Company A reported taxable income of $73,000 for 2021. Company A later determined that purchases were overstated

Fantastic news! We've Found the answer you've been seeking!

Question:

Company A reported taxable income of $73,000 for 2021. Company A later determined that purchases were overstated by $15,000 in 2021 and inventory was understated by $ 8,000 at the end of 2021. What is the correct amount of taxable income for 2021?

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0324300987

10th Edition

Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones

See More Books

Posted Date: Feb 16, 2023 01:50 AM

See More Questions

In 2020, SML Corp. reported taxable income of $100,000 before any NOL deductions. SML has a $170,000 NOL carryover that originated in 2017 and a $90,000 NOL carryover that originated in 2018. What is...
In 2022, SML Corp. reported taxable income of $100,000 before any NOL deductions. SML has a $170,000 NOL carryover that originated in 2017 and a $90,000 NOL carryover that originated in 2020. What is...
In the first year of operations, a company reported taxable income of $160,000 and paid $32,000 of income taxes. It is now the end of the second year, and the company has a loss of $300,000 for tax...
Most businesses will incur debt at some point during their existence. Question 26 options: True False
Multiple Choice Questions The following questions address fraud risk factors and the assessment of fraud risk. a. Because of the risk of material misstatements due to fraud (fraud risk), an audit of...
Rock Solid has a stock portfolio worth $250 million, which tracks closely with the S&P 500. The portfolio manager fears that a decline is coming and want to completely hedge the value of the...
Show that $\left(\frac{1}{2}, \frac{1}{2} ight)$ is the optimal policy for Example 18.2 . Example 18.2 (Volatility pumping) Suppose there are two assets available for investment. One is a stock...
After examining all the potential projects, you discover that there are many more projects this year with positive NPVs than in a normal year. What two problems might this extra large capital budget...
Total assets $1,030,000 Total liabilities 618,000 Total stockholders' equity ? Interest expense $ 20,000 Income tax expense 110,000 Net income 157,000 (a) Compute the December 31, 2022, balance in...
Alaska Airlines showed the following items in its balance sheet as of December 31, 2011, the end of the fiscal year ($ in millions): Inventories and supplies .............. $ 44.3 Prepaid expenses...
Question 4 Non current assets Pinky and the Brain Ltd acquired an item of plan at a gross cost of $680,000 on October 20X2. The plant has an estimated life of 10 years with residual value equal to...
Should financial statement analyses be conducted only on historical data? Explain your answer.
Why is accrual accounting favored over cash accounting under GAAP?
What are the primary purposes and benefits of budgeting?
What are examples of financial and nonfinancial factors that could be included in a project scoring system?
What is the difference between a cost center and a profit center? Give examples of each in a hospital setting.
Find y as a function of t if 10000y"729y = 0 with y(0) = 9, y'(0) = 8. 0 y =
What can you do to reduce hunger where you live? To reduce hunger globally?
Which financial ratios may be used to evaluate the effectiveness and efficiency of a companys reportable operating segments?
Distinguish among the types of inventory accounts used for merchandising and manufacturing companies.
Under what conditions would you expect to see Allowance for Repairs in a companys balance sheet?
A bank offers customers the option of receiving interest compounded quarterly, semi-annually, or annually. If the rate of interest is the same, which is the best option for the customer?
The director of marketing of your organization asks for your advice regarding sponsorship deals she is contemplating. She has to choose from the following: a 15-year sponsorship paying $$100,000$...
An athlete signs a five-year endorsement deal with a prominent sponsor. Under this deal the athlete will receive $$5,000$ each year for the first three years and $$6,500$ each year for the final...

Company A reported taxable income of $73,000 for 2021. Company A later determined that purchases were overstated

Question:

Expert Answer:

The overstated purchases of 15000 will have increased the cost of goods sold COGS by 15000 wh... View the full answer

Intermediate Accounting

Students also viewed these accounting questions