Franklin taxable income

Assignment Help Accounting Basics
Reference no: EM13144097

The following information relates to Franklin Freightways for its first year of operations (data in millions of dollars):

Pretax accounting income: $300
Pretax accounting income included:
Overweight fines (not deductible for tax purposes) 6
Depreciation expense 64
Depreciation in the tax return using MACRS: 112

The applicable tax rate is 37%. There are no other temporary or permanent differences.

Franklin's taxable income is:

a) $258.

b) $252.

c) $112.

d) $48.

Reference no: EM13144097

Questions Cloud

How is the value of a bond determined : How is the value of a bond determined? What is the value of a 10- year, $1000 par value bond with a 10% annual coupon if its required rate of return is 10%
Normative and informational social influence : Explain how both normative and informational social influence worked to convince Stanley Milgram's (1974) participants to deliver powerful shocks to a hapless learner. How did replications of the original study demonstrate the role of normative and i..
Explain what is the percent composition of sodium carbonate : The mass of the sample before heating was 3.327g and after heating the mass was 2.432g. What is the percent composition of sodium carbonate in the original mixture?
Value of the ten-year bond over time : What would happen to the value of the 10-year bond over time if the required rate of return remained at 13%? If it remained at 7%? (Hint: With a financial calculator, enter PMT, 1/YR, FV, and N, and then change N to see what happens to the PV as t..
Franklin taxable income : The following information relates to Franklin Freightways for its first year of operations (data in millions of dollars):
How cognitive dissonance theory : Compare and contrast how cognitive dissonance theory and self-perception theory would explain the Festinger and Carlsmith (1959) $1/$20 experiment. Given that both theories can explain these results, in which situations is dissonance theory more like..
Merchandise was delivered fob shipping point : Purchases inventory costing $5,600 on account from Smoot Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $500 were paid in cash.
Calculate the molar mass of the biomolecule : A 2.30-g sample of a large biomolecule was dissolved in 16.0 g of carbon tetrachloride. The boiling point of this solution was determined to be 77.85°C.
How many grams of carbon dioxide will be produced : when carbon is burned in the presence of oxygen, the carbon and oxygen combine to produce carbon dioxide. if you start with 3 grams of carbon and 8 grams of oxygen and they react completely, how many grams of carbon dioxide will be produced?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Forecast the separate financial statements

Forecast the separate financial statements of Parent, Inc. Using Ms. Franklin's assumptions and Parent's 2008 financial statements, prepare pro forma 2009 financial statements for Parent, Inc., assuming that the acquisition is not attempted.

  Problem related to sole-proprietorship business dealing

You have been running a sole-proprietorship business dealing in cosmetic products. You have been accurately recording all your sale and purchase transactions in journals and using the journals in the general ledger accounts.

  What are tax loopholes

What are tax loopholes? How do loopholes arise? Do you think it is ethical to take advantage of tax loopholes? - Answer in 150-200 words.

  Risk premium and capital asset pricing model

Suppose Intel stock has a beta of 2.16, whereas Boeing stock has a beta of 0.69. If the risk-free interest rate is 4% and the expected return of the market portfolio is 10%,

  Preparing a cash distribution plan problem

Prepare a cash distribution plan as of September 30, 2009, showing how much cash each partner will receive if the offer to sell the assets is accepted.

  Prepare journal entries to record the copier sale

prepare journal entries to record (a) the copier's sale; (B) the adjustment on December 31,2011, to recognize the warranty expense; and (c)the repairs that occur in November 2012.

  What are some advantage of issuing common stock

What are some advantage of issuing common stock as opposed to bonds? What are some disadvantages?

  Can george claim andy as a dependent

George contributed $3,000 (food, shelter, and medical care) toward the support of his nephew, Andy, who lives with him. Andy earned $1,000 from a part-time job and received a $2,000 scholarship to attend a local university. Can George claim Andy a..

  Information regarding mixed cost

The Tyson Company has provided the following information: Using the high-low method, calculate the total fixed factory overhead cost and the variable factory overhead cost per direct labor hour.

  What is the total cash paid to the preferred stockholders

Assume that Corporation X has 20,000 shares of $10 par value cumulative 6% preferred stock and 5,000 shares of common stock outstanding. No dividends were paid in 2009 and 2010. In 2011, the board of directors declares dividends of $50,000. What i..

  Why does a stockholder prefer a high-volatility project

Why does a stockholder prefer a high-volatility project? Even though is will maximize the expected value of the company's equity, and therefore increase the value of the stockholder's shares, won't there also be a greater risk of loss on a project..

  Theory of corporate governance

Identify and briefly explain both a theory of corporate governance that supports a formal regulatory approach and a theory that supports a voluntary, self -regulation approach.

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