Question

Cranberry Corporation has $3,240,000 of current year taxable income. If the current year is a calendar...

Cranberry Corporation has $3,240,000 of current year taxable income.

  1. If the current year is a calendar year ending on December 31, 2017, calculate Cranberry's regular income tax liability.
  2. If the current year is a calendar year ending on December 31, 2018, calculate Cranberry’s regular income tax liability.
  3. If the current year is a fiscal year ending on April 30, 2018, calculate Cranberry's regular income tax liability. (Do not round intermediate calculations.)

please don't guess, provide correct answer.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Tax rate Taxable amount Tax
Current Year Dec 31 2017 35%               32,40,000 11,34,000
Current Year Dec 31 2018 21%               32,40,000     6,80,400 Tax rate changed to 21% from Tax year beginning from Jan 1 2018
Fiscal Year April 30 2018 35%               32,40,000 11,34,000
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
A) In 2017, Larkspur Corporation had pretax financial income of $164,000 and taxable income of $131,000....
A) In 2017, Larkspur Corporation had pretax financial income of $164,000 and taxable income of $131,000. The difference is due to the use of different depreciation methods for tax and accounting purposes. The effective tax rate is 40%. Compute the amount to be reported as income taxes payable at December 31, 2017. B) Buffalo Corporation began operations in 2017 and reported pretax financial income of $212,000 for the year. Buffalo’s tax depreciation exceeded its book depreciation by $33,000. Buffalo’s tax...
AMP Corporation (calendar-year-end) has 2018 taxable income of $1,000,000 for purposes of computing the §179 expense....
AMP Corporation (calendar-year-end) has 2018 taxable income of $1,000,000 for purposes of computing the §179 expense. During 2018, AMP acquired the following assets: Placed in Asset Service Basis Machinery September 12 $ 1,550,000 Computer equipment February 10 365,000 Office building April 2 480,000 Total $ 2,395,000 a. What is the maximum amount of §179 expense AMP may deduct for 2018? b. What is the maximum total depreciation, including §179 expense, that AMP may deduct in 2018 on the assets it...
Acrobatica, Inc., is a C corporation that files its return using a fiscal year. For the...
Acrobatica, Inc., is a C corporation that files its return using a fiscal year. For the return for the fiscal year ending on April 30, 2018, what corporate tax rate(s) applies to Acrobatica’s income? A: The progressive tax rates, including a potential 3% or 5% surtax, in effect prior to the passage of the TCJA. Acrobatica will transition to the flat rate of 21% with the first return it files for a fiscal year beginning on or after January 1,...
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...
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...
Assume that TDW Corporation (calendar-year-end) has 2017 taxable income of $650,000 for purposes of computing the...
Assume that TDW Corporation (calendar-year-end) has 2017 taxable income of $650,000 for purposes of computing the §179 expense and acquired the following assets during 2017: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Placed in Asset Service Basis Machinery October 12 $ 1,270,000 Computer equipment February 10 263,000 Furniture April 2 880,000 Total $ 2,413,000 a. What is the maximum amount of §179 expense TDW may deduct for 2017? b. What is the maximum total...
For the current year, Maple Corporation, a C corporation, reports taxable income of $397,000 before paying...
For the current year, Maple Corporation, a C corporation, reports taxable income of $397,000 before paying salary to its sole shareholder, Diane. Diane’s marginal tax rate on ordinary income is 35.9 percent (including the additional Medicare tax) and 18.8 percent on dividend income (including the 3.8% net investment income tax). If Maple pays Diane a salary of $222,000 but the IRS determines that Diane’s salary in excess of $175,000 is unreasonable compensation, what is the amount of the overall tax...
Corning-Howell reported taxable income in 2018 of $290 million. At December 31, 2018, the reported amount...
Corning-Howell reported taxable income in 2018 of $290 million. At December 31, 2018, the reported amount of some assets and liabilities in the financial statements differed from their tax bases as indicated below: Carrying Amount Tax Basis Assets Current Net accounts receivable $ 17 million $ 24 million Prepaid insurance 59 million 0 Prepaid advertising 7 million 0 Noncurrent Investments at fair value with changes in OCI* 4 million 0 Buildings and equipment (net) 560 million 460 million Liabilities Current...
Assume that TDW Corporation (calendar year end) has 2019 taxable income of $650,000 before the §179...
Assume that TDW Corporation (calendar year end) has 2019 taxable income of $650,000 before the §179 expense, acquired the following assets during 2019: Asset Placed in Service Basis Machinery October 12 $2,260,000 Computer Equipment February 10 263,000 Furniture April 2 880,000 Total $3,403,000 What is the maximum amount of §179 expense TDW may deduct for 2019? The answer 650000 is incorrect
In 2017, Amirante Corporation had pretax financial income of $168,000 and taxable income of $120,000. The...
In 2017, Amirante Corporation had pretax financial income of $168,000 and taxable income of $120,000. The difference is due to the use of different depreciation methods for tax and accounting purposes. The effective tax rate is 40%. Compute the amount to be reported as income taxes payable at December 31, 2017.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT