Concord Corporation was incorporated and began business on January 1, 2020. It has been successful and now requires a bank loan for additional capital to finance an expansion. The bank has requested an audited income statement for the year 2020 using IFRS. The accountant for Concord Corporation provides you with the following income statement, which Concord plans to submit to the bank: Concord Corporation Income Statement Sales revenue $ 844,000 Dividend revenue 33,000 Gain on recovery of earthquake loss (unusual) 27,000 Unrealized holding gain on FV-OCI equity investments 5,000 909,000 Less: Selling expenses $ 138,000 Cost of goods sold 507,000 Advertising expense 12,000 Loss on inventory due to decline in net realizable value 35,000 Loss on discontinued operations 46,000 Administrative expenses 72,000 810,000 Income before income tax 99,000 Income tax expense 19,800 Net income $ 79,200 Concord had 100,000 common shares outstanding during the year and has an effective tax rate of 20%. Gains/losses on FV-OCI equity investments are not recycled through net income. (b) Prepare a revised single-step statement of comprehensive income. (Round percentage to 0 decimal places for intermediate calculations, e.g. 52% and per share answers to 2 decimal places, e.g. 52.75.)
Which of the following is not an acceptable method of determining the required annual payment of federal income tax for corporations? A) 100 percent of the prior year's tax liability (with a few exceptions) B) 100 percent of the current year's tax liability C) 100 percent of the estimated current year tax liability using the annualized income method D) All of the choices are acceptable methods of determining the required annual payment of federal income tax for corporations. Explain. Explain.
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