Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. using the information from_ nilson inc. had accoun

Using the information from_ Nilson Inc. had accounting income of $156,000 in 2017. Included in the calculation...

Free

80.2K

Verified Solution

Question

Accounting

Using the information from_

Nilson Inc. had accounting income of $156,000 in 2017. Includedin the calculation of that amount is the CEO's life insuranceexpense of $5,000, which is not deductible for tax purposes. Inaddition, the undepreciated capital cost (UCC) for tax purposes is$14,000 lower than the net carrying amount of the property, plant,and equipment, although the amounts were equal at the beginning ofthe year. Prepare Nilson's journal entry to record 2017 taxes,assuming IFRS and a tax rate of 25%.

_calculate the effective rate of income tax for Nilson Inc. for2017. Also make a reconciliation from the statutory rate to theeffective rate, using percentages.

Answer & Explanation Solved by verified expert
4.4 Ratings (1080 Votes)

Particulars $
Tax expenses @ 25% on $156,000                                        39,000
Accouting income 156,000
Add: Life insurance expenses                                          5,000
Less: Undepreciated capital cost                                        14,000
Earning before tax expenses 147,000
Less;Tax expenses                                           39,000
Earning after taxes                                     108,000
Effective tax rate = Tax expenses divide by
                                                                      -   Earnings before tax
EFTR 26.53%

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Question 1 An unmarried dependent taxpayer of another taxpayer is required to file a 2017 federal income...

Accounting
Q

Using the set of smallest whole number coefficients to balance the redox equation MnO4- + NO2- ---> MnO2...

Chemistry
Q

How do you define identity? I need a long answer, well specified the concept.

Psychology
Q

Cost of Units Completed and in Process The charges to Work in Process—Assembly Department for a...

Accounting
Q

7 A very long metallic hollow pipe of length 1 and radius r I is...

Physics
Q

Find an equation of the tangent line to the graph of y = g(x) at...

Calculus
Q

Jam places $10,000 in a bank account that pays 13.5% compounded continuously. After 2 years...

Algebra
Q

Find the equation of the line whose slope is 4 and y intercept is 0...

Algebra
Q

On October 1, 2024, Ayayai Corp issued $720,000,5%,10 year bonds at...

Accounting
Q

Question 4 Time: 20 minutes Total: 10 marks Annual cash inflows from two...

Accounting
Q

Morrison company incurred the following cost in 2022. All figures in $1,000. Administrative Salaries Advertising...

Accounting
Q

5.6-5.7 5.5 In the 1980s, Tennessee conducted an experiment in which kindergarten students were...

Accounting