1) CoA incurred a $ 32.000 NOLIN 2018. If in 201 compute the 2019 deduction Ch 5-7 32,000 NOLIN 2018. If in 2019 taxable income is $ 38.000 before NOL ceived $ 16,930 from repayment of a $ 15,000 loan plus interest How much income is recognized by company Co D is a calendar year, cash following cash payments Which of these is a calendar year cash basis taxpaver. During December it received the e current taxable income and if so, how much? -) $ 700 deposit received for rental equipment which must be returned at end of job 9 $ 888 prepaid rent for the 74 days between December 17 through February 26 5/6) Co E Book income before tax 9,882,590 Net permanent difference 447,600 Net temporary difference (802,100) Taxable income 9,528,090 What is the taxable expense and what is the taxable payable 7) Co E is an accrual base taxpayer. It received $ 100,000 to do landscaping work $ 20k in this year, $ 65k next year and $ 15k the year after How much should be recognized in each year 8) Co G purchased a total of $ 128,300 in 2018. Taxable income without a Section 179 deduction is $92,600 How much can be deducted as an expense 9) Company P has $ 198,300 book depreciation and $ 256,000 MACRS depreciations Is the book/tax difference favorable or unfavorable, and is it temporary or permanent 10) Which of the following result in a permanent differece between book and taxable income Business and meals expenses, domestic production, premium on key person life insurance 11) This year company X has advertising expenses of $ 100,000. What type of expenses is this on the tax statement 12) Company B organized June 1, began business on August 10. Company is calendar year for tax purposes. The corporation hincurs $ 25,160 of legal and other professional fees. which it is going to amortize over 15 years. What can it deduct in the first year taxes 13) Company C made 2 purchases during the year and is a calendar year taxpayer The first purchase cost $ 874,000 purchased on March 27 and $ the second is $ 660,000 purchased on December 14. How many months of MACRS depreciation does the company allow for each purchase 14) Company D has a $ 75,000 cash expenditure this year. (year 0). Compute the after tax cost if the item is capitalized over 3 years no mid year convention There is a 21% marginal tax rate and a 7% discount. What is after tax cost 15/16) Company E calendar year corporation placed the following assets into service Cost Period Date Mfr Equip 259,000 7 yrs 23-Apr Furniture 56,000 7 yrs 2-May Vehicles 225,000 5 yrs 3-Sep Office Equip 120,000 7 yrs 1-Dec Total 660,000
