Business, 16.04.2021 02:30 colemanjosiah03

Hawkins Inc. had pre-tax accounting income of $1,800,000 and a tax rate of 35% in 2017, its first year of operations. During 2017 the company had the following transactions: Received rent from Barrett Co. for 2018 $64,000 Municipal bond income $80,000 Depreciation for tax purposes in excess of book depreciation $40,000 Installment sales revenue to be collected in 2018 $108,000 For 2017, what is the amount of income taxes payable for Hawkins Inc.

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Answer from: sagetpc68741

Hawkins Inc.

For 2017, the amount of income taxes payable for Hawkins Inc. is:

= $572,600.

Explanation:

a) Data and Calculations:

2017 tax rate = 35%

Pre-tax accounting income = $1,800,000

2018 Rent from Barrett Co. 64,000

Less:

Exempt Municipal bond income (80,000)

Tax Depreciation (in excess of

book depreciation) (40,000)

2018 Installment sales revenue (108,000)

Adjusted taxable income $1,636,000

Income tax (35%) 572,600 (35% of $1,636,000)

Tax expense (provision) 630,000 (35% of $1,800,000)

b) The difference between the income tax payable of $572,600 and the provision for income tax expense for the year of $630,000 is due to temporary differences and exempt Municipal bond income. The temporary differences are caused by the different timings of the recognition of revenue and expenses under the tax jurisdiction and the GAAP accounting.

Answer from: Quest

it should be

Answer from: Quest

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

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Hawkins Inc. had pre-tax accounting income of $1,800,000 and a tax rate of 35% in 2017, its first ye...

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