Financial statements in accordance with gaap

Assignment Help Accounting Basics

Reference no: EM1310844

Texark Inc., a calendar year taxpayer, reported $5,210,300 net income before tax on its financial statements prepared in accordance with GAAP. The corporation's records reveal the following information.

Depreciation expense per books was $713,700, and MACRS depreciation was 662,000.
Texark exchanged old equipment (-0- tax basis; $44,200 book basis) for new equipment (FMV $50,000). Book gain was included in book income, although the exchange was non-taxable for tax purposes.
Texark received a $100,000 insurance reimbursement for the destruction of machinery with a $29,000 tax basis and a $70,000 book basis. Texark spent $110,000 to replace the machinery before year-end.

Reference no: EM1310844

Previous Q& A

What would the effect on earnings

Prepare all journal entries necessary through June to record the above transactions and events. and what would the effect on earnings have been if the forecasted purchase were not hedged?

Computation of interest expense for the first semi-annual

Computation of interest expense for the first semi-annual interest period under SLM on bonds issued

Specific labour and overhead costs

What specific labour and overhead costs would be incurred, both before and after the split off point? Again, be specific here in terms of what you think would need to be incurred.

Financial factors of management

What financial factors should management consider when deciding whether to sell a product at the split off point or process it further?

Evaluate the confidence interval

Evaluate the 95% confidence interval for the population proportion p of all Americans who drink beer, wine, or hard liquor, at least occasionally and interpret your result.

Computation of gain or loss on sale of investments

Computation of gain or loss on sale of investments and Journal entries to record purchase & sale of company's Common & Treasury stocks

Production of joint products

Discuss a production process that you think would involve the production of joint products, being sure to address the following points:

Evaluate the sample size needed

Finding the sample size of 95% level confidence - Find the sample size needed

Determine cost to record the new asset from exchange

Chi Corporation trades an asset with a book value of $20,000 for another asset with a fair market value of $15,000. Find out Chi s cost to record the new asset from the exchange.

Finding sample size of 99% confidence level

Finding sample size of 99% confidence level and If the confidence level is increased to 99%, would the sample size needed increase or decrease?

Reviews

Write a Review

Message

Similar Q& A

Finding useful life of equipment

Werner Chemical, Inc., leased a protein analyzer on September 30, 2013-Depreciation is recorded on a straight-line basis at the end of each fiscal year. The useful life of the equipment is five years.

Financing sources city enterprise fund

A city's Enterprise Fund issued revenue bonds with a face value of $10,000,000-the Enterprise Fund will report total other financing sources in the amount of

What technique of accounting should web-browser use

What technique of accounting should Web-Browser use to account for its investment in Internet Access at 31 st December, 1998, and June 30, 1999 (i.e., cost or equity method)?

Compute the depreciation expense

Survival Industries, Inc. purchased a boat at a cost of $360,000-Compute the depreciation expense for 2014

Issues or problems when determine the actual cost

Explain three issues or problems which a company could face when trying to find out the actual cost of the good or service which is to be used in the cost of goods sold.

Journal entries-perpetual inventory system

Prepare the journal entries to record the following transactions in Hunt Ltd’s records using the perpetual inventory system. (For multiple debit or credit entries, list accounts in order of magnitude.)

Phases of the retirement plan

Kim is measuring her retirement plan. Assume she has $500,000 when she retires in an account that earns at an effective annual rate of 9%.

Determining the basis for loss

Marsha Moore gave property with an adjusted basis of $28,000 to Alfred when the fair market value of the property was $25,000-What is Alfred’s basis for gain? What is his basis for loss?

Financial reporting and tax purposes

Maine Company reported a pretax operating loss of $150,000 for financial reporting and tax purposes in 2012. The enacted tax rate is 40% for 2012 and subsequent years.

Matter of accountability

Classify the controls that you just identified above as either preventive, detective, or corrective controls. How does the matter of accountability (tracing transactions to specific agencies) affect the problem?

Amount of revenue for constructing large hotel

Wynn, Inc. has contract to construct a large hotel for $12,000,000. The contract was signed on the month January 2, 2010 and it was expected that the hotel would be complete on the month of December 31, 2013. Under these situations, what amount of ..

Generally accepted accounting principles

Determine that the financial statements present fairly in accordance with generally accepted accounting principles.

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!

Submit Assignment

User Account

All Pages