issues. Then suggest some possible actions that may be needed to deal with the issues. Are there other conflicts being created in today's society that are not technology related?
In: Operations Management
At January 1, 2020, Splish Company’s outstanding shares included the following.
259,000 shares of $50 par value, 7% cumulative preferred stock
974,000 shares of $1 par value common stock
Net income for 2020 was $2,570,000. No cash dividends were declared or paid during 2020. On February 15, 2021, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears prior to 2020.
On April 1, 2020, 454,000 shares of common stock were sold for $10 per share, and on October 1, 2020, 112,000 shares of common stock were purchased for $21 per share and held as treasury stock.
Compute earnings per share for 2020. Assume that financial statements for 2020 were issued in March 2021. (Round answer to 2 decimal places, e.g. $2.55.)
Earnings per share $
In: Accounting
In: Accounting