Crockett Corporation, a calendar year C corporation, reports net income of $2,000,000,000 on its 2023 audited financial statements (including financial statement depreciation of $250,000,000). Also, for 2023, Crockett reports taxable income of $900,000,000 (including tax depreciation of $400,000,000). Assume that Crockett 's average annual AFSI for the three-year period ending December 31, 2023, is in excess of $1,000,000,000. Also assume that Crockett has no AMT foreign tax credit for 2023. Compute Crockett's 2023 corporate AMT.
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- Crockett Corporation, a calendar year C corporation, reports net income of $2,000,000,000 on its 2023 audited financial statements (including financial statement depreciation of $250,000,000). Also, for 2023, Crockett reports taxable income of $900,000,000 (including tax depreciation of $400,000,000). Assume that Crockett 's average annual AFSI for the three-year period ending December 31, 2023, is in excess of $1,000,000,000. Also assume that Crockett has no AMT foreign tax credit for 2023. Compute Crockett's 2023 corporate AMT.Crockett Corporation, a calendar year C corporation, reports net income of $2,000,000,000 on its 2023 audited financial statements (including financial statement depreciation of $250,000,000). Also, for 2023, Crockett reports taxable income of $900,000,000 (including tax depreciation of $400,000,000). Assume that Crockett's average annual AFSI for the three-year period ending December 31, 2023, is in excess of $1,000,000,000. Also assume that Crockett has no AMT foreign tax credit for 2023. Compute Crockett's 2023 corporate AMT.For the year ended December 31, 2024, Fidelity Engineering reported pretax accounting income of $1,000,000. Selected information for 2024 from Fidelity's records follows: Interest income on municipal governmental bonds $ 56,000 Depreciation claimed on the 2024 tax return in excess of depreciation on the income statement Carrying amount of depreciable assets in excess of their tax basis at year-end 80,000 136,000 Warranty expense reported on the income statement 38,000 28,000 Actual warranty expenditures in 2024 Fidelity's income tax rate is 25%. At January 1, 2024, Fidelity's records indicated balances of zero and $14,000 in its deferred tax asset and deferred tax liability accounts, respectively. Required: 1. Determine the amounts necessary to record income taxes for 2024, and prepare the appropriate journal entry. 2. What is Fidelity's 2024 net income? Complete this question by entering your answers in the tabs below. Required 1 Calculation General Journal Required 2 Determine the…
- The following information is available for Oriole Corporation for 2025. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $114,000. This difference will reverse in equal amounts of $28,500 over the years 2026-2029. Interest received on municipal bonds was $10,200. Rent collected in advance on January 1, 2025, totaled $61,800 for a 3-year period. Of this amount, $41,200 was reported as unearned at December 31, 2025, for book purposes. 2. 3. 4. The tax rates are 20% for 2025 and 17% for 2026 and subsequent years. 5. Income taxes of $154,000 are due per the tax return for 2025. 6. No deferred taxes existed at the beginning of 2025 (a) (b) (c) Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2025 and 2026. Assume taxable income was $426,000 in 2026. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not…For the year ended December 31, 2024, Fidelity Engineering reported pretax accounting income of $1,004,000. Selected information for 2024 from Fidelity’s records follows: Interest income on municipal governmental bonds $ 60,000 Depreciation claimed on the 2024 tax return in excess of depreciation on the income statement 84,000 Carrying amount of depreciable assets in excess of their tax basis at year-end 144,000 Warranty expense reported on the income statement 40,000 Actual warranty expenditures in 2024 30,000 Fidelity's income tax rate is 25%. At January 1, 2024, Fidelity's records indicated balances of zero and $15,000 in its deferred tax asset and deferred tax liability accounts, respectively. Determine the amounts necessary to record income taxes for 2024, and prepare the appropriate journal entry. What is Fidelity’s 2024 net income?Caramel Corp's 2023 income statement showed pretax accounting income of $2,500,000. To compute the federal income tax liability, the following 2023 data are provided: Income from exempt municipal bonds- $100,000 Depreciation deducted for tax purposes in excess of depreciation deducted for financial statement purposes- $200,000 Income Tax Rate- 20% The entry to record Caramel Corp's income tax expense and income tax payable for 2023 will include
- Nirvana Corporation reports pretax financial income of $260,000 for 2022. The following items cause taxable income to be different than pretax financial income. Rental income on the 2022 tax return is $65,000 greater than on the income statement. Depreciation expense on the tax return is greater than depreciation on the income statement by $40,000. Interest on an investment in a municipal bond of $6,500 is reported on the income statement. Nirvana's tax rate is 25% for all years. There are no deferred taxes at the beginning of 2022. The company expects to realize only 40% of the benefit of any deferred tax assets. The fiscal year ends December 31, 2022. Required: 1. Prepare the journal entries to record i) income tax expense, income taxes payable, and deferred income taxes for 2022, and ii) any valuation allowance needed. 2. Indicate clearly what would be reported on the income statement beginning with income before income taxes for the year ended December 31, 2022 from just…The audited financial statements for New Life Manufacturing for year-end December 31, 2022,show an accounting profit after tax of $16,500,000 after charging the following: • Depreciation $2,500,000• Tax for the year $500,000• Property Tax $1,000,000• Interest expense $15,000• Preference dividends of $40,000• Legal fees $1,110,000• Insurance of $750,000• Bad debts $40,000• Foreign Travel $20,000• Repairs and Maintenance $1,500,000• General expenses $600,000 Other Information1. Property Tax of $600,000 was paid for the property on which the company’s factory islocated; $300,000 for the office premises and $100,000 for the CEO’s home. 2. The insurance was paid for the factory and office premises. 3. Loss on disposal of fixed assets $350,000 4. Income Tax Refund of $700,000 was included as part of the entity’s income. 5. The bad debt expense includes a general provision of $10,000 and a specific provision of$30,000. 6. The company paid final ordinary dividends totaling $100,000. 7. Repairs…The audited financial statements for New Life Manufacturing for year-end December 31, 2022, show an accounting profit after tax of $16,500,000 after charging the following: • Depreciation $2,500,000• Tax for the year $500,000 • Property Tax $1,000,000 • Interest expense $15,000 • Preference dividends of $40,000 • Legal fees $1,110,000 • Insurance of $750,000 • Bad debts $40,000 • Foreign Travel $20,000 • Repairs and Maintenance $1,500,000 • General expenses $600,000Other Information 1. Property Tax of $600,000 was paid for the property on which the company’s factory is located; $300,000 for the office premises and $100,000 for the CEO’s home. 2. The insurance was paid for the factory and office premises. 3. Loss on disposal of fixed assets $350,000 4. Income Tax Refund of $700,000 was included as part of the entity’s income. 5. The bad debt expense includes a general provision of $10,000 and a specific provision of $30,000. 6. The company paid final ordinary dividends…
- XYZ is a calendar-year corporation that began business on January 1, 2023. For the year, it reported the following information in its current-year audited income statement. Notes with important tax information are provided below. Use Exhibit 16-6. XYZ corporation Income statement For current year Book Income Revenue from sales $ 40,000,000 Cost of Goods Sold (27,000,000) Gross profit $ 13,000,000 Other income: Income from investment in corporate stock 300,0001Footnote 1 Interest income 20,0002Footnote 2 Capital gains (losses) (4,000) Gain or loss from disposition of fixed assets 3,0003Footnote 3 Miscellaneous income 50,000 Gross Income $ 13,369,000 Expenses: Compensation (7,500,000)4Footnote 4 Stock option compensation (200,000)5Footnote 5 Advertising (1,350,000) Repairs and Maintenance (75,000) Rent expense (22,000) Bad Debt expense (41,000)6Footnote 6 Depreciation (1,400,000)7Footnote 7 Warranty expenses (70,000)8(70,000) to the…The audited financial statements for New Life Manufacturing for year-end December 31, 2022,show an accounting profit after tax of $16,500,000 after charging the following:• Depreciation $2,500,000`• Tax for the year $500,000• Property Tax $1,000,000• Interest expense $15,000• Preference dividends of $40,000• Legal fees $1,110,000• Insurance of $750,000• Bad debts $40,000• Foreign Travel $20,000• Repairs and Maintenance $1,500,000• General expenses $600,000Other Information1. Property Tax of $600,000 was paid for the property on which the company’s factory islocated; $300,000 for the office premises and $100,000 for the CEO’s home.2. The insurance was paid for the factory and office premises.3. Loss on disposal of fixed assets $350,0004. Income Tax Refund of $700,000 was included as part of the entity’s income.5. The bad debt expense includes a general provision of $10,000 and a specific provision of$30,000.6. The company paid final ordinary dividends totaling $100,000.7. Repairs and…The audited financial statements for New Life Manufacturing for year-end December 31, 2022,show an accounting profit after tax of $16,500,000 after charging the following:• Depreciation $2,500,000`• Tax for the year $500,000• Property Tax $1,000,000• Interest expense $15,000• Preference dividends of $40,000 • Legal fees $1,110,000• Insurance of $750,000• Bad debts $40,000• Foreign Travel $20,000• Repairs and Maintenance $1,500,000• General expenses $600,000 1.Property Tax of $600,000 was paid for the property on which the company’s factory is located; $300,000 for the office premises and $100,000 for the CEO’s home. 2. The insurance was paid for the factory and office premises. 3. Loss on disposal of fixed assets $350,0004. Income Tax Refund of $700,000 was included as part of the entity’s income.5. The bad debt expense includes a general provision of $10,000 and a specific provision of $30,000.6. The company paid final ordinary dividends totaling $100,000.7. Repairs and maintenance…