WFO Corporation has gross receipts according to the following schedule:$ 25.00 million$ 27.00 millionmillion$29.00$ 29.50 million$ 30.00 million$31.00 millionIf WFO began business as a cash-method corporation in Year 1, in which year would it have first been required to use the accrual method?Year 1Year 2Year 3Year 4Year 5Year 6Multiple ChoiceOOYear 3Year 4Year 5Year 6None of the choices is correct.

The cash method recognizes income and expenses when they are actually received or paid, while the…

Answered: WFO Corporation has gross receipts…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter12: Corporations: Organization, Capital Structure, And Operating Rules

Section: Chapter Questions

Problem 34P

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WFO Corporation has gross receipts according to the following schedule: Year 1 $22.50 million Year 2 $23.55 million Year 3 $25.25 million Year 4 $25.50 million Year 5 $26.50 million Year 6 $28.50 million If WFO began business as a cash-method corporation in Year 1, in which year would it have first been required to use the accrual method? Multiple Choice ___ Year 3. ___ Year 4. ___ Year 5. ___ Year 6. ___ None of the choices are correct.
2.WFO Corporation has gross receipts according to the following schedule: If WFO began business as a cash-method corporation in Year 1 , in which year would it have first been required to use the accrual method? Mutiple Choice Year 3Yeat4Year 5 Year 6 : None of the choices is corect
WFO Corporation has gross receipts according to the following schedule: Year 1 $21.00 million Year 2 $25.00 million Year 3 $23.00 million Year 4 $28.50 million Year 5 $29.00 million Year 6 $25.00 million If WFO began business as a cash-method corporation in Year 1, in which year would it have first been required to use the accrual method?
A Corporation is engaged in the trading business. The reported income and expenses for taxable year 2019 show: Sales P10,000,000 cost of sales 6,000,000 general business expenses 1,000,000 Interest on time deposit (gross) 100,000 Interest expense on loans payable 180,000 The net taxable income is A. 2,820,000 B. 2,853,000 C. 2,862,000 D. 2,858,000
A Corporation provided the following information for the current year: Income from continuing operation 2,000,000Loss on credit risk of financial liability at FVPL 200,000Revaluation surplus 1,500,000Loss from discontinued operation 300,000Unrealized gain on financial asset – FVPL 900,000Net “remeasurement” gain on defined benefit plan during the year 400,000 Unrealized gain on equity investment – FVOCI 1,000,000Investment gain on debt investment – FVOCI 900,000Unrealized loss on future contract designated as a cashflow hedge 200,000Translation gain on foreign operation 300,000 [Q7]: Determine the total amount of (21) other comprehensive income and (22) comprehensive income for the current year.
If a Corporation's Taxable Income Is Up to $50,000 $50,000-$75,000 $75,000-$100,000 $100,000-$335,000 $335,000-$10,000,000 $10,000,000-$15,000,000 $15,000,000-$18,333,333 Over $18,333,333 Cash Accounts receivable Inventory Other current assets Net fixed assets Total assets It Pays This Amount on the Base of the Bracket 0 $ 2012 1,500 4,000 8,500 500 17,500 32,000 7,500 13,750 22,250 113,900 3,400,000 5,150,000 6,416,667 Balance Sheet 2013 2,400 4,200 7,800 400 19,200 34,000 Dividends Net sales Cost of goods sold SG&A expenses Depreciation Plus This Percentage on the Excess over the Base (Marginal Rate) 15% 25 34 39 EBIT Interest paid Taxable income Taxes Net income Income Statement (2013) 34 35 38 35 Accounts payable Notes payable Long-term debt Common stock Retained earnings Total liabilities and equity 35,000 15,000 5,000 2,000 13,000 4,000 9,000 2,500 6,500 2,600 Average Tax Rate at Top of Bracket 2012 5,300 1,500 12,800 8,000 4,400 32,000 15.0% 18.3 22.3 34.0 34.0 34.3 35.0 35.0…
Kingbird Corporation (a calendar year C corporation) reports the following income and expenses in the current year: Income from operations $200,000 Expenses from operations 140,000 Dividends received (15% ownership) 15,000 On October 1, Kingbird Corporation made a contribution to a qualified charitable organization of $9,000 in cash (not included in any of the above items). Determine Kingbird's charitable contribution deduction for the year. a.$6,525 b.$6,750 c.$7,500 d.$9,000
A corporation has the following taxable income in its first 5 years of operations: Tax year Taxable income Tax rate Income tax paid 20X1 150,000 35% 52,500 20X2 168,000 37% 62,160 20X3 192,000 35% 67,200 20X4 240,000 40% 96,000 20X5 (420,000 ) 38% Required: Prepare the journal entry to recognize the tax recovery in 20X5, assuming the company carries losses back to the earliest year allowed. (If no entry is required for a transaction/event, select "No journal entry required" in the first accoun
A domestic corporation had the following cumulative data in a year: 1st Qtr 2nd Qtr 3rd Qtr Year Gross Income P400,000 P800,000 1,000,000 P1,200,000 Expenses and Losses 200,000 420,000 600,000 720,000 REQUIRED: Compute for the Taxable Income if: The corporation chose the itemized deductions in the return for the first quarter? The corporation did not file a return for the 1st quarter? The corporation chose the Optional Standard Deduction for the first quarter?
Question Based upon the following facts about Aqua, Inc., a calendar year S corporation, prepare the entity's Schedule M-2, fill out column. AAA, beginning of the year $9,400 Ordinary income 24,600 Tax-exempt income 3,000 Key employee life insurance proceeds received 4,900 Payroll penalty expense 2,200 Charitable contributions 3,000 Unreasonable compensation 4,000 Premiums on key employee life insurance 2,300 Distribution to shareholders 17,000 Particulars Accumulated Adjustments Account Other Adjustments Account Balance at beginning of Tax Year 9400 Ordinary Income from page 1, Line 21 24600 Other additions 0 7900 Loss from Page 1, line 21 Other reductions 2300 Combine line 1 through 5 5600 Distributions other than dividend distributions 0 Balance at end of tax year 5600
Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of $160,000 for 2019. The corporation also has $30,000 in dividends from publicly traded domestic corporations in which the ownership percentage was 45 percent. Calculate the corporation's dividends received deduction for 2019. $_____________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $135,000. Calculate the corporation's dividends received deduction for 2019. $___________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $158,000. Calculate the corporation's dividends received deduction for 2019. $_____________

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