Inge Manufacturers, Inc. had earnings before taxes of $106,000 for the year ended December 31, 2019....

 

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Inge Manufacturers, Inc. had earnings before taxes of $106,000 for the year ended December 31, 2019. Inge also had the following income-tax-related circumstances during 2019: Inge's warranty cost estimate for 2019 was $60,000. The company paid independent contractors $47,000 to repair or replace its products. > Tax authorities notified Inge's management that a $ 40,000 payment made to an official in a foreign country in 2018 violates the FCPA. > In 2017, Inge made a charitable contribution of $24,000 to a national charitable organization. The taxing authorities permitted only 1/4 of that contribution to be a tax deduction in fiscal-year 2017, but the remainder may be deducted in equal installments over the following three years. > Inge received $17,000 as a fee from a state government for establishing an office in that state, thus providing significant employment opportunities there. The tax authorities have determined that the fee will not be taxable income. Inge made estimated payments of $20,000 to federal, state, and local tax authorities. The aggregate statutory tax rate is 40%. Inge recorded goodwill impairment of $19,000. Amortization of goodwill expense for tax purposes is $23,000. Depreciation of property, plant and equipment was greater for tax purposes than for book purposes by $22,000. Prepare a schedule showing the calculation of taxable income for 2019. Inge Manufacturers, Inc. had earnings before taxes of $106,000 for the year ended December 31, 2019. Inge also had the following income-tax-related circumstances during 2019: Inge's warranty cost estimate for 2019 was $60,000. The company paid independent contractors $47,000 to repair or replace its products. > Tax authorities notified Inge's management that a $ 40,000 payment made to an official in a foreign country in 2018 violates the FCPA. > In 2017, Inge made a charitable contribution of $24,000 to a national charitable organization. The taxing authorities permitted only 1/4 of that contribution to be a tax deduction in fiscal-year 2017, but the remainder may be deducted in equal installments over the following three years. > Inge received $17,000 as a fee from a state government for establishing an office in that state, thus providing significant employment opportunities there. The tax authorities have determined that the fee will not be taxable income. Inge made estimated payments of $20,000 to federal, state, and local tax authorities. The aggregate statutory tax rate is 40%. Inge recorded goodwill impairment of $19,000. Amortization of goodwill expense for tax purposes is $23,000. Depreciation of property, plant and equipment was greater for tax purposes than for book purposes by $22,000. Prepare a schedule showing the calculation of taxable income for 2019.

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Income before taxes 106000 Permanant Differences 40000 Permanant made o... View the full answer