1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
IRISSAK [1]
3 years ago
12

Fore Farms reported a pretax operating loss of $120 million for financial reporting purposes in 2021. Contributing to the loss w

ere (a) a penalty of $12 million assessed by the Environmental Protection Agency for violation of a federal law and paid in 2021 and (b) an estimated loss of $10 million from accruing a loss contingency. The loss will be tax deductible when paid in 2022. The enacted tax rate is 25%. There were no temporary differences at the beginning of the year and none originating in 2021 other than those described above. Required: 1. Prepare the journal entry to recognize the income tax benefit of the net operating loss in 2021. 2. What is the net operating loss reported in 2021 income statement? 3. Prepare the journal entry to record income taxes in 2022 assuming pretax accounting income is $125 million. No additional temporary differences originate in 2022.
Business
1 answer:
satela [25.4K]3 years ago
7 0

Answer  

The answer and procedures of the exercise are attached in a microsoft excel document.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

Download xlsx
You might be interested in
Hernandez Company had the following transactions during 2020, its first year in business:
Trava [24]

Question Completion:

Prepare Journal Entries.

Answer:

Hernandez Company

Journal Entries:

January 2 Debit Cash $1,512,000

Credit Common stock $630,000

Credit Additional Paid-in Capital-Common stock $882,000

To record the issuance of 42,000 shares of $15 par common stock for $36 per share.

April 3 Debit Cash $ 776,000

Credit Preferred stock $560,000

Credit Additional Paid-in Capital-Preferred stock $216,000

To record the issuance of 8,000 shares of $70 par preferred stock for $97 per share.

October 6 Debit Treasury Stock $30,000

Debit Additional Paid-in Capital-Common stock $28,000

Credit Cash $58,000

To record the repurchase of 2,000 shares of treasury stock for $29 per share.

December 9 Debit Cash $3,850

Credit Treasury stock $1,650

Credit Additional Paid-in Capital-Common stock $2,200

To record the reissuance of 110 shares of treasury stock for $35 per share.

Explanation:

a) Data and Analysis:

January 2 Cash $1,512,000 Common stock $630,000 Additional Paid-in Capital-Common stock $882,000

issuance of 42,000 shares of $15 par common stock for $36 per share.

April 3 Cash $ 776,000 Preferred stock $560,000 Additional Paid-in Capital-Preferred stock $216,000

issuance of 8,000 shares of $70 par preferred stock for $97 per share.

October 6 Treasury Stock $30,000 Additional Paid-in Capital-Common stock $28,000 Cash $58,000

repurchase of 2,000 shares of treasury stock for $29 per share.

December 9 Cash $3,850 Treasury stock $1,650 Additional Paid-in Capital-Common stock $2,200

re-issue of 110 shares of treasury stock for $35 per share.

4 0
3 years ago
Which of the following is a step in the creation of an Operational Definition?
Lapatulllka [165]

Explanation:

Recall the quote in the "first step" section of this site, "You can manage, what you can measure; you can measure, what you can define; you can define, what you can understand". ... It helps us build a clear understanding of a concept or a phenomenon so that it can be unambiguously measured.

<em><u>PLEASE.</u></em><em><u>.</u></em><em><u>.</u></em><em><u>.</u></em><em><u>.</u></em><em><u>.</u></em><em><u>.</u></em><em><u> MARK</u></em><em><u> ME</u></em><em><u> AS</u></em><em><u> BRILLIANT</u></em><em><u> ANSWER</u></em>

3 0
3 years ago
Herbert gained most of the capital for his new start-up project by posting a small demonstration of his product on a website tha
qwelly [4]

Answer:

d. was able to fund his project through seed money.

Explanation:

Seed money or seed funding is the first fund or seed that is obtained for a new business idea. Mostly seed money is obtained from friends, family, and colleagues.

Herbert had a great idea by presenting a demonstration of his product on a website, attracting people with interest to fund the start-up.

8 0
3 years ago
What is price elastic of supply
Reika [66]
The price elasticity of supply is a measure used in economics to show the responsiveness, or elasticity, of the quantity supplied of a good or service to a change in its price.
4 0
3 years ago
A firm in the market for designer jeans has some degree of monopoly power. the demand curve it faces has a price elasticity of d
Pavlova-9 [17]

Answer:

$86.67 is the profit maximizing price for the monopolist

Explanation:

In order to find the profit maximizing price for the monopolist using its price elasticity and marginal cost we have to use the formula

Price= Marginal cost* (elasticity/elasticity+1)

Marginal cost = $65.0065

Elasticity = -4

Price = 65.0065 *(-4/-4+1) = 65.0065*(-4/-3)= 86.67

5 0
3 years ago
Other questions:
  • A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variabl
    14·1 answer
  • In a sales mix situation at any level of units sold net income will be higher if
    10·1 answer
  • Brutus' Fried Chicken patented the recipe for the spices used in the coating of the chicken. The patent protection lasts for 17
    13·1 answer
  • Additional data: 1. Dividends declared and paid were $25,400. 2. During the year, equipment was sold for $8,700 cash. This equip
    8·1 answer
  • Which of the following is the reason behind the slow growth in U.S. incomes during the 1970s and 1980s?
    12·1 answer
  • A sales training workshop devoted to communicating the importance of obtaining marketing information from customers would be aim
    5·1 answer
  • Sarasota Company has a factory machine with a book value of $86,300 and a remaining useful life of 7 years. It can be sold for $
    6·1 answer
  • Which of the following statements are true regarding​ externalities? ​(Check all that apply​.) A. Deadweight loss can be either
    6·1 answer
  • The following transactions occurred during the month of June 2021 for the Stridewell Corporation. The company owns and operates
    15·1 answer
  • _______ is considered the marketspace that bring lenders and borrowers together.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!