Evaluate oriole companys current income tax expense

Assignment Help Taxation
Reference no: EM134150

Question :

Oriole Company reported pretax total income from continuing operations of $1,000,000 and taxable income of $1,200,000. The unfavorable book-tax difference of $200,000 was because of a $200,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $300,000 because of an increase in the reserve for bad debts, and a $100,000 unfavorable permanent difference from the disallowance of compensation expense related to the exercise of incentive stock options. Oriole Company's applicable tax rate is 34 percent.

a. Evaluate Oriole Company's current income tax expense.

b. Evaluate Oriole Company's deferred income tax expense or benefit.

c. Determine Oriole Company's effective tax rate

d. Give a reconciliation of Oriole Company's effective tax rate with its hypothetical tax rate of 34 percent.

Reference no: EM134150

Questions Cloud

Prepare the financing and investing activities sections : Create the operating activities section of the company's statement of cash flows, considering use of: Prepare the financing and investing activities sections of the statement of cash flows.
Establish a new factory in the panama city : How would your answer modify if Engco sold its goods with title passing at the customer's location?
Describe statistical data on participation rates : Describe statistical data on participation rates, education and employment and income levels of individuals with disabilities
How much of engcos export gross profit : How would your answer modify if Engco sold its goods with title passing at the customer's location?
Evaluate oriole companys current income tax expense : Evaluate Oriole Company's current income tax expense. Evaluate Oriole Company's deferred income tax expense or benefit.
What kind of an accounting change is this : What kind of an accounting change is this? It indicates that TimeWarner rapidly changed its position with regard to these lawsuits. Is this a change in accounting principle?
Prepare the entries that fix error : Purpose the entries that fix this error. SAS usually depreciates assets like printing presses over five years.
Evaluate the appropriate discount factor using tables : Evaluate net annual cash inflow must the store generate for Anita to earn a 14 percent return over the 10-year period?
Sales of athletic shoes have on overall profitability : Suppose that if bowling shoes were dropped, sales of athletic shoes could drop by 10%. What impact would losing 10 percent of the sales of athletic shoes have on overall profitability?

Reviews

Write a Review

 

Taxation Questions & Answers

  Complete federal income tax return

Complete Phillip and Claire Dunphy's 2012 federal income tax return.

  Complete the subsequent tax returns

Complete the subsequent tax return's

  Prepare a tax research memorandum to convey your conclusions

Prepare a Tax Research Memorandum to convey conclusions

  Determine the effect on income before income taxes

Examine and determine each capitalization creiteria and evaluate what type of lease this is for Adden.

  Argument for using the amt to a taxpayers advantage

Prepare an argument for using the AMT to a taxpayer's advantage

  Describe the rules that apply to each property transaction

Describe the rules that apply to each property transaction

  Prepare a memorandum that outlines the tax consequences

Prepare a memorandum that outlines the tax consequences of each of the three alternative acquisitions

  Is the plant a partnership for federal income tax purposes

Consider the plant may elect out of Subchapter K...are mary, louise and nell subject to the self-employment tax on their distributive shares of the plants earnings, considering the output was purchased by mary, louise and nell rather than being di..

  Purpose a tax research memo

Purpose a Tax Research Memo in good form regarding the $25,000 relocation loan that Joanne Black described.

  Evaluate taxable income and the income tax liability

Evaluate taxable income and the income tax liability (before credits or prepayments) on a joint return

  Payment to the taxpayer

Brief statement in your own words of the facts of the cases.

  Evaluate the taxable income

Which of the subsequent statements about Ginger's hobby activity is/are correct?

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