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lesya692 [45]
3 years ago
8

Puritan Corp. reported the following pretax accounting income and taxable income for its first three years of operations: 2017 $

350,000 2018 (600,000 ) 2019 700,000 Puritan's tax rate is 40% for all years. Puritan elected a loss carryback. As of December 31, 2018. Puritan was certain that it would recover the full tax benefit of the NOL that remained after the operating loss carryback. What would be the net loss in 2018 reported in Puritan’s income statement?
Business
1 answer:
dangina [55]3 years ago
3 0

Answer:

Net loss in 2018 reported in Puritan’s income statement = $360,000

Explanation:

Net Loss:

Net loss is the amount by which a company's total costs are more than its total sales during a particular period.

Formula:

Net loss = -taxable income + Income tax benefit

As taxable income for 2018 = $600,000 and Puritan's tax rate is 40% for all years

Therefore by putting the values in the above formula, we get

Net loss in 2018 in Puritan’s income statement = -$600,000 +  ($600,000 * 40%)

Net loss in 2018 reported in Puritan’s income statement =  -$600,000 + 1500000

Net loss in 2018 to be reported in Puritan’s income statement = $360,000

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The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: Account
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Answer:

Postal Service

The amount that would be reported for Stockholders' Equity at December 31, 2015 is:

= $130,000.

Explanation:

a) Trial Balance

December 31, 2015:  

Cash                                         $15,000

Accounts receivable                   11,000

Supplies                                       4,000  

Prepaid insurance (12-month)    6,000

Equipment                               210,000

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Note payable, due 6/30/16                        70,000

Common stock                                           42,000

Retained earnings (1/1/15)                          60,000

Dividends                                   14,000

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Advertising expense                 21,000

Depreciation expense              12,000

Insurance expense                    3,000

Rent expense                           17,000

Salaries and wages expense 32,000

Supplies expense                     6,000

Totals                                   $351,000 $351,000

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Service revenue                                      $133,000

Advertising expense                 21,000

Depreciation expense              12,000

Insurance expense                    3,000

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Statement of Retained Earnings

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Retained earnings (1/1/15)                        $60,000

Net income                                                 42,000

Dividends                                                    (14,000)

Retained earnings (December 31, 2015) $88,000

Equity:

Common stock     $42,000

Retained earnings  88,000

Total equity         $130,000

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What type of relationship exists between interest rates and aggregate spending?
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Answer:

Explanation:

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Answer:

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