Swifty Corporation's pre-tax accounting income of $748,000 for the year 2023 included the following items: Amortization of identifiable intangibles $142,000 Depreciation of building 115,000 Loss from discontinued operations 46,000 Unusual, non-recurring gains 157,000 Profit-sharing payments to employees 63,600 Ewing Industries Ltd. would like to purchase Swifty. In trying to measure Swifty's normalized earnings for 2023, Ewing determines that the building's fair value is triple the book value and that its remaining economic life is double the life that Swifty is using. Ewing would continue the profit-sharing payments to employees, with the payments being based on income from continuing operations before amortization and depreciation. Calculate the 2023 normalized earnings amount of Swifty that Ewing would use to calculate goodwill. Normalized earnings $
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- On January 1, 2022, Gore, Inc. purchased a machine for €720,000 which will be depreciated €72,000 per year for financial statement reporting purposes. For income tax reporting, Gore elected to expense €80,000 and to use straight-line depreciation which will allow a depreciation deduction of €64,000 for 2022. Assume a present and future enacted income tax rate of 30%. What amount should be added to Gore's deferred tax liability for this temporary difference at December 31, 2022?On 1, 2020, Midland Company purchased a machine for P1,400,000. This machine has - year useful residual value of P200,000 , and deprecated using straight- method for financial statement purposesFor purposes, depreciation was P500,000 for 2020 and P400,000 for 2021. The 2021 Income before and depreciation was P2,000,000 , and the tax was 30%. The entity made an estimated tax payment of P200,000 during 2021 What is the total income tax payable on December 31, 20219On January 1, 2021, Ameen Company purchased major pieces of manufacturing equipment for a total of $54 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31, 2023, the book value of the equipment was $48 million and its tax basis was $38 million. At December 31, 2024, the book value of the equipment was $46 million and its tax basis was $31 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2024 was $35 million. Required: Prepare the appropriate journal entry to record Ameen’s 2024 income taxes. Assume an income tax rate of 25%. What is Ameen’s 2024 net income?
- On January 1, 2021. Ameen Company purchased major pieces of manufacturing equipment for a total of $70 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31, 2023, the book value of the equipment was $64 million and its tax basis was $54 million. At December 31, 2024, the book value of the equipment was $62 million and its tax basis was $47 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2024 was $35 million. Required: 1. Prepare the appropriate journal entry to record Ameen's 2024 income taxes. Assume an income tax rate of 25%. 2. What is Ameen's 2024 net income? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate journal entry to record Ameen's 2024 income taxes. Assume an income tax rate of 25%. Note: If no entry is required for a transaction/event, select "No…Following is a list of items relating to the financial statements of YKN Bhd for the year ended 31December 2020• Amortisation of intangible assets of RM346,339• Corporate tax rate is at 24%.• Finance costs of RM831,138• Finance income of RM173,421• Gain due to exchange differences from translating functional currencies into presentationcurrency of RM120,000• Gain on disposals of major subsidiaries amounted to RM1,500• Gain on sales of manufacturing operating segment of RM100,000• Gains on re-measuring available-for-sale investment of RM80,000• Loss on litigation settlements of RM2,125,000• Loss amounted to RM450,000 due to disposal of its cotton mills, which constitute amajor line of business• Loss arising from translating the financial statements of a foreign operation of RM33,000• Loss from disposal of financial assets of RM50,000• Loss on disposals of items of property, plant and equipment of RM34,000• Loss on impairment of goodwill of RM110,000• Loss on re-measuring financial…Monroe Company is engaged in a number of research and development projects. Its accounting policy with regards to research and development is to capitalize expenditure as far as allowed by PAS 38 Intangible Assets. At June 30, 2024, the following balances existed in the company's accounting records: Project A : Development completed June 30, 2022. Total expenditure P200.000. Being amortized over five years on the straight-line basis in accordance with the company's standard policy. Balance at June 30, 2024: P120,000. Project B: A development project commenced July 1, 2019. Total expenditures in the years ended June 30, 2023 and June 30, 2024 totaled P175,000. During the year ended June 30, 2025, it became clear that a competitor had launched a superior product and the project was abandoned. Further development expenditure in the year ended June 30, 2025 amounted to P55,000. Project C: Development commenced October 1, 2020. Expenditures per year: Year ended June 30, 2025,…
- Following is a list of items relating to the financial statements of YKN Bhd for the year ended 31December 2020• Amortisation of intangible assets of RM346,339• Corporate tax rate is at 24%.• Finance costs of RM831,138• Finance income of RM173,421• Gain due to exchange differences from translating functional currencies into presentationcurrency of RM120,000• Gain on disposals of major subsidiaries amounted to RM1,500• Gain on sales of manufacturing operating segment of RM100,000• Gains on re-measuring available-for-sale investment of RM80,000• Loss on litigation settlements of RM2,125,000• Loss amounted to RM450,000 due to disposal of its cotton mills, which constitute amajor line of business• Loss arising from translating the financial statements of a foreign operation of RM33,000• Loss from disposal of financial assets of RM50,000• Loss on disposals of items of property, plant and equipment of RM34,000• Loss on impairment of goodwill of RM110,000• Loss on re-measuring financial…Maryland Company purchased equipment for 2,000,000 on January 1,2020 with a useful life of 5 years and a residual value of 500,000 using the straight-line method for financial statement purposes. Depreciation was P300,000 for 2020 and P200,000 for 2021 for tax purposes. Income before tax and depreciation was P3,000,000 during 2021 and the tax rate was 25%. During 2021 the entity made an estimated tax payment of 200,000. What is the income tax payable on December 31,2021? 640,000 500,000 450,000 675,000Maryland Company purchased equipment for 2,000,000 on January 1,2020 with a useful life of 5 years and a residual value of 500,000 using the straight-line method for financial statement purposes. Depreciation was P300,000 for 2020 and P200,000 for 2021 for tax purposes. Income before tax and depreciation was P3,000,000 during 2021 and the tax rate was 25%. During 2021 the entity made an estimated tax payment of 200,000. What is the income tax payable on December 31,2021? 640,000 500,000 450,000 675,000 What would be the total amount of income tax expense that is reported in the 2021 income statement? 675,000 500,00 475,000 640,000
- An entity had the following events and transactions during 2020: Depreciation for 2019 was understated by P500,000 A litigation settlement resulted in a loss of P2,000,000 The inventory on December 31, 2018 was overstated by P800,000 The entity disposed of a recreational division at a loss P1,500,000 The income tax rate is 30%. What total amount of loss should be included in income from continuing operations for 2020?An SME provided the following on December 31, 2022: Cash Accounts receivable Prepayments Inventories Investment in associate Property, plant and equipment Accumulated depreciation and impairment Software - net of amortization and impairment Deferred tax asset Bank overdraft Bank loan, fully payable in 2022 and prepayable without penalty Trade payables Interest payable Current tax liability Provision for warranty. Employee benefit obligation, current portion, P4,000 Finance lease liability, current portion, P20,000 Share capital Retained earnings 5. What is the total amount of current assets? A. 675,000 B. 615,000 C. 785,000 D. 725,000 6. What is the total amount of current liabilities? A. 810,000 B. 860,000 C. 786,000 D. 806,000 7. What is the total shareholders' equity? A. 2,460,000 B. 2,400,000 C. 2,430,000 D. 2,700,000 25,000 530,000 60,000 60,000 110,000 3,250,000 700,000 10,000 5,000 80,000 50,000 430,000 2,000 270,000 4,000 10,000 44,000 30,000 2,430,000Knowl Company plans to dispose of a group of net assets that form part of a disposal group. The net assets on December 31, 2020 are (at carrying value):Goodwill - P6,000,000; PPE - P18,000,000; Inventory - P10,000,000; Financial Assets (profit of P2,000,000 recognized in equity) - P7,000,000; Financial liabilities - P4,000,000; Total Net Assets - P37,000,000. Before the date of reclassification, the PPE has a fair value of P26,000,000; the inventory has a net realizable value of P9,000,000. The fair value less cost to sell of the disposal group is P25,000,000. What amount of the impairment is allocated to the inventory?