Oakland Corporation reported a net operating loss of $500,000 in 20X3 and elected to carry the loss forward to 20X4. Not included in the computation was a disallowed meals and entertainment expense of $20,000, tax-exempt income of $10,000, and deferred gain on an installment sale of $250,000. The corporation's current earnings and profits for 20X3 would be:A. ($500,000)B. ($720,000)C. ($510,000)D. ($260,000)

Answers

Answer 1

Answer:

The correct answer is

D. ($260,000)

good luck ❤

Related Questions

Lanning Company sells 160,000 units at $45 per unit. Variable costs are $27 per unit, and fixed costs are $975,000. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio % b. Unit contribution margin $ per unit c. Income from operations
Biochemical Corp. requires $720,000 in financing over the next three years. The firm can borrow the funds for three years at 10.20 percent interest per year. The CEO decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 8.50 percent interest in the first year, 12.90 percent interest in the second year, and 9.75 percent interest in the third year. Assume interest is paid in full at the end of each year.Required:a. Determine the total interest cost under each plan.b. Which plan is less costly? i. Short-tem variable-rate plan ii. Long-term fixed-rate plarn
Last year, you earned a nominal rate of return of 6.92 percent on your bond investments. During that time, the inflation rate was 2.74 percent. How much did your purchasing power increase (real rate)
Maria's Food Service provides meals that nonprofit organizations distribute to handicapped and elderly people. The following is her forecasted income statement for April, when she expects to produce and sell 3,000 meals. Amount Per Unit Sales revenue $ 18,000 $ 6.00 Costs of meals produced 13,500 4.50 Gross profit $ 4,500 $ 1.50 Administrative costs 2,100 0.70 Operating profit $ 2,400 $ 0.80 Fixed costs included in this income statement are $4,500 for meal production and $600 for administrative costs. Maria has received a special request from an organization sponsoring a picnic to raise funds for the Special Olympics. This organization is willing to pay $3.50 per meal for 300 meals on April 10. Maria has sufficient idle capacity to fill this special order. These meals will incur all of the variable costs of meals produced, but variable administrative costs and total fixed costs will not be affected. Required: a. What impact would accepting this special order have on operating profit? (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.)
In an efficient market, professional portfolio management can offer all of the following benefits except which of the following? A. A superior risk-return trade-off B. Low-cost diversification C. A targeted risk level D. Low-cost record keeping

Selma operates a contractor's supply store. She maintains her books using the cash method. At the end of the year, her accountant computes her accrual basis income that is used on her tax return. For 2015, Selma had cash receipts of $1.4 million, which included $200,000 collected on accounts receivable from 2014 sales. It also included the proceeds of a $100,000 bank loan. At the end of 2015, she had $250,000 in accounts receivale from customers, all from 2015 sales.Required:
a. Compute Selma's accrual basis gross receipts for 2015.
b. Selma paid cash for all of the purchases. The total amount paid for merchandise in 2020 was $1,300,000. At the end of 2019, she had merchandise on hand with a cost of $150,000. At the end of 2020, the cost of merchandise on hand was $300,000. Compute Selma's gross income (profit) from merchandise sales for 2015.

Answers

Answer:

a. $1,350,000

b. $200,000

Explanation:

The computation is shown below;

a. Accrual basis gross receipts for the year 2015 is

= Cash receipts + account receivable from year 2015 - collection in account receivable - proceeds of bank loan

= $1,400,000 + $250,000 - $200,000 - $100,000

= $1,350,000

b. Now the Gross income or profit is

As we know that

Gross profit is

= Sales - cost of goods sold

= $1,350,000 - ($1,300,000 + $150,000 - $300,000)

= $1,350,000 - $1,150,000

= $200,000

Final answer:

Selma's accrual basis gross receipts for 2015 would be $1,350,000, and her gross income (profit) from merchandise sales for the same year would be $200,000.

Explanation:

To calculate Selma's accrual basis gross receipts for 2015, we need to adjust her cash receipts, which totals up to $1.4 million. The receipts include $200,000 that was actually earned in 2014 (collected in 2015) and a $100,000 bank loan that does not count as earned revenue. So, we subtract these from the total receipts: $1,400,000 - $200,000 - $100,000 = $1,100,000. And we add the amounts receivable at the end of 2015 which is $250,000. So, Selma's accrual basis gross receipts for 2015 is $1,350,000 ($1,100,000 + $250,000).

For the second part of your question, Selma's gross income (profit) from merchandise sales for 2015 can be computed by calculating the cost of goods sold (COGS) and subtracting this from the gross receipts calculated above. Start by adding the cost of merchandise on hand at the end of 2019 ($150,000) to the purchases made in 2020 ($1,300,000). This gives us a presupposed cost of goods available for sale. We then subtract the cost of the merchandise on hand at the end of 2020 ($300,000). The COGS is, therefore, $1,150,000. Subtraction the COGS from the gross receipts gives us a gross income of $200,000 ($1,350,000 - $1,150,000).

Learn more about Accrual basis accounting here:

brainly.com/question/33772551

#SPJ3

you are going to deposit $19000 today. You will earn an annual rateof 3.3 percent for 11 years, and then earn an annual rate of 2.7 percent for 14 years. how much will you have in your account in 25 years?

Answers

Answer:

After 25 years you will have in your account $42,782.05.

Explanation:

First find the Future value of $19000 invested today at the end of 11 years.

PV = - $19,000

Pmt = $0

P/yr = 1

r = 3.30%

n = 11

FV = ?

Using a Financial calculator, the Future Value (FV) after 11 years will be $27,155.46.

Use the $27,155.46 to find future value at the end of the next 14 years at the rate of 2.70%

PV = - $27,155.46

Pmt = $0

P/yr = 1

r = 3.30%

n = 14

FV = ?

Using a Financial calculator, the Future Value (FV) after 14 years will be $42,782.05.

Thus, after 25 years you will have in your account $42,782.05.

Major Programming receives $5,000 cash in advance of providing programming services to a customer. Describe how to record the transaction to the T-accounts by completing the following sentence. Cash would be

Answers

Answer:

Cash would be debited $5,000 on the left side of the T account. Unearned programming service revenue will be credited $5,000 on the right side of T account.

Explanation:

When cash is received, cash increases and is debited by $5,000 (note Cash is an asset account, when asset and expense accounts increase they are debited. When revenue, liability, and owner's equity increase they are credited).

The revenue for this service is not earned yet so we pass the other leg of the entry to Unearned Programming Revenue. It is a revenue account so when it increases we credit. So we credit $5,000 to this account.

Final answer:

When a business receives cash in advance for services, this is treated as a liability called 'Unearned Revenue'. The Cash account would be debited (increased) by $5,000 and the Unearned Revenue account would be credited (increased) by $5,000.

Explanation:

When Major Programming receives $5,000 in advance for providing programming services, this is considered as prepayment and thus, it is recorded as a liability on the balance sheet. In terms of T-accounts, it would be recorded as follows:

Cash (an asset account) would be debited (increased) by $5,000.
Unearned Revenue (a liability account) would be credited (increased) by $5,000.

Therefore, the T-accounts would reflect an increase in both Cash and Unearned Revenue by $5,000 each, resulting from this transaction.

Learn more about Accounting here:

brainly.com/question/33068790

#SPJ3

Depreciation by Three Methods; Partial YearsPerdue Company purchased equipment on April 1 for $43,470. The equipment was expected to have a useful life of three years, or 6,480 operating hours, and a residual value of $1,350. The equipment was used for 1,200 hours during Year 1, 2,300 hours in Year 2, 1,900 hours in Year 3, and 1,080 hours in Year 4.
Required:
Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) units-of-output method, and (c) the double-declining-balance method.
Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar.

Answers

Answer:

a. Straight-line method.

Year Depreciation expense ($)

1 10,530

2 14,040

3 14,040

4 3,510

b. Units-of-production method.

Year Depreciation expense ($)

1 7,800

2 14,950

3 12,350

4 7,020

c. Double-declining balance method

Year Depreciation expense ($)

1 21,735

2 14,490

3 4,830

4 1,065

Explanation:

(a) the straight-line method

Note: See part a of the attached excel file for the depreciation schedule for Straight-line method.

In the attached excel file, the depreciation rate used for the Straight-line method is calculated as follows:

Straight line depreciation rate = 1 / Estimated useful life = 1 / 3 = 0.3333, or 33.33%

(b) units-of-output method

Note: See part b of the attached excel file for the depreciation schedule for units-of-production method.

(c) the double-declining-balance method.

Note: See part c of the attached excel file for the depreciation schedule for double-declining-balance method.

In the attached excel file, the depreciation rate used for the Double- declining-balance method is calculated as follows:

Double-declining depreciation rate = Straight line depreciation rate * 2 = (1/3) * 2 = 0.666667, or 66.6667%

Note:

Under this double-declining-balance method, the depreciation expenses for Year 4 is calculated by deducting the residual value of $1,350 from the Year 4 Beginning depreciable amount (i.e. $2,415 - $1,350 = $1,065). The residual value of $1,350 therefore represents the book value at the end of Year 4.

Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January. Sales (3,600 units)$108,000 Variable expenses 49,680 Contribution margin 58,320 Fixed expenses 44,300 Net operating income$14,020 If the company sells 4,300 units, its total contribution margin should be closest to: (Do not round intermediate calculations.)