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prohojiy [21]
3 years ago
14

Wilcox Corporation reported the following results for its first three years of operation: 2020 income (before income taxes): $30

0,000 2021 loss (before income taxes): $(2,700,000) 2022 income (before income taxes): $3,000,000 There were no permanent or temporary differences during these three years. Assume a corporate tax rate of 20% for 2020 and 2021, and 30% for 2022. Assuming that Wilcox elects to use the carryforward provision and not the carryback provision, what income (loss) is reported in 2021
Business
1 answer:
inysia [295]3 years ago
8 0

Answer:

$1,890,000

Explanation:

Calculation to determine what income (loss) is reported in 2021

2021 Reported Income loss=[$2,700,000-($2,700,000 × 30%)]

2021 Reported Income loss=($2,700,000-$810,000)

2021 Reported Income loss=$1,890,000

Therefore the income (loss) that is reported in 2021 will be $1,890,000

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Madole Corporation has two production departments,Forming and Customizing.The company uses a job-order costing system and comput
Ludmilka [50]

Complete Question:

Madole Corporation has two production departments,Forming and Customizing.The company uses a job-order costing system and computes a predetermined overhead rate in each production department.The Forming Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours.At the beginning of the current year,the company had made the following estimates:

Machining Customizing Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour 20,000 2,000 $90,000 $88,000 18,000 1,000 $ 2.00 $ 4.00 During the current month the company started and finished Job K973. The following data were recorded for this job: Job K973 Machine-hours Direct labor-hours Machining Customizing 70 40 40 60.

a. Calculate the estimated total manufacturing overhead for the Forming Department.

b. Calculate the predetermined overhead rate for the Customizing Department.

c. Calculate the total overhead applied to Job K973 in both departments.

Answer:

Madole Corporation

a. Calculation of the Estimated total manufacturing overhead:

                                                                    Machining  Customizing Total

Total fixed manufacturing overhead cost   $90,000    $88,000  $178,000

Variable manufacturing overhead cost         36,000      80,000     116,000

Total overhead cost                                    $126,000  $168,000 $294,000

Estimated total manufacturing overhead cost for the Forming Department = $126,000

b. Calculation of the predetermined overate rate for the Customizing Department = Overhead cost/Direct labor hours

= $168,000/2,000

= $84 per direct labor hour

For Forming department = $126,000/18,000 = $7 per machine hour

c. Total overhead applied to Job K973:

Machining = 70 * $7 =           $490

Customizing = 60 * $84 = $5,040

Total overhead applied = $5,530

Explanation:

a) Data and Calculations:

                                                                            Machining     Customizing

Machine-hours                                                       18,000        20,000

Direct labor-hours                                                   1,000           2,000

Total fixed manufacturing overhead cost           $90,000     $88,000

Variable manufacturing overhead per machine-hour $2.00

Variable manufacturing overhead per direct labor-hour        $ 4.00

Data for Job K973

                                           Machining     Customizing

Machine-hours                     70                     40

Direct labor-hours               40                     60

4 0
3 years ago
Metlock enters into an agreement with Traveler Inc. to lease a car on December 31, 2019. The following information relates to th
Setler [38]

Answer:

Dec. 31, 2016

Dr Right use Asset $15,270

Cr To Lease Liability $15,270

Dec. 31, 2017

Dr Interest expense $1,221.6

Dr Lease liability $4,431.22

Cr Cash $5,652.82

Dec. 31, 2017

Dr Amortization expense$5,090

Cr To Right-of-use Asset $5,090

Dec. 31, 2018

Dr Interest expense $867.10

Dr Lease Liability $5,071.36

Cr To Cash A/c $5,935.46

Dec. 31, 2018

Dr Amortization expense $5,090

Cr To Right-of-use asset A/c $5,090

Explanation:

Date Particulars Debit ($) Credit ($)

Dec. 31, 2016

Dr Right use Asset $15,270

Cr To Lease Liability $15,270

Dec. 31, 2017

Dr Interest expense

($15,270 × 8% borrowing rate) $1,221.6

Dr Lease liability

($5,652.82 - $1,221.6) $4,431.22

Cr Cash $5,652.82

(To record interest expense)

Dec. 31, 2017

Dr Amortization expense (Asset value /Estimated useful life $15,270/ 3) $5,090

Cr To Right-of-use Asset $5,090

(To record amortization of the Right-of-use asset)

Dec. 31, 2018

Dr Interest expense

(($15,270 - $4,431.22) × 8%) $867.10

Dr Lease Liability $5,071.36

Cr To Cash A/c $5,935.46

(To record interest expense)

Dec. 31, 2018

Dr Amortization expense ($15,270 / 3) $5,090

Cr To Right-of-use asset $5,090

(To record amortization of the right-of-use asset)

4 0
3 years ago
A temporary license permits the holder to drive for how many days
Drupady [299]
A person who has a temporary license have shorter days of having to be permitted to drive than of who have an actual license. Those who has temporary license are only permitted to drive for sixty days and when converted to months, they are permitted to drive for two months. 
4 0
3 years ago
Photo Co. operates four film developing plants in upstate New York. The four plants are identical. They employ the same producti
GalinKa [24]
Films where made to entertain other people so they would get money that is the answer
3 0
3 years ago
Lopez Corporation earned $100,000 this year and distributed $80,000 in dividends to its shareholders. If Leon is a 50% sharehold
poizon [28]

Answer:

$32,000

Explanation:

Data provided in the question

Earned income this year = $100,000

Distributed amount of dividend = $80,000

Shareholder percentage = 50%

Tax on ordinary income = 37%

Tax rate on Dividend = 20%

So by considering the above information, the amount is

= (Distributed amount of dividend × Shareholder percentage)

= $80,000 × 50%

= $40,000

Now

= $40,000 × 20%

= $8,000

So , after cash flow is

= $40,000 - $8,000

= $32,000

8 0
3 years ago
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