Answer: $324,800
Explanation:
It is a general Principle that when calculating income tax expense, that the Extraordinary loss is treated separately because it is not a usual thing.
The income gained from changing the Accounting principle is not included as well.
The Taxable income to be recorded therefore is,
Taxable income = Income + Gain on disposal - Unusual loss (due to its infrequency)
Taxable income = 928,000 + 32,000 - 148,000
Taxable income = $812,000
Tax expense would therefore be,
= 812,000 * 40%
= $324,800
$324,800 is the amount of income tax expense Arreaga would report on its income statement.
Answer:
The 9,300 should Allegheny report as Uncollectible Accounts Expense on its Year 2 income statement
Explanation:
The non-collectible accounts expenses on its Year 2 income statement is shown below:
= Ending balance + write off balance - opening balance
= $6,000 + $7,200 - $3,900
=$9,300
The accounts receivable is not to be considered because we have to find out the uncollectible accounts expense, so the account receivable balance should not be taken in the computation part.
Hence, the 9,300 should Allegheny report as Uncollectible Accounts Expense on its Year 2 income statement
Answer:
True
Explanation:
Prevention Cost is the cost which is incurred to avoid the loss due to defects in the products manufactured, here the cost incurred is as follows:
Training employees that is the benefit from training will be reducing cost and improving quality of the product, therefore, it will be considered as prevention costs.
Further cost incurred for redesigning products and processes will improve the quality of the product and the process therefore this cost can also be considered as prevention costs.
Final Answer
The above statement is true.
Answer:
150000
Explanation:
The question says that Harry received a fair market value = 450000 dollars
Meanwhile he transferred 650000 dollars of assets
Fair value of assets = 650000 - 200000 = 450000
Harry's adjusted basis = 350000
Therefore the share received will be:
350,000 - 200,000
= 150,000 dollars.
Harry's basis in the stock received from the corporation is $150,000.
Thank you!