Here is some information regarding the Prosper Corporation in 2021: 1. Depreciation reported in the annual...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Here is some information regarding the Prosper Corporation in 2021: 1. Depreciation reported in the annual tax return (SPT) exceeds the depreciation reported in the income statement. The surplus is worth $320,000. The difference will be reversed evenly for $80,000 throughout 2022-2025. 2. Deposit interest income recognized in 2021 amounted to $25,000. 3. Prosper Corp. records cost for entertainment and representation without the attachment of Nominative List of $15,000. 4. The result of a stock opname in 2021 shows the existence of slow-moving items of more than 3 years in the amount of $40,000, so the Company acknowledges an impairment in the value of inventory. The company has previously never recognized the impairment in inventory value. According to the taxation, companies can recognize impairment in the value of inventory if there is a removal news. 5. Payment of rent received in advance on January 1, 2021 amounts to $150,000 for the next three years. Of this amount, $100,000 was reported as income received in advance in the December 31, 2021 financial statements. 6. The effective tax rate for 2021 and forth is 22%. 7. Income tax of $800,000 is payable in the 2021 tax return. Instructions: 1. Calculate Prosper Corp.'s taxable income for 2021! 2. Calculate Prosper Corp.'s profit before tax for 2021! 3. Prepare the necessary journal(s) to record Prosper Corp.'s income tax expense, deferred tax, and income tax payable for 2021 and 2022, assuming that the taxable income for 2022 is $3,300,000! Here is some information regarding the Prosper Corporation in 2021: 1. Depreciation reported in the annual tax return (SPT) exceeds the depreciation reported in the income statement. The surplus is worth $320,000. The difference will be reversed evenly for $80,000 throughout 2022-2025. 2. Deposit interest income recognized in 2021 amounted to $25,000. 3. Prosper Corp. records cost for entertainment and representation without the attachment of Nominative List of $15,000. 4. The result of a stock opname in 2021 shows the existence of slow-moving items of more than 3 years in the amount of $40,000, so the Company acknowledges an impairment in the value of inventory. The company has previously never recognized the impairment in inventory value. According to the taxation, companies can recognize impairment in the value of inventory if there is a removal news. 5. Payment of rent received in advance on January 1, 2021 amounts to $150,000 for the next three years. Of this amount, $100,000 was reported as income received in advance in the December 31, 2021 financial statements. 6. The effective tax rate for 2021 and forth is 22%. 7. Income tax of $800,000 is payable in the 2021 tax return. Instructions: 1. Calculate Prosper Corp.'s taxable income for 2021! 2. Calculate Prosper Corp.'s profit before tax for 2021! 3. Prepare the necessary journal(s) to record Prosper Corp.'s income tax expense, deferred tax, and income tax payable for 2021 and 2022, assuming that the taxable income for 2022 is $3,300,000!
Expert Answer:
Answer rating: 100% (QA)
a Prosper Corps Taxable Income for 2021 Particulars Amount Net profit before tax 363636400 Less Adju... View the full answer
Posted Date:
Students also viewed these accounting questions
-
Here is some information about a compound. It has a melting point of 33C, a normal boiling point of 81C, a heat of fusion of 11 kJ/mol, and a heat of vaporization of 32 kJ/mol. What is its vapor...
-
Here is some information about a professor salary index (PSI). (a) Calculate the unknown quantities a, b, c, d, e in me table. Review Equation 14..:3. (b) What is the base year of the PSI? How did...
-
Goodchill Industries manufactures freezers. Here is some information about its "LX17" line of freezers over the past year: Number of units manufactured and sold...
-
Ethanol reacts with sodium and forms two products which are Options: 1) Sodium ethanoate and hydrogen 2) Sodium ethanoate and oxygen 3) Sodium ethoxide and hydrogen 4) Sodium ethoxide and oxygen
-
The null and alternative hypotheses for a one-way ANOVA test are, respectively, H0: 1 = 2 = = k Ha: Not all means are equal. Suppose that, in reality, the null hypothesis is false. Does that mean...
-
Tamra Corp. makes one product line. In February 2013, Tamra paid $ 530,000 in factory overhead costs. Of that amount, $ 124,000 was for Januarys factory utilities and $48,000 was for property taxes...
-
Define dynamic object types. Besides the example in this chapter, can you think of other situations where we would encounter them?
-
Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display to retailers for $8.12 per string. The variable costs per string are as follows: Direct materials...
-
Ames Trading Company has the following products in its ending inventory. Cost per Market per Product Quantity Mountain bikes Skateboards Gliders 14 12 30 Unit $ 710 240 910 Unit $ 640 280 870 Compute...
-
The information provided in this test allows you to set up the Cieneral, Payables and Receivables ledgers for an Ontario company named CHRIS'S WELDING owned and run by Chris George, amaster welder....
-
Find a real-world case in which you identify environmental factors affecting the health of a population. Hint: Define the problem Identify the population, place, and time. Identify the environmental...
-
Explain what is meant by advanced manufacturing technologies.
-
Explain the nature and purpose of zero-base budgeting (ZBB).
-
Explain the processes necessary for authorisation and review of capital projects.
-
Define a 'controllable cost'.
-
Define internal rate of return and explain how it is calculated.
-
Derive in details the complexity of the following code fragments in terms of the Big-0 notation: (n is a very large number in all questions) 1) for (i = 2; i 3; j--) { x = 2 y; Z = X--; } 2) for (i =...
-
A genetically engineered strain of Escherichia coli (E. coli) is used to synthesize human insulin for people suffering from type I diabetes mellitus. In the following simplified reaction scheme,...
-
In the diagrams in Figure 10. 22, the velocity of an object is given along with the vector representing a force exerted on the object. For each case, determine whether the object's speed increases,...
-
Each diagram in Figure 10. 24 indicates the momentum of an object before and after a single force is exerted on it. For each case determine the direction of the force. Data from Figure 10 . 24 (a)...
-
Draw the sum \(\vec{A}+\vec{B}\) and the difference \(\vec{A}-\vec{B}\) of each vector pair in Figure 10. 23 . Data from Figure 10 . 23 88 (a) (9) L 189 (c) 109 F V 100 B (P)
Study smarter with the SolutionInn App