NINE Company reported a pre-tax financial income of $8,584,950 for the year ended December 31, 2021. The following items were also noted: Insurance premium on life of an officer with NINE Company as the beneficiary P 175,000 Tax depreciation 785,900 Financial depreciation 572,150 Penalties due to late filing of income tax returns 80,650 Dividend received 348,250 Estimated litigation loss accrued for financial accounting purposes deductible when settled in the future 275,875 Estimated doubtful accounts expense 197,745 Estimated tax payments 500,500 Income tax rate 35% Cash received for rent of which 486,280 will be recognized as income by the company on the next year 589,125
NINE Company reported a pre-tax financial income of $8,584,950 for the year ended December 31, 2021. The following items were also noted: Insurance premium on life of an officer with NINE Company as the beneficiary P 175,000 Tax depreciation 785,900 Financial depreciation 572,150 Penalties due to late filing of income tax returns 80,650 Dividend received 348,250 Estimated litigation loss accrued for financial accounting purposes deductible when settled in the future 275,875 Estimated doubtful accounts expense 197,745 Estimated tax payments 500,500 Income tax rate 35% Cash received for rent of which 486,280 will be recognized as income by the company on the next year 589,125
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 12P: Comprehensive Colt Company reports pretax financial income of 143,000 in 2019. In addition to pretax...
Related questions
Question
1) Compute for the taxable income
2) Compute for the
3) Compute for the net income after tax (round off to the nearest whole number)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT