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inna [77]
3 years ago
11

Assume that Puritan Corp. operates in an industry for which NOL carryback is allowed. Puritan Corp. reported the following preta

x accounting income and taxable income for its first three years of operations: 2020 $ 358,000 2021 (600,000 ) 2022 728,000 Puritan's tax rate is 36% for all years. Puritan elected a loss carryback. As of December 31, 2021. Puritan was certain that it would recover the full tax benefit of the NOL that remained after the operating loss carryback. What did Puritan report on December 31, 2021, as the deferred tax asset for the NOL carryforward
Business
1 answer:
timama [110]3 years ago
6 0

Answer:

$87,120

Explanation:

The calculation of the deferred tax asset for the NOL carryforward is given below:

= (Year 2021 loss - Year 2022 income) × tax rate applicable for all years

= ($600,000 - $358,000) × 36%

= $242,000 × 36%

= $87,120

Since in a year 2021 it is a loss and the income in year 2022 that is to be adjusted and the same is considered in the computation part

Hence,  the deferred tax assets for the NOL carryforward is $87,120

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A card which requires the cardholder to pay a sum of money equal to the credit limit is called a
Brrunno [24]
The answer is Credit card.

Credit card is a small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit.
5 0
2 years ago
At the beginning of her current tax year, Angela purchased a zero-coupon corporate bond at original issue for $30,000 with a yie
lisabon 2012 [21]

Answer:

She will report an interest income of $1,827 for this year.

Explanation:

The yield to maturity is 6%. However, the interest on the bond is compounded semi-annually. Therefore, we need to calculate the interest income for either semi-annual period and then sum the two incomes.  

Interest income for first semi-annual period

= $30,000 x 0.06 x 6/12

= $900

Interest income for second semi-annual period

= ($30,000 + $900) x 0.06 x 6/12

= $30,900 x 0.06 x 6/12

= $927

Interest income for the year

= $900 + $927

= $ 1,827

4 0
3 years ago
Read 2 more answers
Jubilee, Inc., owns 30 percent of JPW Company and applies the equity method. During the current year, Jubilee buys inventory cos
kumpel [21]

Answer:

the gross profit reported is $1,518

Explanation:

The computation of the amount of gross profit that reported is shown below:

But before that the gross profit percentage is

= (Sales - cost of goods sold) ÷ (sales)

= ($138,000 - $110,400) ÷ ($138,000)

= 20%

Now the gross profit is

= $25,300 × 20% × 30%

= $1,518

Hence, the gross profit reported is $1,518

8 0
2 years ago
Many firms advertise. What effect does advertising have on firm​ profits? One possible effect of advertising is to:_________
spayn [35]

Answer:

Option b: Increase profits by shifting the demand curve for the product to the right

Explanation:

Marketing is simply all the activities necessary for a firm to sell a product to a consumer. Firm engages in marketing to make their brand or product known.

Advertising has a whole lot of effect in the society at large. There are economic effect, social effect and others.

effects of advertising on the prices of goods and service includes exerting an upward pressure on prices that is the Cost of advertising is passed along to consumers and Advertising makes us less price sensitive) and exerting a downward pressure on prices may lead to economies of scale and Lowers the cost of sales.

Social Effects of Advertising is that it is manipulative and promotes unnecessary consumption,Advertising makes us more intelligent consumers and promotes worthwhile social causes.

6 0
2 years ago
______ approach to capital budgeting discounts the after-tax cash flow from a project going to the equity holders of a levered f
lord [1]

Flow to Equity (FTE) is the approach to capital budgeting that discounts the after-tax cash flow from a project going to the equity holders of a levered firm.

An alternative capital budgeting strategy is the flow to equity (FTE) or free cash flow approach. The FTE approach merely requires that equity capital be discounted at the cost of the cash flows from the project to the equity holders of the leveraged firm. The amount of cash that a company's equity shareholders have access to after all costs, reinvestment, and debt repayment is taken into account is known as flow to equity. Free Cash Flow to Equity (FCFE) is calculated as Net Income - (Capital Expenditures - Depreciation) - (Change in Non-cash Working Capital) - (Change in Non-cash Equity) + (New Debt Issued - Debt Repayments) This is the cash flow that can be used to repurchase stock or pay dividends.

More about cash flow brainly.com/question/17406590

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4 0
1 year ago
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