Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

hello i am stuck on the line about bad debt C CORPORATION BOOK-TO-TAX RECONCILIATION. Western Corporation, an accrual basis, calendar-year C corporation, began operations on

hello i am stuck on the line about bad debtimage text in transcribed

C CORPORATION BOOK-TO-TAX RECONCILIATION. Western Corporation, an accrual basis, calendar-year C corporation, began operations on January 2, 2000. For each item below, determine the 2010 Schedule M-1 adjustment to reconcile book income to taxable income, i.e., the amount and the effect ( + or -). Net income per books $1,000,000 Provision for Federal income taxes, $320,000 Municipal bond interest, $20,000 During 2010, Western increased its allowance for uncollectible accounts by $25,000; actual bad debts written off in 2010 were $32,000. Western reported depreciation for financial purposes of $90,000; MACRS for the year was $129,000 Western acquired another corporation in 2007, paying $600,000 for goodwill. Western recorded a goodwill impairment loss of $30,000 for financial purposes in 2010. In December 2009, Western received $35,000 as an advance payment for an order from a customer. Western reported the $35,000 as a liability (unearned income) on its balance sheet at 12/31/09 and as earned income in 2010. In December 2010, Western received $30,000 as an advance payment for an order from a customer. Western reported the $30,000 as a liability (unearned income) on its balance sheet at 12/31/10. Western reported gains of $30,000 and losses of $38,000 from the sale of investments in its "Other Revenues & Expenses" section of its income statement. Western deducted a $10,000 excess charitable contribution carryover from 2009 on its 2010 tax return. Western received dividend income from a 25%-owned corporation totaling $60,000. Western reported $25,000 as its U.S. production activities deduction on its 2010 income tax return. In May 2010, Western paid a $10,000 fine to a local government for violating a local ordinance. Taxable Income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding Financial Accounting

Authors: Christopher D. Burnley

3rd Canadian Edition

1119715474, 9781119715474

More Books

Students also viewed these Accounting questions

Question

Describe the concept of corporate social responsibility.

Answered: 1 week ago

Question

Explore the concept of business ethics.

Answered: 1 week ago

Question

Discuss human resource management issues for small businesses.

Answered: 1 week ago