Question Details

(Solved) Sales Cost of goods sold Gross profit $33,000,000 -22,000,000 $11,000,000 Dividend income Tax-exempt interest income Total income Expenses:


Permtemp Corporation formed in 2015 and, for that year, reported the following book income statement and balance sheet, excluding the federal income tax expense, deferred tax assets, and deferred tax liabilities:


TAX YEAR 2015

Note: For 2015 forms, go to forms and publications, previous years, at the IRS website, www.irs.gov.

For 2015, Permtemp reported the following book income statement and balance sheet, excluding the federal income tax expense, deferred tax assets, and deferred tax liabilities:

Sales $33,000,000

Cost of goods sold (22,000,000)

Gross profit $11,000,000

Dividend income 55,000

Tax-exempt interest income 15,000

Total income $11,070,000

Expenses:

Depreciation $ 800,000

Bad debts 625,000

Charitable contributions 40,000

Interest 455,000

 Meals and entertainment 60,000

 Other 4,675,000

Total expenses (6,655,000)

Net income before federal income taxes $ 4,415,000

Cash $ 2,125,000

Accounts receivable $ 3,300,000

Allowance for doubtful accounts  (450,000) 2,850,000

Inventory 6,000,000

Fixed assets $10,000,000

Accumulated depreciation (1,600,000) 8,400,000

investment in corporate stock   1,000,000

Investment in tax-exempt bonds 50,000

Total assets $20,425,000

Accounts payable $ 2,120,000

Long-term debt 8,500,000

Common stock 6,000,000

Retained earnings 3,805,000

 Total liabilities and equity $20,425,000


*** attachment has accounts in excel spreadsheet

Additional information for 2015:

  1. Depreciation for tax purposes is $2.45 million under MACRS.
  2. Bad debt expense for tax purposes is $425,000 under the direct writeoff method.
  3. Qualified production activities income is $3 million.


Required for 2015:

a.     Prepare page 1 of the 2015 Form 1120, computing the corporation’s taxable income and tax liability.

b.     Determine the corporation’s deferred tax asset and deferred tax liability situation, and then complete the income statement and balance sheet to reflect proper GAAP accounting ASC 740. Use the balance sheet information to prepare Schedule L of the 2015 Form 1120.  

c.      Prepare the 2015 Schedule M-3 for Form 1120.

d.     Prepare a schedule that reconciles the corporation’s effective tax rate to the statutory 34% tax rate.  

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Sep 05, 2019

PRICE: $15

Solution~000200209347.zip (25.37 KB)

Buy this answer for only: $15

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy from our tutoring website www.aceyourhomework.com (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Sep 05, 2019

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.

Order Now