a.
The portion of income taxes expense that is deferred to future tax
returns is credited...
a.
The portion of income taxes expense that is deferred to future tax
returns is credited to a noncurrent asset account entitled Deferred
Income Taxes
TRUE OR FALSE
b. A corporation, like a partnership, must file a corporate
income tax return and pay tax on its earnings
TRUE OR FALSE
c. For an individual taxpayer, the federal income tax rate on
ordinary income is at least as high as the rate on capital
gains
TRUE OR FALSE
D. Deferred tax...
Suppose the preceding 8 percent return is taxable rather than
tax-deferred and the taxes are paid...
Suppose the preceding 8 percent return is taxable rather than
tax-deferred and the taxes are paid annually. What will be the
after-tax value of her $12,000 investment after 5, 10, and 20
years? Do not round intermediate calculations. Round your answers
to the nearest dollar.
in 5 years: $
in 10 years: $
in 20 years: $
From the income
statement:
Depreciation expense
Interest expense
$170,000
25,000
Income tax
Net income
34,000
73,000...
From the income
statement:
Depreciation expense
Interest expense
$170,000
25,000
Income tax
Net income
34,000
73,000
From the balance sheet:
Current liabilities
$95,000
Long-term debt
560,000
Deferred income taxes
28,000
Total Liabilities
$680,000
Preferred stock
7,000
Common stock
225,000
Premium on common stock
125,000
Retained earnings
445,000
Total Stockholders’ Equity
$802,000
Total Liabilities & Stockholders’ Equity
$1,482,000
What is the Times Interest Earned ratio?
_________ /_______ = ___________
What is the Debt/Assets (Debt)
ratio? ________________ /___________ =
__________...
Analyzing and Interpreting Tax Footnote
Under Armour, Inc. reports total tax expense on its income
statement...
Analyzing and Interpreting Tax Footnote
Under Armour, Inc. reports total tax expense on its income
statement for year ended December 31, 2010 of $40,442 and cash paid
for taxes of $38,773.
The tax footnote in the company's 10-K filing, reports the
following deferred tax information.
Deferred tax assets and liabilities consisted of the following (in
thousands):
December 31 ($ thousands)
2010
2009
Deferred tax assets
State tax credits, net of federal tax impact
$ 1,750
$ --
Tax basis inventory...
Analyzing and Interpreting Tax Footnote
Under Armour, Inc.
reports total tax expense on its income statement...
Analyzing and Interpreting Tax Footnote
Under Armour, Inc.
reports total tax expense on its income statement for year ended
December 31, 2010 of $40,442 and cash paid for taxes of
$38,773.
The tax footnote in the company's 10-K filing, reports the
following deferred tax information.
Deferred tax assets and liabilities consisted of the following (in
thousands):
December 31 ($ thousands)
2010
2009
Deferred tax assets
State tax credits, net of federal tax impact
$ 1,750
$ --
Tax basis inventory...
Federal income tax allows a deduction for any state tax paid
during the year. In addition,...
Federal income tax allows a deduction for any state tax paid
during the year. In addition, the state of Alabama allows a
deduction from its state income tax for any federal tax paid during
the year. The federal corporate income tax is equivalent to a flat
rate of 34% and the Alabama state tax rate is a flat 5%.
Both the Alabama and the federal taxable income
for a corporation is $1,000,000 before either tax is paid.
Because each tax...
Aston Projected Income Statement
YE 12/31/2014
Sales 29,000,000
COGS $14,000,000
Depreciation expense 2,600,000
Operating Expense ...
Aston Projected Income Statement
YE 12/31/2014
Sales 29,000,000
COGS $14,000,000
Depreciation expense 2,600,000
Operating Expense 6,400,000
23,000,000
Income Before Tax 6,000,000
Tax Expense 3,000,000
Income After Taxes 3,000,000
ASTON CORPORATION SELECTED BALANCE SHEET INFORMATION
AT DECEMBER 31, 2012
Estimated cash balance
$5,000,000
Available-for-sale securities (at cost)
10,000,000
Fair value adjustment (1/1/12)
200,000
Estimated Fair Value at December 31st 2014
Security Cost Estimated Market
A 2,000,000 2,200,000
B 4,000,000 3,900,000
C 3,000,000 3,100,000
D ...