BUSINESS COLLEGE

Woodward Corporation reported pretax book income of $1,417,500. Included in the computation were favorable temporary differences of $300,000, unfavorable temporary differences of $106,500, and favorable permanent differences of $192,000. Assuming a tax rate of 34 percent, compute the company’s current income tax expense or benefit. (Amounts to be deducted should be indicated by a minus sign.)Pre-tax book income
Favorable temporary differences
Unfavorable temporary differences
Favorable permanent differences
Taxable income
Tax rate%

Answers

Answer 1

Answer:

Answer:

The company’s current income tax expense or benefit is $350,880.

Explanation:

Pre-tax book income $ 1417500

Favorable temporary differences -$300000

Unfavorable temporary differences $106500

Favorable permanent differences -$192000

Taxable income $1032000

Current income tax expense ($1032000 x 34%) $350880

Therefore, The company’s current income tax expense or benefit is $350,880.

Related Questions

if viewed from a flow standpoint, the stage of configuration management that has provision for variable routing to the next step, depending on outcome at this stage, is:
Supply has the potential to contribute to: ___________a. Cost management, profitability, return on assets, competitive position and corporate social policy. b. Cost management, profitability, return on assets and competitive position. c. Cost management, profitability and return on assets. d. Cost management and profitability. e. Cost management.
Swift Oil Company is considering investing in a new oil well. It is expected that the oil well will increase annual revenues by $140,000 and will increase annual expenses by $88,000 including depreciation. The oil well will cost $465,000 and will have a $10,000 salvage value at the end of its 10-year useful life. Calculate the annual rate of return. (Round answer to 2 decimal places, e.g. 12.47.)
Pendergast, Inc., has no debt outstanding, and has a total market value of $180,000. Earnings before interest and taxes (EBIT) are projected to be $23,000 if economic conditions are normal. If there is a strong expansion in the economy, then EBIT will be 20% higher. If there is a recession, then EBIT will be 30% lower. Pendergast is considering a $75,000 debt issue with a 7% interest rate. The proceeds will be used to repurchase shares of stock. There are currently 6,000 shares of stock outstanding, and the relevant tax rate is 35%. a- Calculate ROE and EPS under each of the economic scenarios before any debt is issued. b- Repeat part a, assuming that the company goes through with the capitalization. c- Calculate the percentage changes in EPS when the economy expands or enters a recession.
Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes):Income Statement Balance Sheet Sales $38,000 Assets $27,300 Debt $6,700Costs 32,600 Equity 20,600Net income $5,400 Total $27,300 Total $27,300The company has predicted a sales increase of 20 percent. Assume the company pays out half of net income in the form of a cash dividend. Costs and assets vary with sales, but debt and equity do not.a. Prepare the pro forma statements.b. Determine the external financing needed.

During the week ended May 15, 2019, Scott Fairchild worked 40 hours. His regular hourly rate is $15. Assume that all of his earnings are subject to social security tax at a rate of 6.2 percent and Medicare tax at a rate of 1.45 percent. He also has deductions of $32 for federal income tax and $22 for health insurance. What is his gross pay for the week? What is the total of his deductions for the week? What is his net pay for the week?

Answers

Answer:

Gross pay = 600

Deductions = 99.9

Net Pay = 500.1

Explanation:

Requirement A:

Gross Pay = 40 hours x $15/hour

Gross Pay = $600

Requirement B:

Security Tax ( 600 x 6.2%) = $37.2

Medicare tax ( 600 x 1.45%) = $8.7

Federal Income = $32

Health Insurance = $22

Total deductions = $99.9

Requirement C :

Net Pay = Gross pay - all deductions

Net Pay = $600 - 99.9

Net Pay = 500.1

Quantitative Problem 2: Carlysle Corporation has perpetual preferred stock outstanding that pays a constant annual dividend of $1.90 at the end of each year. If investors require an 7% return on the preferred stock, what is the price of the firm's perpetual preferred stock? Do not round intermediate calculations. Round your answer to the nearest cent. $ per share

Answers

Answer:

$27.14

Explanation:

Calculation for the price of the firm's perpetual preferred stock

Using this formula

Price of the firm perpetual preferred stock = Annual dividend / Required return

Where,

Annual dividend =$1.90

Required return=7% or 0.07

Let plug in the formula

Price of the firm perpetual preferred stock = $1.90 / 0.07

Price of the firm perpetual preferred stock=$27.14

Therefore the Price of the firm perpetual preferred stock will be $27.14

Cramer Corp. issued $20,000,000 of 5-year, 9% bonds at a market (effective) interest rate of 10%, receiving cash of $19,227,757. Interest on the bonds is payable semiannually. Required: Journalize the entry to record the first semiannual interest payment, and the amortization of the bond discount, using the interest method? Round your answers to the nearest dollar amount. Refer to the Chart of Accounts for exact wording of account titles.

Answers

Answer:

The journal entry is as follows:

Interest expense $961,388.00

Discount on issue of bond $61,388.00

Cash $900,000.00

Explanation:

In order to prepare the journal entry we have to calculate first the interest expense and the cash.

Therefore, Interest expense= ($19,227,757×10%×6/12)=$961,388.00

Cash=$20,000,000×9%×6/12= $900,000

By difference then, the discount on bond payable=$961,388-$900,000

=$61,388.

Hence, the journal entry is as follows:

Interest expense $961,388.00

Discount on issue of bond $61,388.00

Cash $900,000.00

as students, what plan can you suggest to prevent the spread of these observable practices in your community

Answers

Answer:

$\n \dashrightarrow \:\bf \red{ ( 0.2×336)× (t-30) = (0.5×4.2×10³×30)}$

A company performs $10,000 of services and issues an invoice to the customer using the accrual method what’s the correct entry to record the transaction?

Answers

Based on the accrual method, the correct entry for $10,000 worth of services would be a debit to accounts receivable for $10,000 and a credit to Sales revenue for $10,000.

Why is this the correct entry?

The company has performed a certain service for a customer and hasn't been paid for it. The customer therefore owes the company which makes them an account receivable.

The $10,000 will be considered revenue by the company so they will credit the revenue account. Accounts Receivables are assets so this account will be debited.

Find out more on accounts receivables at brainly.com/question/24871345.

Final answer:

The company should debit (increase) the Accounts Receivable account by $10,000 and credit (increase) the Service Revenue account by $10,000. This follows the accrual method of accounting, in which revenues and expenses are recorded when they are earned and incurred, respectively.

Explanation:

The correct entry to record this transaction, using the accrual method, involves two accounts: Accounts Receivable and Service Revenue. Here is the step-by-step process of recording this transaction.

Debit (increase) the Accounts Receivable account by $10,000. This step is done because the company has provided a service and is now entitled to receive money (accounts receivable) from the customer.
Credit (increase) the Service Revenue account by $10,000. The company has earned revenue due to the service that they performed. Revenue increases by credits in the accounting equation.

Learn more about Accrual Method here:

brainly.com/question/34187091

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Constant cost industries: a. use large portions of the total supply of specialized resources.
b. significantly increase the demand for inputs when expanding output, and as a result, input prices rise
c. do not use inputs in sufficient quantities that a change in industry output would affect the prices of the inputs.
d. are those in which the cost curves of individual firms shift upwards as industry output expands.

Answers

Answer:

The correct answer to the following question will be Option C.

Explanation:

Constant cost industries seem to be a sector wherein the proportion of units produced as well as manufacturing costs every unit maintains the very same irrespective including its amount of manufacturing or rise in population. Which doesn't use input data in the appropriate amount to influence the rates of that same components by a shift in industry revenue.
This doesn't even use inputs in such amounts that perhaps the costs of that same inputs will be influenced by a change in business production.

The other choices are not linked to an industry of this kind. Therefore the clarification above is correct.

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