QUESTION 23 For 2021, Forrway Corporation, an Accrual Basis calendar year corporation, had Net income Per Books of $111.550 and the following transactions Premiums on Life Insurance Policy on its key employees - $6.000; Excess Capital Losses $12,000: Excess Tax Depreciation - $9,000; Life insurance Proceeds on life of its key employees - $65,000: Rent Income received in 2021 - $30,000: (20,000 is prepaid and relates to 2021X Tax-Exempt Interest Income- S8.000; Federal income fax lNability for 2021- $15,450; Prepaid Rent received and properly taxed in 2020 (but not earned for Financial Accounting purposes until 2021)-$5,000: Interest Expense on Tax-Exempt Interest Income item - $2.000. The total amount " added" to Net Income Per Books for Forrway Corporation in its Schedule M-1 Reconciliation for the tax year of 2021 is: O$ 80,000. $167,000. O$ 55,450. O$ 87,000. QUECTI ON 14

QUESTION 23 For 2021, Forrway Corporation, an Accrual Basis calendar year corporation, had Net income Per Books of $111.550 and the following transactions Premiums on Life Insurance Policy on its key employees - $6.000; Excess Capital Losses $12,000: Excess Tax Depreciation - $9,000; Life insurance Proceeds on life of its key employees - $65,000: Rent Income received in 2021 - $30,000: (20,000 is prepaid and relates to 2021X Tax-Exempt Interest Income- S8.000; Federal income fax lNability for 2021- $15,450; Prepaid Rent received and properly taxed in 2020 (but not earned for Financial Accounting purposes until 2021)-$5,000: Interest Expense on Tax-Exempt Interest Income item - $2.000. The total amount " added" to Net Income Per Books for Forrway Corporation in its Schedule M-1 Reconciliation for the tax year of 2021 is: O$ 80,000. $167,000. O$ 55,450. O$ 87,000. QUECTI ON 14

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter19: Corporations: Distributions Not In Complete Liquidation

Section: Chapter Questions

Problem 35P

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QUESTION 28 For 2020, Forway Corporation, an Accrual Basis calendar year corporation, had Net Income Per Books of $111,550 and the following transactions Premiums on Life Insurance Policy on its key employees -$6,000, Excess Capital Losses - $12.000, Excess Tax Depreciation - $9,000, Life Insurance Proceeds on life of its key employees - $65.000: Rent Income received in 2020 - $30,000 (S20,000 is prepaid and relates to 2020): Tax-Exempt Interest Income - $8,000, Federal Income Tax liability for 2020 - $15,450; Prepaid Rent received and properly taxed in 2019 (but not eamed for Financial Accounting purposes until 2020) - $5.000; Interest Expense on Tax-Exempt Interest Income item - $2.000. The total amount "added" to Net Income Per Books for Forrway Corporation in its Schedule M-1 Reconciliation for the tax year of 2020 is OS 80.000 O$ 55,450 OS 07.000 $167.000
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22. for 2021, Forway corporation, an accrual basis calendar year corporation, had net income per books of $ 111,550 and the following transactions: premiums on life insurance policy on its key employees- $6000 excess capital losses $2000 excess tax depreciation $9000 life insurance proceeds on life of its key employees $55000 rent income received in 2021 $40000 ( $30000 is prepaid and related to 2021) tax exempt interest income $8000 federal income tax liability for 2021 $15450 prepaid rent received and properly taxed in 2020 ( but not earned for financial accounting purpose until 2021) $15000 interest expense on tax exempt interest income item $2000 The taxable income for Forrway corporation for the tax year of 2021 is ( as computed in its schedule M-1 reconciliation) $90000 $100000 $80000 $70000 23. for 2021, Forway corporation, an accrual basis calendar year corporation, had net income per books of $ 111,550 and the following transactions: premiums on life insurance policy on its…
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