Business, 16.04.2020 01:24 rowellr3

You are the new accounting manager at the Barry Transport Company. Your CFO has asked you to provide input on the company's income tax position based on the following: 1.Pretax accounting income was $68 million and taxable income was $16 million for the year ended December 31, 2021. 2.The difference was due to three items: a. Tax depreciation exceeds book depreciation by $50 million in 2021 for the business complex acquired that year. This amount is scheduled to be $70 million in 2022 and to reverse as ($60 million) and ($60 million) in 2023 and 2024, respectively. b. Insurance of $10 million was paid in 2021 for 2022 coverage. c. A $8 million loss contingency was accrued in 2021, to be paid in 2023. d. No temporary differences existed at the beginning of 2021. The tax rate is 25%.

Answers: 2

Show answers

Other questions on the subject: Business

Business, 21.06.2019 20:20, bisolad64

Accounts receivable arising from sales to customers amounted to $40,000 and $55,000 at the beginning and end of the year, respectively. income reported on the income statement for the year was $180,000. exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

Answers: 2

continue

Business, 22.06.2019 02:30, kseniyayakimno

Luc do purchased stocks for $6,000. he paid $4,000 in cash and borrowed $2,000 from the brokerage firm. he bought 100 shares at $60.00 per share ($6,000 total). the loan has an annual interest rate of 8 percent. six months later, luc do sold the stock for $65 per share. he paid a commission of $120 and repaid the loan. his net profit was how much? pls

Answers: 3

continue

Business, 22.06.2019 09:50, niele123

The returns on the common stock of maynard cosmetic specialties are quite cyclical. in a boom economy, the stock is expected to return 22 percent in comparison to 9 percent in a normal economy and a negative 14 percent in a recessionary period. the probability of a recession is 35 percent while the probability of a boom is 10 percent. what is the standard deviation of the returns on this stock?

Answers: 2

continue

Business, 22.06.2019 10:50, jadeafrias

You are evaluating two different silicon wafer milling machines. the techron i costs $285,000, has a three-year life, and has pretax operating costs of $78,000 per year. the techron ii costs $495,000, has a five-year life, and has pretax operating costs of $45,000 per year. for both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $55,000. if your tax rate is 24 percent and your discount rate is 11 percent, compute the eac for both machines.

Answers: 3

continue

You know the right answer?

You are the new accounting manager at the Barry Transport Company. Your CFO has asked you to provide...