Calculate the capital gains tax in 2021, assuming a capital gains tax of 15%.
Q: Oriole's is a brand of lotion created specifically for sensitive skin. The company, which goes by…
A: FIFO METHOD:— Under this method, equivalent units are calculated by adding equivalent units in…
Q: On December 31, 2023, Clarkson Company had 100,000 shares of common stock outstanding and 30,000…
A: Earnings per shareEarnings per share is a company's net profit divided by the number of common…
Q: Required information [The following information applies to the questions displayed below.] A recent…
A: Depreciation is used to allocate the cost of a tangible asset over its useful life. It reflects the…
Q: ! Required information 2 Use the following information for the Exercises below. (Algo) [The…
A: Plantwide Overhead Rate:— It is the rate used to allocate manufacturing overhead costs to cost…
Q: i need the answer quickly
A: The amortization cost model provides insight into how bond prices change over time due to the…
Q: D2L Homepage - ONLINE Principle ☑ Pearson MyLab and Mastering x P Do Homework Do Homework - Chapter…
A: AccountCostLand89,500Land improvement91,400Building479,600Furniture13,600Explanation: Land Land…
Q: MaxiDrive manufactures a wide variety of parts for recreational boating, including a gear and…
A: With taking consideration the selling price and profit to be earned from a product, the total cost…
Q: After reviewing the new activity-based costing system that Nancy Chen has Implemented at IVC's…
A: Activity based costing is a method of costing that identifies various activities undertaken by the…
Q: Common-Size Income Statements Consider the following income statement data from the Ross Company:…
A: Common size income statement Common size income statement is an income statement in which each item…
Q: 2. What was the net book value of the aircraft on December 31 of the current year? Net book value
A: Property, plant, and equipment refers to those assets which are long-term in nature and are used by…
Q: Janet owns a home at the lake. She incurs the following expenses: Mortgage interest Property taxes…
A: The Tax Court method is used for rental property with mixed personal and rental use, allocates…
Q: PA6-1 (Algo) Calculating Contribution Margin, Contribution Margin Ratio, Break-E [LO 6-1, 6-2]…
A: Total Fixed cost remains same at each level of units.Contribution margin ratio = Contribution margin…
Q: At the beginning of its 2021 tax year, Hiram owned the following business assets: Furniture…
A: Under MACRS, capitalized cost of an asset is recovered over a specific period via annual deductions.…
Q: E16.8 (LO 3) AP Following is information for Marcel Ltée's investments held for trading. Marcel is a…
A: Journal entriesThe process of recording the day-to-day transactions of the company in the books is…
Q: Bonita Corporation has a cumulative temporary difference related to depreciation of $593,000 at…
A: Deferred tax liability is required to be recorded by a company when it pays lower taxes than what is…
Q: Classified Electronics has an unfunded retiree health care plan. Each of the company's three…
A: The present value with respect to future pension benefits that working employees are entitled to…
Q: i need the answer quickly
A: In accounting, journal entries are the main way that financial transactions are documented. These…
Q: Kana is a CPA who loves chinchillas. She breeds chinchillas as pets (she currently owns 13 of them)…
A: The objective of the question is to determine the amount of income and expense Kana recognizes from…
Q: Oriole Company Inc. had a beginning inventory of 105 units of Product RST at a cost of $7 per unit.…
A: b1. 8.886b2. FIFOLIFOAverage Costending inventory cost2,350…
Q: In its first year of operations a company produced and sold 70,000 units of Product A at a selling…
A: Activity based costing is one of the methods used to allocate the overheads to the products by using…
Q: i need the answer quickly
A: Break even point :— It is the point of production where total cost is equal to total revenue. At…
Q: Delts Company produces a single product. The cost of producing and selling a single unit of this…
A: The objective of the question is to determine the financial advantage or disadvantage of accepting a…
Q: Ratios Analyzing Firm Profitability The following information is available for Buhler Company:…
A: RATIO ANALYSISRatio analysis is the process of determining and interpreting numerical relationships…
Q: Accounting income (loss) and taxable income (loss) were the same for all years involved. Assume a…
A: Given:Tax rate for 2018 and 2019: 30%Tax rate for the remaining years: 25%All income and losses are…
Q: On January 1, 2024, Dolar Incorporated had the following account balances in its shareholders'…
A: Shareholder's EquityThe amount available to the shareholders in the company is called shareholder's…
Q: When using Excel for Accounting, what is the best way to show a sub-total of numbers? Use 'left…
A: In accounting, presenting sub-totals of numbers in Excel is crucial for organizing financial data…
Q: Crane Company lost all of its inventory in a fire on December 26, 2022. The accounting records…
A: The cost of goods sold is the formula used to compute the cost incurred on the goods sold during the…
Q: On 28 April 20X2, Peele Realty purchased land and building for $5.25 million and $3.39 million,…
A: Here are the journal entries for Peele Realty :1. Revaluation of Land:- 20X2: Increase in land value…
Q: Executive officers of Baird Company are wrestling with their budget for the next year. The following…
A: Budgeting is a process of estimation of future income and expenditure for a particular period of…
Q: Preethi is a salaried, nonexempt administrative assistant and is paid semimonthly. Preethi is…
A: The total earnings made by an employee of an organisation before any taxes and deductions is known…
Q: Doyle Company issued $390,000 of 10-year, 8 percent bonds on January 1, Year 2. The bonds were…
A: 1. Income Statement2. Balance Sheet3. Statement of Cash FlowThe first statement shows the income…
Q: The entity reports the following transactions for the 2022 tax year. The trustee accumulates all…
A: The amount of tax that a person or organization owes the federal government as a result of their…
Q: Which of the following does ratio analysis in an industry set-up help compare? (Note: More than one…
A: The objective of this question is to understand the various comparisons that can be made using ratio…
Q: Oriole Company Inc. had a beginning inventory of 105 units of Product RST at a cost of $7 per unit.…
A: The average cost per unit is approximately $8.894.Explanation:To calculate the average cost per…
Q: The TimpRiders LP has operated a motorcycle dealership for a number of years. Amir is the limited…
A: Partnership refers to the legal agreement between two or more persons who decide to run the business…
Q: Doyle Company issued $390,000 of 10-year, 8 percent bonds on January 1, Year 2. The bonds were…
A: Financial Statements:Financial statements consist of income statement,balance sheetand cash flow…
Q: Account ccounts payable cumulated depreciation rian Adams, capital** rian Adams, withdrawals ash…
A: Partnership:A partnership is an agreement between two or more people to run a business and share its…
Q: On June 30, 2024, Georgia-Atlantic, Incorporated leased warehouse equipment from IC Leasing…
A: Pretax amount of net receivables = Lease receivables + Interest revenue - Lease paymentsInterest…
Q: Works. Adjusted trial balance information for the year ended Decer Account Accounts payable…
A: A partnership agreement is a contract between one or more businesses or individuals who are choosing…
Q: What are the two main characteristics of intangible assets?
A: "Since you have asked multiple questions, the first question was answered for you. If you want the…
Q: The following information relates to production activities of Mercer Manufacturing for the year.…
A: Direct material variance :— It is the difference between actual direct material cost and standard…
Q: [The following information applies to the questions displayed below.] In 2023, Sheryl is claimed as…
A: Under U.S law, the government gives a deduction to all parents who have dependent children. Kiddie…
Q: Shirelle and Newman are each 50% partners of a business that operates as a partnership. The business…
A: A partnership is a type of business structure in which two or further individualities or…
Q: i need the answer quickly
A: Special ordersThe company receives special orders at a point in time when the company has to decide…
Q: Sheffield Company sells one product. Presented below is information for January for Sheffield Com…
A: FIFO method assumes that inventory which is first bought will be sold first. Under perpetual…
Q: Kingston Specialty Corporation manufactures joint products P and Q. During a recent period, joint…
A: Joint costs allocated to Q = $90,000 × 0.7333 = $66,000Explanation:To allocate the joint costs to…
Q: Elise Dubois is single, has no dependents, and lives at 55855 Ridge Drive in Lafayette, LA 70593.…
A: Elise Dubois' total tax liability for the year is $11,411.45.Explanation:To prepare Elise Dubois'…
Q: Lucky Corporation began the year with a simple capital structure consisting of 200,000 shares of…
A: Earnings per share is the average earnings earned per share during the year. It is calculated by…
Q: Mike Mulligan wants to expand his heavy equipment business into excavation. He plans to buy a used…
A: Initial Investments (Year 0):Purchase of excavator: -$300,000Inventory of spare parts: -$10,000Total…
Q: You have the following information for Blossom Company. Blossom Company uses the periodic method of…
A: To maximize gross profit, the COGS would be $211,090.To minimize gross profit, the COGS would be…
OMG is in a country which has a
a. Purchased a building in February 2018 for $26,000,000. In March 2019, the company spent $2,000,000 to install solar panels for electricity in the building. The building was sold for $28,500,000 in 2021. The annual maintenance cost was $500,000. The cost of advertising the sale of the building and the legal fees amounted to $1,500,000.
b. A motor vehicle was purchased for $5 million on January 1, 2018. The vehicle was sold in 2021 for $4.5 million.
c. Bought an antique painting for $3.5 million in 2019. The painting was sold in 2021 for $10 million.
d. Purchased a government bond for $5,000,000 in 2018 and sold it for $7,500,000 in 2021.
The company is entitled to an Annual Exemption of $500,000. Capital losses as of 1 January 2021 were $1,500,000.
Calculate the capital gains tax in 2021, assuming a capital gains tax of 15%.
Step by step
Solved in 3 steps
- OMG is in a country which has a capital gains tax, conducted the following transactions: a. Purchased a building in February 2018 for $26,000,000. In March 2019, the companyspent $2,000,000 to install solar panels for electricity in the building. The building was sold for $28,500,000 in 2021. The annual maintenance cost was $500,000. The cost of advertising the sale of the building and the legal fees amounted to $1,500,000. b. A motor vehicle was purchased for $5 million on January 1, 2018. The vehicle was sold in 2021 for $4.5 million. c. Bought an antique painting for $3.5 million in 2019. The painting was sold in 2021 for $10 million. d. Purchased a government bond for $5,000,000 in 2018 and sold it for $7,500,000 in 2021.The company is entitled to an Annual Exemption of $500,000. Capital losses as of 1 January 2021 were $1,500,000. Calculate the capital gains tax in 2021, assuming a capital gains tax of 15%. Part CJohn Peter is aware that there is no Capital Gains tax in Jamaica.…OMG is in a country which has a capital gains tax, conducted the following transactions:a. Purchased a building in February 2018 for $26,000,000. In March 2019, the companyspent $2,000,000 to install solar panels for electricity in the building. The building wassold for $28,500,000 in 2021. The annual maintenance cost was $500,000. The cost ofadvertising the sale of the building and the legal fees amounted to $1,500,000.b. A motor vehicle was purchased for $5 million on January 1, 2018. The vehicle was soldin 2021 for $4.5 million.c. Bought an antique painting for $3.5 million in 2019. The painting was sold in 2021 for$10 million.d. Purchased a government bond for $5,000,000 in 2018 and sold it for $7,500,000 in 2021.The company is entitled to an Annual Exemption of $500,000. Capital losses as of 1 January2021 were $1,500,000.Calculate the capital gains tax in 2021, assuming a capital gains tax of 15%.PTI Inc., located in a country which has a capital gains tax, conducted the following transactions: a. Purchased a building in February 2018 for $26,000,000. In March 2019, the company spent $2, 800,000 to install solar panels for electricity in the building. The building was sold for $40,000,000 in 2021. The annual maintenance cost was $500,000. The cost of advertising the sale of the building and the legal fees amounted to $1,200,000. b. A motor vehicle was purchased for $5 million on January 1, 2018. The vehicle was sold in 2021 for $4.5 million. c. Bought an antique painting for $3.5 million in 2019. The painting was sold in 2021 for 1 million. d. Purchased a government bond for $5,000,000 in 2018 and sold it for $7,500,000 in 2021.The company is entitled to Annual Exemption of $500,000. Capital losses as at 1 January 2021 was $3,500,000. Calculate the capital gains tax in 2021, assuming a capital gains tax of 20%.
- Part BPTI Inc., located in a country which has a capital gains tax, conducted the followingtransactions:a. Purchased a building in February 2018 for $26,000,000. In March 2019, thecompany spent $2, 800,000 to install solar panels for electricity in the building. Thebuilding was sold for $40,000,000 in 2021. The annual maintenance cost was$500,000. The cost of advertising the sale of the building and the legal feesamounted to $1,200,000.b. A motor vehicle was purchased for $5 million on January 1, 2018. The vehicle wassold in 2021 for $4.5 million.c. Bought an antique painting for $3.5 million in 2019. The painting was sold in 2021for 1 million.d. Purchased a Government bond for $5,000,000.The company is entitled to Annual Exemption of $500,000. Capital losses as at 1 January2021 was $7,500,000.Required:Calculate the capital gains tax in 2021, assuming a capital gains tax of 20% If PTI Inc. were resident in Jamaica, what would the balancing adjustment be on the sale of the motor…a. Princess Town Insurance Inc., located in a country which has a capital gains tax, purchased a building in February 2018 for $26,000,000. In March 2019, they spent $1, 800,000 to install solar panels for electricity in the building. The building was sold for $39,000,000 in 2020. The annual maintenance cost was $500,000. The cost of advertising the sale of the building and the legal fees amounted to $1,950,000.Capital losses were as follows:2017 - $200,0002018 - $250,000Required:Calculate the capital gains tax in 2020, assuming a capital gains tax of 20% B. Explain whether the following transaction would give rise to a capital gain charge:(a) Winnings from legal gambling(b) Gains on disposal of copyright for a play by the Institute of Culture.(c) Gains arising from damages to a warehouse building which contained goods for resale. The damage was so severe the building had to be demolished. A large sum of insurance proceeds was received.(d) Gains on the disposal of shares in an…Princess Town Insurance Inc., located in a country which has a capital gains tax, purchased a building in February 2018 for $26,000,000. In March 2019, they spent $1, 800,000 to install solar panels for electricity in the building. The building was sold for $39,000,000 in 2020. The annual maintenance cost was $500,000. The cost of advertising the sale of the building and the legal fees amounted to $1,950,000. Capital losses were as follows:2017 - $200,0002018 - $250,000 Required:Calculate the capital gains tax in 2020, assuming a capital gains tax of 20%
- 2Part BPTI Inc., located in a country which has a capital gains tax, conducted the followingtransactions:a. Purchased a building in February 2018 for $26,000,000. In March 2019, thecompany spent $2, 800,000 to install solar panels for electricity in the building. Thebuilding was sold for $40,000,000 in 2021. The annual maintenance cost was$500,000. The cost of advertising the sale of the building and the legal feesamounted to $1,200,000.b. A motor vehicle was purchased for $5 million on January 1, 2018. The vehicle wassold in 2021 for $4.5 million.c. Bought an antique painting for $3.5 million in 2019. The painting was sold in 2021for 1 million.d. Purchased a Government bond for $5,000,000.The company is entitled to Annual Exemption of $500,000. Capital losses as at 1 January2021 was $7,500,000.Required:Calculate the capital gains tax in 2021, assuming a capital gains tax of 20%Miracle Manufacturing Company Limited (Miracle) has the following transactions relating to its long life productive asset: On 1 February, 2020, the company purchased a sewing machine from Germany with an invoice price of $270,000, legal title fees of $2,500 and sales tax of $8,300. Miracle paid the total amount with $45,000 as down payment and the remaining balance with a Note Payable (ignore the interest expense). Miracle estimated the sewing machine would have a $21,600 residual value and a six-year useful life. On 31 March, 2020 (i.e. the company’s financial year-end), Miracle recorded the adjusting entry for depreciation using the straight line method to the nearest month. On 1 October, 2020, the company sold the sewing machine for $244,800 cash and paid off the Note Payable. Prepare the relevant journal entries for each of the above transactions. Assume the adjusting entries are performed annually on 31 March.ISKOLAR started constructing a building to be used for producing its goods in March 31, 2021. On January 1, 2021, ISKOLAR borrowed a loan to specifically finance the construction. The interest for the year amounted to P150,000, the Company also earned interest income of P30,000 for the year from its temporary placement of the proceeds from the specific borrowing. According to PAS23, how much borrowing cost should be capitalized by ISKOLAR in 2021?
- HOME Ltd. is a Canadian-controlled private corporation operating a small land-development business. In the start of 2020, the company acquired a license to manufacture pre-fab homes and began operations immediately. Financial information for the 2020 taxation year is outlined below: 1. HOME 's profit before income taxes for the year ended November 30, 2020, was $245,000, as follows: Income from land development and pre-fab home manufacturing $248,000 Loss of sale of properties (3,000) $245,000 The loss on sale of property resulted from two transactions. On October 1, 2020, HOME sold all of its shares of Q Ltd., a 100% subsidiary, for $100,000. (The shares were acquired seven years ago for $80,000). Also, during the year, HOME sold some of its vehicles (class 10) for $25,000. The vehicles originally cost $50,000 and had a book value of $48,000 at the time of sale. New vehicles were obtained under a lease arrangement. (NOTE: capital gains are only 50% taxable). 2. The 2019 corporate tax…Ven Company is a retailer. In 2021, its before-tax net income for financial reporting purposes was $600,000. This included a $150,000 gain from the sale of land held for several years as a possible plant site. The cost of the land was $100,000, the contract price for the sale was $250,000, and the company collected $120,000 in the year of sale. The income per books also included $90,000 from a 24-month service contract entered into in July 2020 (the customer paid $180,000 in advance for this contract). The addition to the allowance for uncollectible accounts for the year was $70,000, and the actual accounts written off totaled $40,000. Answer the following regarding any necessary adjustments to the before-tax net income per books to compute Ven's taxable income for the year. What is the gross profit percentage for the installment sale? What is amount of the installment gain installment sale for 2021? What is the amount of service contract revenue recognized in 2021? What is the amount…On July 1, 2021, STS Inc. acquires a piece of equipment at $230,000 to manufacture product A. It paid $4,000 for shipping and $3,500 for installation of the equipment. Testing fees amounted to $4,500. The company was able to sell some of the output produced during the testing for $600. It also had to repair one part of the equipment that was damaged during the testing, which cost $1,000. The equipment’s useful life is 10 years or 400,000 units of product A. Its residual value is $35,000. It produced 800 units in 2021, 3,000 units in 2022 and 4,500 units in 2023. The units of production method is to be used for depreciation. Required Calculate the equipment total cost at acquisition. The equipment was sold on December 31, 2023 for $230,000 cash. Prepare the journal entry to record the sale.