What amount should be reported as income tax expense

Assignment Help Accounting Basics
Reference no: EM132744512

Problem 1: Verna Co. reported profit before tax for the six mos. Ended 6/30/2013 at 5,000,000. However the business is seasonal and profit before tax for the six mos. Ended 12/31/2013 is almost certain to be 9,000,000. Profit before tax equals taxable profit for this entity. The entity operates in a country where income tax is at a rate of 30% if annual profit is below 11,000,000 and a rate of 35% where annual profit exceeds 11,000,000. These tax rates apply to the entire profit for the year. What amount should be reported as income tax expense in the interim FS for the half yr ended 6/30/2013?

Reference no: EM132744512

Questions Cloud

Pr?vid? five ?x?mpl?s ?f g?v?rnm?nt ?cc?unting pr?c?ss?s : Pr?vid? 5 ?x?mpl?s ?f g?v?rnm?nt ?cc?unting pr?c?ss?s th?t c?n b? fully ?ut?m?t?d with?ut hum?n int?rv?ntion, 5 ?x?mpl?s ?f ?cc?unting pr?c?ss?s
Leader effectiveness depend primarily on traits or behaviors : Does leader effectiveness depend primarily on traits or behaviors? How does power, conflict, and influence impact the success of leaders?
What is the ending inventory under the absorption costing : ABS CBN began the year with no inventory, produced 12,000 units and sold 11,500 units. What is the ending inventory under the absorption costing?
Compute what is the depreciation charge : Inclusive of inflation, the actual amount expected to be received on disposal was estimated at P900,000. What is the depreciation charge for 2013?
What amount should be reported as income tax expense : Tax rates apply to the entire profit for the year. What amount should be reported as income tax expense in the interim FS for the half yr ended 6/30/2013?
Provide journal entry by Cuddly Ltd on July : The lessee intends to return the equipment at the end of the lease term. Provide journal entry(s) by Cuddly Ltd on 1 July 2019
What amount should recognized in profit in respect of staff : The terms and conditions of employment, What amount should be recognized in profit or loss in respect of the staff bonus for the half year ended 6/30/2013?
What amount of provision should charged in second quarters : Sales for the second quarter amounted to 15,000,000. What amount of provision should be charged in the second quarters interim income statement?
Prepare the income statement ending with gross margin : Prepare the income statement ending with gross margin. Compute the gross profit as a percentage of sales from this income statement

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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