Determining the company income tax liability

Assignment Help Accounting Basics
Reference no: EM13156677

Alpha Company reported net incomes in 2007 and 2008 before sustaining a significant operating loss in 2009. All of the 2009 loss can be carried back against the income of 2007 and 2008 for purposes of determining the company's 2009 income tax liability. How should the carryback be presented in the company's 2009 financial statements?

a. As an extraordinary item in the income statement

b. As a revenue from operations in the income statement

c. As the correction of an error in the retained earnings statement

d. As a reduction in the operating loss on the income statement for the year 2009

Reference no: EM13156677

Questions Cloud

Binomial probability that one tax return involves fraud : Suppose a random sample of 20 tax returns from small business is examined. What is the binomial probability that at least one tax return involves fraud?
Productivity of the sheet metal workers : Explain carefully in terms of production theory why it might be that no amount of "cracking down" can increase worker productivity at CF&D.
What is the firms revenue function : What is the firms revenue function? Graph this function. Give a plausible reason why a firms demand might look like this.
What might the consequence be of pouring the plates : all aspects of the kirby Bauer test are standardized to assure reliability of comparison with the published standards.
Determining the company income tax liability : All of the 2009 loss can be carried back against the income of 2007 and 2008 for purposes of determining the company's 2009 income tax liability. How should the carryback be presented in the company's 2009 financial statements?
Tracking the movements of the earliest americans : Discuss the historical detective work involved in tracking the movements of the earliest Americans.
Determine the total protein content in a particular fraction : To determine the total protein content in a particular fraction, what must you multiply by what? Hint: there are 3 quantities!
Probability that selected chocolate bar has more calories : Approximately normally distributed with σ=10. Determine the probability that a randomly selected chocolate bar will have: 4.3 more than 155 calories.
Explain the assumptions that go into the correct formula : Specify the correct and \simpli ed" formulas for this rate of returnfrom the text and course lectures, and explain the assumptions that go into thecorrect formula.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Write the appropriate audit report

Write the appropriate audit report, assuming you believe the departure from GAAP is material but not enough to cause you to give an adverse opinion.

  Approach to stakeholder impact analysis

In what circumstances would each approach to stakeholder impact analysis (moral standards, five-question, and Pastin's approach) be most useful? Summarize the approaches and describe when each would be most or least useful.

  Flotation costs of the new common stock

Debt equity ratio of 0.70, building a new $45 million manufacturing facility. cash flow of $6.2 million in perpetuity. the flotation costs of the new common stock would be 8% of the amount raised, The required return on the company's new equity is..

  Determining net operating income

Yore Corporation has provided the following data for the month of June. The beginning balance in the finished goods inventory account was $35,000 and the ending balance was $26,000. Sales totaled $220,000.

  Total required production in units of finished product

Compute the company's total required production in units of finished product for the entire three month period ending September 30.

  Determining annual rate of return

A financial analyst tells you that investing in stocks will allow you to triple your money in 15 years. What annual rate of return is the analyst assuming you can earn?

  Increase in the total stockholders equity

the common stock had a market value of $xx per share (the shares were originally issued at $xx per share). As a result of this exchange, Abel's total stockholders' equity will increase by ??

  Prepare a balance sheet and income statement

Make a balance sheet and income statement as of December 31, 2003, for Sharpe Manufacturing Company from the following information.

  Prepare the companys stockholders equity section

Melcher, Inc., originally sold 100,000 shares of its $10 par value common stock at $25 per share. Several years later the company repurchased 10,000 of these shares at $55 per share. Melcher currently holds those shares in treasury. Prepare the co..

  Account payable cycle-cash conversion cycle

Obtain at least two years of financial information pertaining to General Motors company from its most recent annual report (10-K).

  What are the ethical considerations

Who will suffer negative effects if you do not comply with Gena Schmitt's instructions? Who will suffer if you do comply? What are the ethical considerations in this case? What alternatives do you have?

  Five types of analytical procedures

Compare and contrast the five types of analytical procedures. Determine for which situations each is best suited. Defend your answer.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd