Question: Exercise 14-1 Modified The Company operates two separate lines of business. 2020 2021 Fountain pens (192,000) 42,000 57,000 247,000 Professional accounting services Total net

Exercise 14-1 Modified The Company operates two separate lines of business. 2020

Exercise 14-1 Modified The Company operates two separate lines of business. 2020 2021 Fountain pens (192,000) 42,000 57,000 247,000 Professional accounting services Total net income for tax purposes Deduct: Loss carry forward NIL 289,000 Total axable income NIL ??? Non-capital loss carry forward (135,000) Determine the minimum taxable income for 2021 assuming: 1) there was no acquisition of control in either year; 2) there was an acquistion of control on Jan 1, 2021. 1) NO acq of control 2) Acq of Control 2021 2021 42,000 42,000 247,000 247,000 289,000 289,000

Step by Step Solution

★★★★★

3.47 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 No Acquisition of control The year 2021 Net Income for Tax Purpose 289000 42000 247000 less No... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

You thought it was strange that no one called you on your new mobile phone, even though you had given your family members, friends, and boss your new number. Two weeks after getting the new phone and...

For 2020 an individual had net income for tax purposes of $196,000 and Division C deductions of $18,000. During 2020 the individual had medical expenses of $7,900 and made charitable donations of...

Determine the Net Income For Tax Purposes of Mr. Hope pursuant to ITA para. Use the appropriate dividend amount and related DTC calculated. So grossed up dividend amount (i.e. taxable dividend ) is $...

Determine the taxpayer's gross income for tax purposes in each of the following situations. a. Deb, a cash basis taxpayer, traded a corporate bond with accrued interest of $300 for corporate stock...

Pettit Printing Company has a total market value of $100 million, consisting of 1 million shares selling for $50 per share and $50 million of 10 percent perpetual bonds now selling at par. The...

(NOL Carry back and Carry forward, Valuation Account versus No Valuation Account) Sondgeroth Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes....

(NOL Carry back and Carry forward, Valuation Account Needed) Nielson Inc. reports the following pretax income (loss) for both book and tax purposes. (Assume the carry back provision is used where...

Lean Accounting. Flexible Security Devices (FSD) has introduced a just-in-time production process and is considering the adoption of lean accounting principles to support its new production...

Hudson Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory...

Trapani Tool Company is evaluating the acquisition of Sussman Casting. Sussman has a tax loss carry forward of $1.8 million. Trapani can purchase Sussman for $2.1 million. It can sell the assets for...

In the right-hand column below, certain financial ratios are listed. To the left of each ratio is a business transaction or event relating to the operating activities of Delta Company (each...

A citrus farmer would like to estimate the true mean weight (in grams) of all oranges grown in his orange grove. Based on a random sample of 100 oranges, a 97% confidence interval for is calculated...

It has been argued that inflation is both good and bad. How can this be? Explain. Are government efforts to control inflation well advised? Explain?

What is the term used to describe the act of exaggerating the company's activities to protect the environment? CSR groenwashing corporate stratery FSG

1. A universal auto-steer system costs $6500. When used for primary tillage, it can reduce the overlap of a tandem disk from 2 ft. to 0.5 ft. on a 30 ft. implement. How many acres are required to...

Select either "True" or "False" for each of the following statements regarding the types of education covered by the American Opportunity tax credit and the lifetime learning credit. a. The American...

f(x) = ln(x - 3) (a) Find the domain of f. b) Graph f. (c) From the graph, determine the range and any asymptotes off. (d) Find f-1, the inverse of f. (e) Find the domain and the range off-1. (f)...

How many kilojoules are absorbed when 23.09 mol of C6H6() are formed? 6C(s) + 3H2(g) ( C6H6() H = 49.0 kJ

During the month the company completed 70,000 widgets, including the 10,000 widgets 50% complete of work in process at the beginning of the month. The ending work in process was 10,000 widgets 40%...

me only final answer only option number also QUESTION 3/6 Two distributions (A and B) are shown on the box plot below. Which of the following statements is not supported by the plot? C) Both...

In addition to the information presented in Mini Exercises 14.1 and 14.2, ABC Company currently pays a standard rate of $1 per pound for raw materials. Each unit should be produced in 15 minutes of...

In addition to the information presented in Mini Exercise 14.1, each unit that ABC Company produces uses 3 pounds of raw material. ABC requires 25% of the next month's budgeted production as raw...

If I need to I can list these questions separately and also provide more of the annual report if needed. Thanks for the help! I need help. I have been asked to review the the 2018 Annual Report (Form...

Pollution Taxes on Output: Suppose you are one of many firms that refine crude oil into gasoline. Not surprisingly, this process is one that creates pollution. The government therefore announces a...

Section 6 - Business Office - Study Material and Assignment are attached. Thank you in advance for your assistance. AM 3630 - Dealership Accounting Business Office Exercises 1. Post the following...

On October 31, the stockholders? equity section of Heins Company consists of common stock $290,000 and retained earnings $888,000. Heins is considering the following two courses of action: (1)...