BUSINESS COLLEGE

Corporation W, which uses the accrual method of accounting, had earnings and profits of $95,000 on December 31, Year 1. Based on the following information, compute earnings and profits as of December 31, Year 2: Taxable income per return $185,000
Contributions in excess of 10% limitation 1,500
Interest paid for tax-exempt bonds 1,000
Tax-exempt interest received 3,000
Federal income taxes 55,400
MACRS depreciation in excess of straight-line alternative depreciation system 1,500

a. $226,600
b. 220,600
c. $282,000
d. $228,600

Answers

Answer 1

Answer:

a. $226,600

Explanation:

Profit = $ (95000+185000-1500

- 1,000 + 3,000 - 55,400 + 1,500 )= $226000

items added back to profit are allowed deductions while items deducted are disallowed deductions

Depreciation was added back to profit because method used was in excess of straight line method and so does not reflect true depreciation

Related Questions

Crispy Fried Chicken bought equipment on January 2, 2018, for $ 33,000. The equipment was expected to remain in service for four years and to operate for 6,750 hours. At the end of the equipment's useful life, Crispy estimates that its residual value will be $ 6,000. The equipment operated for 675 hours the first year, 2,025 hours the second year, 2,700 hours the third year, and 1,350 hours the fourth year.Requirements1. Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods: straight-line, units-of-production, and double-declining-balance. Show your computations. Note: Three depreciation schedules must be prepared.2. Which method tracks the wear and tear on the equipment most closely?
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1. Early in 2020, Cullumber Equipment Company sold 500 Rollomatics at $6,300 each. During 2020, Cullumber spent $20,000 servicing the 2-year assurance warranties that accompany the Rollomatic. All applicable transactions are on a cash basis. Prepare 2020 entries for Cullumber. Assume that Cullumber estimates the total cost of servicing the warranties in the second year will be $34,000.Date Account Titles and Explanation Debit CreditAt Sale During 2017 Dec. 31, 2017At SaleDuring 2017Dec. 31, 2017At SaleDuring 2017Dec. 31, 2017 2. Prepare 2017 entries for Coronado assuming that the warranties are not an integral part of the sale (a service-type warranty). Assume that of the sales total, $51,000 relates to sales of warranty contracts. Coronado estimates the total cost of servicing the warranties will be $50,000 for 2 years. Estimate revenues to be recognized on a straight-line basis.Date Account Titles and Explanation Debit CreditAt Sale During 2017 Dec. 31, 2017At SaleDuring 2017Dec. 31, 2017At SaleDuring 2017Dec. 31, 2017
As a contemporary manager, your employees will be motivated to provide you with important feedback if:A. you provide closed-end surveys on a monthly basis.B. you prepare daily, company-wide passive voicemail messages.C you institute a respectful rank and file politeness plan, where middle and higherlevel managers are addressed as "Mr.", "Ms", or "Dr.".D. you solicit open-ended responses from your employees.
A university spent $1.3 million to install solar panels atop a parking garage. These panels will have a capacity of 200 kilowatts (kW) and have a life expectancy of 20 years. Suppose that the discount rate is 30%, that electricity can be purchased at $0.30 per kilowatt-hour (kWh), and that the marginal cost of electricity production using the solar panels is zero.Hint: It may be easier to think of the present value of operating the solar panels for 1 hour per year first. Approximately how many hours per year will the solar panels need to operate to enable this project to break even?

On July 23 of the current year, Dakota Mining Co. pays $6,165,600 for land estimated to contain 8,808,000 tons of recoverable ore. It installs machinery costing $1,849,680 that has a 10-year life and no salvage value and is capable of mining the ore deposit in eight years. The machinery is paid for on July 25, seven days before mining operations begin. The company removes and sells 488,500 tons of ore during its first five months of operations ending on December 31. Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined.Required:
Prepare entries to record the following:_______.
(a)To record the purchase of the land.
(b)To record the cost and installation of machinery.
(c) To record the first five months' depletion assuming the land has a net salvage value of zero after the ore is mined.
(d)To record the first five months' depreciation on the machinery.

Answers

Answer:

a) July 23, 202x, purchase of land parcel (for mining purposes)

Dr Land and ore deposits 6,165,600

Cr Cash 6,165,600

b) July 25, 202x, purchase and installation of mining machinery

Dr Machinery 1,849,680

Cr Cash 1,849,680

c) December 31, 202x, depleting expense of ore deposits

Dr Depleting expense 341,917

Cr Accumulated depletion: land and ore deposits 341,917

depleting expense = ($6,165,600 / 8,808,000 tons) x 488,500 tons = $341,917

d) December 31, 202x, depreciation expense of machinery

Dr Depreciation expense 102,585

Cr Accumulated depreciation: machinery 102,585

depreciation expense = ($1,849,680 / 8,808,000 tons) x 488,500 tons = $102,585

Alejandro is the type of manager who completely focuses on efficiency, and he assumes workers are rational. Alejandro is probably applying the ________ viewpoint.

Answers

Alejandro is probably applying the quantitative viewpoint.

What is quantitative viewpoint?

The quantitative viewpoint is the one that lay emphasis on efficiency. This viewpoint means that the questions we form can be best answered with some analytical thinking.

There are different types of managers, however, quantitative viewpoint assumes workers are rational hence focuses on efficiency of workers.

Hence, Alejandro is probably applying the quantitativeviewpoint, which is the type of manager who completely focuses on efficiency, and assumes workers are rational.

Learn more about types of manager here : brainly.com/question/25644417

Final answer:

Alejandro is likely applying the Taylorism viewpoint in management, which focuses on work efficiency and views workers as rational beings. This theory, developed by Fredrick Taylor, is also known as scientific management and encourages task standardization to improve productivity.

Explanation:

Alejandro, who focuses on efficiency and assumes workers are rational, is likely applying the Taylorism viewpoint. This management theory, developed by Fredrick Taylor, is also known as scientific management or "stop-watch management."

Taylorism emphasizes the standardization of work tasks to improve efficiency, often at the loss of human interaction and collaborative work environments. Taylor's system sought to improve factory efficiency by reducing tasks to short, repetitive actions.

Therefore, managers who completely focus on efficiency, as Alejandro does, typically follow Taylor's principles of scientific management. This management style views workers as rational beings who are fundamentally driven by the need for efficiency and productivity in their roles.

Learn more about Taylorism here:

brainly.com/question/33808145

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Tanya is the night supervisor for a data processing company. She supervises 26 workers who perform routine jobs that require minimal training. Which of the following statements would indicate that Tanya is following the transformational model of leadership?Multiple Choice:
O Tanya wants to develop a partnership with his team illustrated by reciprocal influence, mutual trust, respect and liking, and a sense of common fates.
O Tanya seeks to motivate employees to pursue organizational goals above their own self-interests.
O Tanya likes to provide the guidance and support needed by employees and ties meaningful rewards to completion of objectives.

Answers

Answer:

The correct answer is: All of the above.

Explanation:

Transformational leadership is the type of leadership that provokes change in individuals and the environment they interact with. It creates positive change in individuals to make them good leaders in the long run. Leaders guide their followers through inspiration, commitment, influence, and consideration.

A monopolistically competitive firm usually charges more than a perfectly competitive firm because:_____.a. it is part of a group of firms that has formally agreed to control the price and the output of a product.
b. its primary goal is to reap monopoly profits by replacing competition with cooperation.
c. producing homogenous output is more expensive than producing differentiated output.
d. producing differentiated output is more expensive than producing homogenous output.
e. it has a monopoly, but potential entrants exist in the form of contestable markets.

Answers

Answer:

a. it is part of a group of firms that has formally agreed to control the price and the output of a product.

Explanation:

A monopolistic competitive firm ensures that, the price of goods and the output of the products produced by them is controlled. This helps them to dictate the market in which they find themselves in.

If a corporation repurchases its debt, which of the following statements are TRUE? I The corporation's capitalization will increase
II The corporation's capitalization will decrease
III The market value of the common stock will increase
IV The market value of the common stock will decrease

Answers

Answer:

II and III

Explanation:

The best answer is ii and iii. If a corporation repurchases its debt, then its capitalization will decrease. Corporations repurchase debt to refinance at smaller interest rates so as to To increase the market value of the corporation's common stock. If corporation has less debt, the common stock would have more value and to reduce the corporation's earnings fluctuation's due to cyclical conditions. Corporate sales fall because of cyclical conditions, but fixed interest charges do not. This causes earnings for common shareholders to reduce in period of falling sales. To reduce this possibility, a corporation can repurchase its debt.

Suppose you buy lunch for $15.40 that includes a 8% sales tax. How much did the restaurant charge you for the lunch (excluding any tax) and how much does the restaurant owe for sales tax?a. $16.10 for lunch and $1.19 for sales tax.b. $14.81 for lunch and $1.29 for sales tax.c. $16.10 for lunch and $1.29 for sales tax.d. $14.91 for lunch and $1.19 for sales tax.