Financial statements in accordance with gaap

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

Questions Cloud

Production for direct materials and conversion costs : From this information, compute the equivalent units of production for direct materials and conversion costs for the month. Use the FIFO costing method.

Result of partnership distribution : Hayden's outside basis in his interest in the HIGH Partnership is $420,000. In a proportionate nonliquidating distribution, the partnership distributes to him cash of $100,000, inventory

Computation of bonus on shares sold & share of bonus : Computation of bonus on shares sold & share of bonus to each partner and The bonus that is granted to Groh and Jackson equals

Determine the intrinsic value and time value of option : For each of the above dates, determine the intrinsic value and the time value of the option. and If the price of diesel fuel remained below $2.16 per barrel through November, calculate the effect on earnings traceable to the hedge.

Financial statements in accordance with gaap : 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.

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?

User Account

All Pages