1.99 See Answer

Question: Based on the facts and results of

Based on the facts and results of Problems 30-36, provide the income tax footnote rate reconciliation for Relix. Data from Problem 30: Relix, Inc., is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year. Based on this information, determine Relix's net deferred tax asset or net deferred tax liability at year-end. Assume a 21% Federal corporate tax rate and no valuation allowance.
Based on the facts and results of Problems 30-36, provide the income tax footnote rate reconciliation for Relix.

Data from Problem 30:

Relix, Inc., is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year. Based on this information, determine Relix's net deferred tax asset or net deferred tax liability at year-end. Assume a 21% Federal corporate tax rate and no valuation allowance.


Data from Problem 31:

Based on the facts and results of Problem 30 and the beginning-of-the year book-tax basis differences listed below, determine the change in Relix's deferred tax assets for the current year.


Data from Problem 32:

Based on the facts and results of Problem 30 and the beginning-of-the-year book-tax basis differences listed below, determine the change in Relix's deferred tax liabilities for the current year.


Data from Problem 33:


Based on the facts and results of Problems 30-32, determine Relix's change in net deferred tax asset or net deferred tax liability for the current year. Provide the journal entry to record this amount.


Data from Problem 34:

In addition to the temporary differences identified in Problems 30-33, Relix reported two permanent differences between book and taxable income. It earned $2,375 in tax-exempt municipal bond interest, and it incurred $780 in nondeductible business meals expense. Relix's book income before tax is $4,800. With this additional information, calculate Relix's current tax expense.

Data from Problem 35:

Provide the journal entry to record Relix's current tax expense as determined in Problem 34.

Data from Problem 36:

Based on the facts and results of Problems 30-35, calculate Relix's total provision for income tax reported in its financial statements, and determine its book net income after tax.

Data from Problem 31: Based on the facts and results of Problem 30 and the beginning-of-the year book-tax basis differences listed below, determine the change in Relix's deferred tax assets for the current year.
Based on the facts and results of Problems 30-36, provide the income tax footnote rate reconciliation for Relix.

Data from Problem 30:

Relix, Inc., is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year. Based on this information, determine Relix's net deferred tax asset or net deferred tax liability at year-end. Assume a 21% Federal corporate tax rate and no valuation allowance.


Data from Problem 31:

Based on the facts and results of Problem 30 and the beginning-of-the year book-tax basis differences listed below, determine the change in Relix's deferred tax assets for the current year.


Data from Problem 32:

Based on the facts and results of Problem 30 and the beginning-of-the-year book-tax basis differences listed below, determine the change in Relix's deferred tax liabilities for the current year.


Data from Problem 33:


Based on the facts and results of Problems 30-32, determine Relix's change in net deferred tax asset or net deferred tax liability for the current year. Provide the journal entry to record this amount.


Data from Problem 34:

In addition to the temporary differences identified in Problems 30-33, Relix reported two permanent differences between book and taxable income. It earned $2,375 in tax-exempt municipal bond interest, and it incurred $780 in nondeductible business meals expense. Relix's book income before tax is $4,800. With this additional information, calculate Relix's current tax expense.

Data from Problem 35:

Provide the journal entry to record Relix's current tax expense as determined in Problem 34.

Data from Problem 36:

Based on the facts and results of Problems 30-35, calculate Relix's total provision for income tax reported in its financial statements, and determine its book net income after tax.

Data from Problem 32: Based on the facts and results of Problem 30 and the beginning-of-the-year book-tax basis differences listed below, determine the change in Relix's deferred tax liabilities for the current year.
Based on the facts and results of Problems 30-36, provide the income tax footnote rate reconciliation for Relix.

Data from Problem 30:

Relix, Inc., is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year. Based on this information, determine Relix's net deferred tax asset or net deferred tax liability at year-end. Assume a 21% Federal corporate tax rate and no valuation allowance.


Data from Problem 31:

Based on the facts and results of Problem 30 and the beginning-of-the year book-tax basis differences listed below, determine the change in Relix's deferred tax assets for the current year.


Data from Problem 32:

Based on the facts and results of Problem 30 and the beginning-of-the-year book-tax basis differences listed below, determine the change in Relix's deferred tax liabilities for the current year.


Data from Problem 33:


Based on the facts and results of Problems 30-32, determine Relix's change in net deferred tax asset or net deferred tax liability for the current year. Provide the journal entry to record this amount.


Data from Problem 34:

In addition to the temporary differences identified in Problems 30-33, Relix reported two permanent differences between book and taxable income. It earned $2,375 in tax-exempt municipal bond interest, and it incurred $780 in nondeductible business meals expense. Relix's book income before tax is $4,800. With this additional information, calculate Relix's current tax expense.

Data from Problem 35:

Provide the journal entry to record Relix's current tax expense as determined in Problem 34.

Data from Problem 36:

Based on the facts and results of Problems 30-35, calculate Relix's total provision for income tax reported in its financial statements, and determine its book net income after tax.

Data from Problem 33: Based on the facts and results of Problems 30-32, determine Relix's change in net deferred tax asset or net deferred tax liability for the current year. Provide the journal entry to record this amount.
Based on the facts and results of Problems 30-36, provide the income tax footnote rate reconciliation for Relix.

Data from Problem 30:

Relix, Inc., is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year. Based on this information, determine Relix's net deferred tax asset or net deferred tax liability at year-end. Assume a 21% Federal corporate tax rate and no valuation allowance.


Data from Problem 31:

Based on the facts and results of Problem 30 and the beginning-of-the year book-tax basis differences listed below, determine the change in Relix's deferred tax assets for the current year.


Data from Problem 32:

Based on the facts and results of Problem 30 and the beginning-of-the-year book-tax basis differences listed below, determine the change in Relix's deferred tax liabilities for the current year.


Data from Problem 33:


Based on the facts and results of Problems 30-32, determine Relix's change in net deferred tax asset or net deferred tax liability for the current year. Provide the journal entry to record this amount.


Data from Problem 34:

In addition to the temporary differences identified in Problems 30-33, Relix reported two permanent differences between book and taxable income. It earned $2,375 in tax-exempt municipal bond interest, and it incurred $780 in nondeductible business meals expense. Relix's book income before tax is $4,800. With this additional information, calculate Relix's current tax expense.

Data from Problem 35:

Provide the journal entry to record Relix's current tax expense as determined in Problem 34.

Data from Problem 36:

Based on the facts and results of Problems 30-35, calculate Relix's total provision for income tax reported in its financial statements, and determine its book net income after tax.

Data from Problem 34: In addition to the temporary differences identified in Problems 30-33, Relix reported two permanent differences between book and taxable income. It earned $2,375 in tax-exempt municipal bond interest, and it incurred $780 in nondeductible business meals expense. Relix's book income before tax is $4,800. With this additional information, calculate Relix's current tax expense. Data from Problem 35: Provide the journal entry to record Relix's current tax expense as determined in Problem 34. Data from Problem 36: Based on the facts and results of Problems 30-35, calculate Relix's total provision for income tax reported in its financial statements, and determine its book net income after tax.





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Таx Debit/(Credit) Вook Debit/(Credit) Assets Cash $ 500 $ 500 Accounts receivable 8,000 8,000 Buildings 750,000 750,000 Accumulated depreciation (450,000) (380,000) Furniture & fixtures 70,000 70,000 Accumulated depreciation (46,000) $332,500 (38,000) $410,500 Total assets Liabilities Accrued litigation expense Note payable Total liabilities ($ 50,000) (78,000) ($128,000) -0- (78,000) ($ 78,000) Stockholders' Equity Paid-in capital Retained earnings ($ 10,000) (244,500) ($332,500) ($ 10,000) (272,500) ($410,500) Total liabilities and Stockholders' Equity Beginning of Year Accrued litigation expense $34,000 $34,000 X 21% $ 7,140 Subtotal Applicable tax rate Gross deferred tax Asset Beginning of Year ($57,000) Building-accumulated depreciation Furniture & fixtures-accumulated depreciation (4,200) ($61,200) X 21% Subtotal Applicable tax rate Gross deferred tax liability ($12,852) Таx Debit/(Credit) Вook Debit/(Credit) Assets Cash $ 500 $ 500 Accounts receivable 8,000 8,000 Buildings 750,000 750,000 Accumulated depreciation (450,000) (380,000) Furniture & fixtures 70,000 70,000 Accumulated depreciation (46,000) $332,500 (38,000) $410,500 Total assets Liabilities Accrued litigation expense Note payable Total liabilities ($ 50,000) (78,000) ($128,000) -0- (78,000) ($ 78,000) Stockholders' Equity Paid-in capital Retained earnings ($ 10,000) (244,500) ($332,500) ($ 10,000) (272,500) ($410,500) Total liabilities and stockholders' equity


> Debra acquired the following new asset5 during 2018: Determine Debra's cost recovery deductions for the current year. Debra does nor elect immediate expensing under § 179. She does not claim any available additional first-year depreciation.

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> On December 23, 2018, the directors of Partridge Corporation, an accrual basis calendar year taxpayer, authorized a cash contribution of $10,000 to the American Cancer Association. The payment is made on April 14, 2019. Can Partridge deduct the charitabl

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> What purpose is served by Form 8857? Read the directions to the form, and see IRS Publication 971 for additional information.

> In 2015, John opened an investment account with Randy Hansen, who held Critical Thinking himself out to the public as an investment adviser and securities broker. John contributed $200,000 to the account in 2015. John provided Randy with a power of attor

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> Robin Corporation is owned as follows: Robin is on the accrual basis, and Isabelle and Peter are on the cash basis. Isabelle and Peter each loaned Robin Corporation $40,000 out of their separate funds. On December 31, 2018, Robin accrued interest at 7%

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> Find a website, other than the IRS website, that discusses the taxation of short sales of securities.

> Joseph Thompson is president and sole shareholder of Jay Corporation. In December 2018, Joe asks your advice regarding a charitable contribution he plans to have the corporation make to the University of Maine, a qualified public charity. Joe is consider

> Dan Simms is the president and sole shareholder of Simms Corporation, 1121 Madison Street, Seattle, WA 98121. Dan plans for the corporation to make a charitable contribution to the University of Washington, a qualified public charity. He will have the co

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> Phillips, Inc., a cash basis C corporation, completes $100,000 in sales for year 1, but only $75,000 of this amount is collected during year 1. The remaining $25,000 from these sales is collected promptly during the first quarter of year 2. The applicabl

> Drake Appliance Company, an accrual basis taxpayer, sells home appliances and service contracts. Determine the effects of each of the following transactions on the company's 2018 gross income assuming that the company uses any available options to defer

> LawnCo and TreeCo operate in the same industry, and both report a 300% Communications effective tax rate (Federal, state, and global). Their book income and current, deferred, and total tax expense are reported below. ShrubCo is a competitor of both of

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> Broadbill Corporation, a calendar year C corporation, has two unrelated cash method shareholders: Marcia owns 51% of the stock, and Zack owns the ren1aining 49"A. Each shareholder is employed by the corporation at an annual salary of $240,000. During 201

> Lupe, a cash basis taxpayer, owns 55% of the stock of Jasper Corporation, a calendar year accrual basis C corporation. On December 31, 2018,Jasper accrues a performance bonus of $100,000 to Lupe that it pays to him on January 15, 2019. In which year can

> Determine the taxpayer's gross income for tax purposes in each of the following situations. a. Deb, a cash basis taxpayer, traded a corporate bond with accrued interest of $300 for corporate stock with a fair market value of $12,000 at the time of the ex

> Ted and Marvin Brown purchased an apartment building in 2007 as equal tenants in common. After a hectic decade of co-ownership, the brothers decided that their business association should be terminated. This led to the sale of the apartment building and

> KellerCo reports $5 million of U.S. taxable income, the same as its book income, as there are no temporary book-tax differences this year. KellerCo is subject to a 21% Federal income tax rate. Its book-tax differences include the following. Construct K

> Identify whether each of the following items typically constitutes positive or negative evidence when a manufacturing entity assesses whether a valuation allowance is required or should be adjusted for its net operating losses. a. Product orders are inc

> Does the taxpayer's effective tax rate increase or decrease when: a. It creates a valuation allowance against the deferred tax asset for a net operating loss. b. It releases a valuation allowance against the deferred tax asset for a net operating loss?

> Based on the facts and results of Problems 38-44, provide the incon1e tax footnote rate reconciliation for Kantner. Data from Problem 38: Kantner, Inc., is a domestic corporation with the following balance sheet for book and tax purposes at the end of

> Based on the facts and results of Problems 38-43, calculate Kantner's total provision for income tax expense reported on its financial staten1ent and its book net income after tax. Data from Problem 38: Kantner, Inc., is a domestic corporation with the

> Provide the journal entry to record Kantner's current tax expense as determined in Problem 42. Data from Problem 42: In addition to the temporary differences identified in Problems 38-41, Kantner reported two permanent book-tax differences. It earned $

> In addition to the temporary differences identified in Problems 38-41, Kantner reported two permanent book-tax differences. It earned $7,800 in tax-exempt municipal bond interest, and it reported $850 in nondeductible business meals expense. Kantner's bo

> Based on the facts and results of Problems 38-40, determine Kantner's change in net deferred tax asset or net deferred tax liability for the current year. Provide the journal entry to record this amount. Data from Problem 38: Kantner, Inc., is a domest

> Based on the facts and results of Problem 38 and the beginning-of the-year book-tax basis differences listed below, determine the change in Kantner's deferred tax liabilities for the current year. Data from Problem 38: Kantner, Inc., is a domestic cor

> Based on the facts and results of Problem 38 and the beginning-of-the-year book-tax basis difference listed below, determine the change in Kantner's deferred tax assets for the current year. Data from Problem 38: Kantner, Inc., is a domestic corporati

> Ali owns 100 shares of Brown Corporation stock. He purchased the stock at five different times and at five different prices per share as indicated. On April 28, 2018, Ali will sell 40 shares of Brown stock for $40 per share. All of Ali's shares are hel

> Kantner, Inc., is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year. Based on this information, determine Kantner's net deferred tax asset or net deferred tax liability at year-end. Assume a 21% Fede

> Based on the facts and results of Problems 30-35, calculate Relix's total provision for income tax reported in its financial statements, and determine its book net income after tax. Data from Problem 30: Relix, Inc., is a domestic corporation with the

> Provide the journal entry to record Relix's current tax expense as determined in Problem 34. Data from Problem 34: In addition to the temporary differences identified in Problems 30-33, Relix reported two permanent differences between book and taxable

> In addition to the temporary differences identified in Problems 30-33, Relix reported two permanent differences between book and taxable income. It earned $2,375 in tax-exempt municipal bond interest, and it incurred $780 in nondeductible business meals

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> Using the facts of Problem 12, determine the 2018 end-of-year balance in Mini's deferred tax asset and deferred tax liability balance sheet accounts. Data from Problem 12: Mini, Inc., earns pretax book net income of $750,000 in 2018. Mini deducted $20,

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> Determine Amos's gross income in each of the following cases. a. In the current year, Amos purchased an automobile for $25,000. As part of the transaction, An1os received a $1,500 rebate from the manufacturer. b. Amos sold his business. In addition to th

> Your friend Hui is an investor in blue coin, a virtual currency. Indicate whether and how she is subject to Federal income taxation in the following circumstances. a. Earns S 1,000 in blue coin from mining. b. Purchases $1,000 in blue coin from another f

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> Describe the purchase method in accounting for acquisitions.

> Describe the empirical evidence on the actual gains or losses resulting from mergers.

> Describe the financing synergies of M&A.

> In what ways is DCF capex analysis similar to valuing common shares, and in what ways is it different?

> What is the difference between a tangible asset and an intangible asset?

> Describe the economies of scale of M&A.

> Describe horizontal M&A, vertical M&A, and conglomerate.

> Describe the possible market price change after a tender offer and the possible reasons.

> Briefly describe three common defensive tactics against a takeover and the difference between U.S. and Canadian practice on poison pills.

> Describe the process of a friendly acquisition.

> Sharon McKee has been appointed finance minister and is convinced that the leasing business is just a way to avoid paying taxes. She asked her department officials to evaluate the cash flow effects for both the lessee and the lessor in financial leases.

> The Bynum Private Equity group has just made a tender offer for, at most, 60 percent of Vendall Company. Vendall has 1,000 shares outstanding. Mr. VanDuun is a shareholder of Vendall and has tendered his shares. For each situation below, indicate the num

> List and briefly describe the two types of takeovers.

> What mistakes can occur if firms do not make the appropriate adjustments?

> How and why do we adjust the discount rate for multi-divisional firms?

> Briefly explain “the Greeks” (delta, theta, Vega, and rho) in option pricing.

> Charles Zhang, the owner of a small moving company, has decided that economic conditions are perfect for him to expand his business. Such an expansion will require him to buy five new moving trucks at a total cost of $275,000. Mr. Zhang’s company has $8,

> What are the cash flow from operations and the free cash flow implications of an operating versus a financial lease?

> Briefly describe operating LCs, revolving LCs, and term loans.

> What are risk-neutral probabilities?

> Explain how to create a risk-free portfolio from the stock and the option’s payoff.

> Expedic Utility Corp. needs to increase its electricity production capacity. It is interested in a slightly used reactor located in Ontario. It has been offered two alternatives: buy the reactor for $16 billion (and hold onto it for 20 years) or lease it

> Why is IPO underpricing less severe in Canada than it is in the United States? What causes underpricing?

> Carla is the CEO of Superior Sausage Company (a Canadian firm, listed on the Toronto Stock Exchange) and believes that the best way for the company to grow is through acquisitions. She has identified a likely target, Bunns & Bagels (B&B), which is also l

> A used car that currently costs $25,000 will have a market value of $8,000 in four years. As a student, you cannot afford to pay $25,000, but you want to have a car while you are going to university for the next four years. Your father agrees to lend you

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> Calculate the post‐merger EPS and market value of equity, assuming no synergies arise in the following acquisition settled in cash. Analyze the difference, if there is any. Further, calculate the new P/E ratio and share price for post&a

> ABC Inc. is planning to purchase DEF Inc. in one of two ways: (1) by paying $24 per share in cash; or (2) by giving DEF ’ s shareholders two shares in the new combined firm ABC‐DEF for each share of DEF. Prior to the merger, DEF had 500,000 shares outsta

> In Practice Problem 33, if the free cash flow to equity grows at 8 percent for the first two years and then grows at 5 percent indefinitely, what is the market value of the firm now? (Round your answer to the nearest dollar.)

> Calculate the market value of the firm given the following additional information: cost of equity is 8.25 percent, free cash flow to equity grows at 6 percent indefinitely; total debt outstanding = $1,000,000; increase in current assets = $400,000; incre

1.99

See Answer