During 2020, E Inc. reported $1,100,000 net income. Included in this amount was $120,000 of life insurance proceeds received upon the death of E’s CEO, $90,000 of interest income from investments in municipal bonds and life insurance premiums of $10,000 that E had paid for the policy on its CEO. E uses straight-line depreciation for book purposes and MACRS for tax. For 2020, E’s tax depreciation expense exceeded its financial depreciation expense by $50,000. This difference is expected to reverse in 2021. During 2020, E paid $90,000 estimated taxes and its tax rate for all years is 20%.

INSTRUCTIONS: A. Determine the current and deferred income tax expense that E will report on its 2020 income statement. B. Determine the deferred tax asset / liability that E will report on its 2020 balance sheet. C. Prepare the journal entry to record 2020 tax expense.

Headland Company reports pretax financial income of $76,500 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $15,700. 2. Rent collected on the tax return is greater than rent recognized on the income statement by $23,400. 3. Fines for pollution appear as an expense of $10,500 on the income statement. Headland’s tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020.

A)Compute taxable income and income taxes payable for 2020.

B)Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020.

c)Prepare the income tax expense section of the income statement for 2020, beginning with the line “Income before income taxes.”

D)Compute the effective income tax rate for 2020

company accounting question:

Violet Ltd owns all the share capital of Indigo Ltd. The following transactions are independent:

1. Indigo Ltd gives $55 000 as an interest-free loan to Violet Ltd on 1 July 2019. Violet Ltd made a $20 000 repayment by 30 June 2020.
2. Indigo Ltd rented a spare warehouse to Violet Ltd starting from 1 July 2019 for 1 year. The total charge for the rental was $3 500, and Violet Ltd paid half of this amount to Indigo Ltd on 1 January 2020 and the rest on 1 July 2020.
3. During March 2020, Indigo Ltd declared a $5000 dividend. The dividend was paid in August 2020.

Required

In relation to the above intragroup transactions:

1.      Prepare adjusting journal entries for the consolidation worksheet at 30 June 2020.

2.     Explain in detail why you made each adjusting journal entry.

E6-17 (LO 5)  Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2020, the company incurred the following costs.

Siren Company sells the fishing lures for $25. During 2020, the company sold 80,000 lures and produced 90,000 lures.

Instructions:

a.   Assuming the company uses variable costing, calculate Siren's manufacturing cost per unit for 2020.

b. Prepare a variable costing income statement for 2020.

c. Assuming the company uses absorption costing, calculate Siren's manufacturing cost per unit for 2020.

d. Prepare an absorption costing income statement for 2020.

Question 10

Sheridan Company provides the following information about its defined benefit pension plan for the year 2020.

1. Prepare a pension worksheet inserting January 1, 2020, balances, showing December 31, 2020. (Enter all amounts as positive.)

2. Prepare the journal entry recording pension expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Metals Corporation reports pretax financial income of $260,000 for 2020. The following items cause taxable income to be different than pretax financial income: 1. Rental income on the income statement is less than rent collected on the tax return by $65,000. 2. Depreciation on the tax return is greater than depreciation on the income statement by $40,000. 3. Interest on an investment in a municipal bond of $6,500 on the income statement. Metal’s tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020.

Compute taxable income and income taxes payable for 2020. (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (c) Prepare the income tax expense section of the income statement for 2020, beginning with the line “Income before income taxes.” (d) Compute the effective income tax rate for 2020.

On January 1, 2020, Sweet Company issued 10-year, $2,020,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 16 shares of Sweet common stock. Sweet’s net income in 2020 was $475,300, and its tax rate was 20%. The company had 97,000 shares of common stock outstanding throughout 2020. None of the bonds were converted in 2020.

(a) Compute diluted earnings per share for 2020. (Round answer to 2 decimal places, e.g. $2.55.)

(b) Compute diluted earnings per share for 2020, assuming the same facts as above, except that $970,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Sweet common stock. (Round answer to 2 decimal places, e.g. $2.55.)

The following facts relate to Oriole Corporation.

(b)

Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Mr.Ahmed made a written contract with Mr.Hamood, on March 2 nd 2020, promising to
sell 10 computers, for a total price of 2000 (Omani Rials), by 1 st April, 2020. It is also
agreed that if computers are not supplied till 1 st April, 2020, Mr.Ahmed should pay
damages of 500(Omani Rials) to Mr.Hamood.
On 20 th March lockdown declared by government, all businesses are closed till 1 st May
2020, including selling and buying of computers. Due to which Mr.Ahmed could not able
to supply computers on promised date of 1 st April, 2020.

Can Hamood claim for damages for not supplying computers by 1 st April, 2020, on
the ground of breach of contract? (Write yes or no)

Can Ahmed take la pea of discharge of contract Explain?

Explain which type of damages are they?

Explain about specific performance of contract. Can Hamood claim for the relief of
specific performance?