Monday 9 July 2018

ACC 317 Week 2 Chapter 16 Homework

ACC 317 Week 2 Chapter 16 Homework



LNS Corporation reports book income of $2,000,000. Included in the $2,000,000 is $15,000 of tax-exempt interest income. LNS reports $1,345,000 in ordinary and necessary business expenses. What is LNS Corporation’s taxable income for the year?

ATW Corporation currently uses the FIFO method of accounting for its inventory for book and tax purposes. Its beginning inventory for the current year was $8,000,000. Its ending inventory for the current year was $7,000,000. If ATW had been using the LIFO method of accounting for its inventory, its beginning inventory would have been $7,000,000 and its ending inventory would have been $5,500,000. Assume ATW Corporation’s marginal tax rate is 34 percent.












  1. How much more in taxes did ATW Corporation pay for the current year because it used the FIFO method of accounting for inventory than it would have paid if it had used the LIFO method?


SWK’s taxable income is $60,000.

     
Compute SWK Inc.'s tax liability for each of the following scenarios: (Use Corporate Tax Rate Table.)
  1. SWK's taxable income is $60,000.
tax liability _________
  1. SWK's taxable income is $275,000
tax liability __________
  1. SWK's taxable income is $15,500,000
tax liability __________
  1. SWK's taxable income for the year is $50,000,000.
tax liability __________


LNS Corporation reports book income of $2,000,000. Included in the $2,000,000 is $15,000 of tax-exempt interest income. LNS reports $1,345,000 in ordinary and necessary business expenses. What is LNS Corporation’s taxable income for the year?

ATW Corporation currently uses the FIFO method of accounting for its inventory for book and tax purposes. Its beginning inventory for the current year was $8,000,000. Its ending inventory for the current year was $7,000,000. If ATW had been using the LIFO method of accounting for its inventory, its beginning inventory would have been $7,000,000 and its ending inventory would have been $5,500,000. Assume ATW Corporation’s marginal tax rate is 34 percent.
  1. How much more in taxes did ATW Corporation pay for the current year because it used the FIFO method of accounting for inventory than it would have paid if it had used the LIFO method?


SWK’s taxable income is $60,000.

     
Compute SWK Inc.'s tax liability for each of the following scenarios: (Use Corporate Tax Rate Table.)
  1. SWK's taxable income is $60,000.
tax liability _________
  1. SWK's taxable income is $275,000
tax liability __________
  1. SWK's taxable income is $15,500,000
tax liability __________
  1. SWK's taxable income for the year is $50,000,000.
tax liability __________



LNS Corporation reports book income of $2,000,000. Included in the $2,000,000 is $15,000 of tax-exempt interest income. LNS reports $1,345,000 in ordinary and necessary business expenses. What is LNS Corporation’s taxable income for the year?

ATW Corporation currently uses the FIFO method of accounting for its inventory for book and tax purposes. Its beginning inventory for the current year was $8,000,000. Its ending inventory for the current year was $7,000,000. If ATW had been using the LIFO method of accounting for its inventory, its beginning inventory would have been $7,000,000 and its ending inventory would have been $5,500,000. Assume ATW Corporation’s marginal tax rate is 34 percent.
  1. How much more in taxes did ATW Corporation pay for the current year because it used the FIFO method of accounting for inventory than it would have paid if it had used the LIFO method?


SWK’s taxable income is $60,000.

     
Compute SWK Inc.'s tax liability for each of the following scenarios: (Use Corporate Tax Rate Table.)
  1. SWK's taxable income is $60,000.
tax liability _________
  1. SWK's taxable income is $275,000
tax liability __________
  1. SWK's taxable income is $15,500,000
tax liability __________
  1. SWK's taxable income for the year is $50,000,000.
tax liability __________

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