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Bonus' statutory tax rates are 2 1 percent federal and an average state rate of 5 percent. Federal income taxes are not deductible in any
Bonus' statutory tax rates are percent federal and an average state rate of percent. Federal income taxes are not deductible in any of the states in which Bonus operates, but state income taxes are a proper federal tax deduction. Because of the deductibility of state taxes for federal, the combined tax rate paid by Bonus is state rate federal rate All of the states with which Bonus files income tax returns define taxable income in the same way. Using estimated payments, Bonus pays in full its federal and state income tax liabilities in the book and tax year in which net income occurs. Bonus has no foreignsource income or deductions. No tax rate changes have been enacted that will apply in future years. Bonus does not record a valuation allowance against its deferred tax assets in the current reporting period. Bonus holds only one carryforward to this tax year, for a state and federal NOL. Every year, there also is an amount for book cost of goods sold that are added to the UNICAP balance. Your Task Your task is to convert the trial balance into a worksheet that calculates both the current state and federal tax payable, and the total tax provision for Bonus. To do this you will utilize the book trial balance that is presented below. Bonus Corporation Condensed Trial Balance in $ million Year Ending tableRevenuesSalesCOGSGross Profit,,ExpensesAddition to bad debt reserves,tableNote: Specific accounts written off amountedto AdvertisingNote: Includes lobying costs of DepreciationMACRS would have allowed Fines paid,Legal and accounting services,Meals in fullSalaries Wages, Benefits,Taxes Sales, Property, Etc.,UtilitiesEmployee vacation accrued,Note: Vacation time used of Total Expenses,,Book Net Income PreTax Additional Notes: Federal and State NOL carryover from of $ million. Book cost of goods sold that would be added to inventory for UNICAP purposes of $ million. Bonus Corporation Provision for Income Tax Calculation Tax Year tableItemAmount,tableTempDifftablePermDiffNotesPreTax Net Income,Booktax differences, current tax payableUNICAPNOL CarryforwardBad DebtsDepreciation
Bonus' statutory tax rates are percent federal and an average state rate of percent. Federal income taxes are not deductible in any of the states in which Bonus operates, but state income taxes are a proper federal tax deduction. Because of the deductibility of state taxes for federal, the combined tax rate paid by Bonus is state rate federal rate All of the states with which Bonus files income tax returns define taxable income in the same way. Using estimated payments, Bonus pays in full its federal and state income tax liabilities in the book and tax year in which net income occurs.
Bonus has no foreignsource income or deductions. No tax rate changes have been enacted that will apply in future years. Bonus does not record a valuation allowance against its deferred tax assets in the current reporting period.
Bonus holds only one carryforward to this tax year, for a state and federal NOL. Every year, there also is an amount for book cost of goods sold that are added to the UNICAP balance.
Your Task
Your task is to convert the trial balance into a worksheet that calculates both the current state and federal tax payable, and the total tax provision for Bonus. To do this you will utilize the book trial balance that is presented below.
Bonus Corporation
Condensed Trial Balance in $ million Year Ending
tableRevenuesSalesCOGSGross Profit,,ExpensesAddition to bad debt reserves,tableNote: Specific accounts written off amountedto AdvertisingNote: Includes lobying costs of DepreciationMACRS would have allowed Fines paid,Legal and accounting services,Meals in fullSalaries Wages, Benefits,Taxes Sales, Property, Etc.,UtilitiesEmployee vacation accrued,Note: Vacation time used of Total Expenses,,Book Net Income PreTax
Additional Notes:
Federal and State NOL carryover from of $ million.
Book cost of goods sold that would be added to inventory for UNICAP purposes of $ million.
Bonus Corporation
Provision for Income Tax Calculation
Tax Year
tableItemAmount,tableTempDifftablePermDiffNotesPreTax Net Income,Booktax differences, current tax payableUNICAPNOL CarryforwardBad DebtsDepreciation
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