Question

Prepare an M-1 reconciliation (what is taxable income?) for JJB Corporation using the following data: Net...

Prepare an M-1 reconciliation (what is taxable income?) for JJB Corporation using the following data:

Net income per books (after tax) 100,000
Federal income tax per books 30,000
Excess of capital losses over capital gains 15,000
Dividend income (Polk owns 1% of the paying corporation) 20,000
Nondeductible penalties 7,000
Marketing expense 16,000
Meals and Entertainment expense (total amount) 24,000
Tax-exempt interest income (private activity bond) 11,000
Excess of tax (MACRS) deprecation over book (GAAP) depreciation 35,000
Domestic Production Activities Deduction 25,000
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Ans.

CALCULATION OF TAXABLE INCOME OF JJB CORPORATION

Net income per books (after tax) $100,000
Add:- Item that decreased net income but did note affect taxable income
Federal income tax per books $30,000
Excess of capital losses over capital gains $15,000
Nondeductible penalties $7,000
Marketing Expenses $16,000
Meals and Entertainment expenses $24,000
Domestic Production Activities Deduction $25,000
Subtotal $217,000
Less:- Items that increased net income per books but did not affect taxable income
Dividend Income -$20,000
Tax-exempt intrest income (private activity bond) -$11,000
Excess of tax (MACRS) Deprication over book (GAAP) deprication -$35,000
Taxable Income $151,000
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Prepare an M-1 reconciliation (what is taxable income?) for JJB Corporation using the following data: Net...
Prepare an M-1 reconciliation (what is taxable income?) for JJB Corporation using the following data: Net income per books (after tax) 100,000 Federal income tax per books 30,000 Excess of capital losses over capital gains 15,000 Dividend income (Polk owns 1% of the paying corporation) 20,000 Nondeductible penalties 7,000 Marketing expense 16,000 Meals expense (total amount) 24,000 Tax-exempt interest income (private activity bond) 11,000 Excess of tax (MACRS) deprecation over book (GAAP) depreciation 35,000 Domestic Production Activities Deduction 25,000
Cramer Corporation, a calendar year, accrual basis corporation, reported $1.45 million of net income after tax...
Cramer Corporation, a calendar year, accrual basis corporation, reported $1.45 million of net income after tax on its 2018 financial statements prepared in accordance with GAAP. The corporation’s books and records reveal the following information: Cramer's federal income tax expense per books was $209,000. Cramer's book income included $19,000 of dividends received from a domestic corporation in which Cramer owns a 25 percent stock interest, and $8,500 of dividends from a domestic corporation in which Cramer owns a 5 percent...
Problem 11-7 (Algorithmic) Schedule M-1 (LO 11.4) The Loquat Corporation has book net income of $163,000...
Problem 11-7 (Algorithmic) Schedule M-1 (LO 11.4) The Loquat Corporation has book net income of $163,000 for the current year. Included in this figure are the following items, which are reported on the corporation's Schedule M-1, Reconciliation of Income (Loss) per Books with Income per Return. • Federal income tax expense $24,450 • Depreciation deducted on the books which is not deductible for tax purposes 32,600 • Deduction for 50 percent of meals and entertainment expense which is not allowed...
The Loquat Corporation has book net income of $91,000 for the current year. Included in this...
The Loquat Corporation has book net income of $91,000 for the current year. Included in this figure are the following items, which are reported on the corporation's Schedule M-1, Reconciliation of Income (Loss) per Books with Income per Return. • Federal income tax expense $13,650 • Depreciation deducted on the books which is not deductible for tax purposes 18,200 • Deduction for 50 percent of meals and entertainment expense which is not allowed for tax purposes 8,190 • Deduction for...
The Loquat Corporation has book net income of $139,600 for the current year. included in this...
The Loquat Corporation has book net income of $139,600 for the current year. included in this figure are the following items which are reported on the corporation schedule M1 reconciliation of income loss for goods within camper return. federal income tax expense $20,940 depreciation deduction on the books which is not deductible for tax purposes 27 920 deduction for 50% of meals and entertainment expense which is not allowed for tax purposes 12,564 deduction for a tax penalty not allow...
The Loquat Corporation has book net income of $217,000 for the current year. Included in this...
The Loquat Corporation has book net income of $217,000 for the current year. Included in this figure are the following items, which are reported on the corporation's Schedule M-1, Reconciliation of Income (Loss) per Books with Income per Return. • Federal income tax expense $32,550 • Depreciation deducted on the books which is not deductible for tax purposes 43,400 • Deduction for 50 percent of meals expense which is not allowed for tax purposes 19,530 • Deduction for a tax...
Determine taxable income in each of the following instances. Assume that the corporation is a C...
Determine taxable income in each of the following instances. Assume that the corporation is a C corporation and that book income is before any income tax expense. Book income of $61,000 including capital gains of $6,000, a charitable contribution of $1,600, and meals and entertainment expenses of $8,500. Book income of $103,000 including capital losses of $7,000, a charitable contribution of $17,500, and meals and entertainment expenses of $2,000. Book income of $81,500 including municipal bond interest of $1,500, a...
Kristi Corporation, a calendar-year, accrual-basis corporation had net income per the books of $850,000 for the...
Kristi Corporation, a calendar-year, accrual-basis corporation had net income per the books of $850,000 for the current year. Included in this number were the following items:                         Federal income taxes                                                    $200,000                         Interest income on U.S. treasury bonds                          26,000                         Interest income on municipal bonds                                  22,000                         Charitable contribution in excess of 10% limitation                 4,000                         Tax penalty assessed by IRS                                                         1,000                         Capital loss on sale of land (no other capital asset sales)       3,000                         Business entertainment expense                                             20,000 MACRS depreciation in excess of book depreciation is $5,000....
A. Income Taxes The following differences enter into the reconciliation of financial income and taxable income...
A. Income Taxes The following differences enter into the reconciliation of financial income and taxable income of Abbott Company for the year ended December 31, 2017, its first year of operations. The enacted income tax rate is 30% for all years. Pretax financial income $800,000 Excess tax depreciation (480,000) Unearned rent revenue deferred on the books   60,000 but appropriately recognized in taxable income Taxable income $380,000 1. Excess tax depreciation will reverse equally over a four-year period, 2018-2021. 2. Rent...
The following differences apply to the reconciliation of accounting income and taxable income of Gatsby Inc....
The following differences apply to the reconciliation of accounting income and taxable income of Gatsby Inc. for calendar 2018, its first year of operations. The enacted income tax rate is 30% for all years. Accounting income $440,000 Differences: Excess CCA (220,000) Lawsuit accrual 30,000 Unearned rent revenue deferred on the books but correctly included in taxable income 20,000 Dividend income from Canadian corporations (12,000) Taxable income $258,000 1. Excess CCA will reverse equally over a four-year period, 2019–2022. 2. It...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT