Question

Based on the book income to taxable income reconciliation you completed use the attached spreadsheet to complete Palo Alto’s Schedule M-1.

Palo Alto, Inc. Income Statement Current Year Book - Tax Adjustments (DR) Book Income/(Loss) $64,800,000 -45,600,000 $19,200,

OTHER EXPENSES AND TOTAL EXPENSES FOR TAXABLE INCOME ARE -340,000 AND -15,845,000

Palo Alto, Inc.
Schedule M-1
1 Net income per books
2 Federal income tax per books
3 Excess of capital losses over capital gains
4 Income subject to tax not recorded on books this year (itemize)
5 Expenses recorded on books this year not deducted on this return
a. Depreciation
b. Contributions carryover
c. Travel and entertainment
6 Add lines 1 through 5 $0
7 Income recorded on books this year not included on this return
a. Tax exempt interest
8 Deductions on this return not charged against book income this year
a. Depreciation
b. Contributions carryover
9 Add lines 7 and 8 0
10 Income (line 28, page 1) – line 6 less line 9 $0

RECENT TAX LAWS OF 2018

0 1
Add a comment Improve this question Transcribed image text
Answer #1
Unit selling price $          400.00
Less: Unit Variable cost $        (240.00)
Unit Contribution Margin $    160.00
Carla Vista Company'
CVP income statement
For the Month ended Sept 30,2020
Total Per Unit
Sales $ 2,40,000.00 $ 400.00
Variable Costs $ 1,44,000.00 $ 240.00
Contribution margin $     96,000.00 $ 160.00
Fixed Costs $     54,400.00
Net income $     41,600.00
break even point in units : Fixed cost / Contribution margin per unit
54400 / 160 340 Units
Carla Vista Company'
CVP income statement
For the Month ended Sept 30,2020
Total Per Unit
Sales $ 1,36,000.00 $ 400.00
Variable Costs $     81,600.00 $ 240.00
Contribution margin $     54,400.00 $ 160.00
Fixed Costs $     54,400.00
Net income $                   -  
Add a comment
Know the answer?
Add Answer to:
Based on the book income to taxable income reconciliation you completed use the attached spreadsheet to...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Michael Smith has provided you with the current year’s income statement for Palo Alto, Inc. Reconcile...

    Michael Smith has provided you with the current year’s income statement for Palo Alto, Inc. Reconcile book income to taxable income. Palo Alto, Inc. Income Statement Current Year Book - Tax Adjustments Book Income/(Loss) (DR) Cr Taxable Income Revenue from sales $64,800,000 Cost of Goods Sold -45,600,000 Gross profit $19,200,000 Other income: Interest income 75,000 (1) Miscellaneous income 80,000 Gross Income $19,355,000 Expenses: Compensation -9,630,000 (2) Stock option compensation -350,000 (3) Advertising -1,950,000 Repairs and Maintenance -658,000 Rent -857,000 Bad...

  • Comprehensive Problem 5-56 (LO 5-1, LO 5-2, LO 5-3) Compute HC Inc.'s current-year taxable income given...

    Comprehensive Problem 5-56 (LO 5-1, LO 5-2, LO 5-3) Compute HC Inc.'s current-year taxable income given the following information relating to its 2019 activities. Also, compute HC's Schedule M-1 assuming that HC's federal income tax expense for book purposes is $30,000. Use Exhibit 16-6. • Gross profit from inventory sales of $310,000 (no book-tax differences). • Dividends HC received from 28 percent-owned corporation of $120,000 (this is also HC's pro rata share of the corporation's earnings). • Expenses other than...

  • Prepare a Schedule M-1, page 5, Form 1120, reconciling Cramer’s book and taxable income. Cramer Corporation, a calendar...

    Prepare a Schedule M-1, page 5, Form 1120, reconciling Cramer’s book and taxable income. Cramer Corporation, a calendar year, accrual basis corporation, reported $1.05 million of net income after tax on its 2018 financial statements prepared in accordance with GAAP. The corporation's books and records reveal the following information: • Cramer's federal income tax expense per books was $201,000. • Cramer's book income included $11,000 of dividends received from a domestic corporation in which Cramer owns a 25 percent stock...

  • Compute MV Corp. 2019 taxable income given the following info relating to its year 1 activities....

    Compute MV Corp. 2019 taxable income given the following info relating to its year 1 activities. Also, compute MV’s Schedule M-1 assuming that MV’s federal income tax expense for book purposes is $100,000. Gross profit from inventory sales of $500,000 (no book–tax differences) Dividends MV received from 25 percent-owned corporation of $100,000 (assume this is also MV’s pro rata share of the distributing corporation’s earnings). Expenses other than DRD, charitable contribution, and net operating loss (NOL), are $350,000 (no book–tax...

  • Cramer Corporation, a calendar year, accrual basis corporation, reported $1 million of net income after tax...

    Cramer Corporation, a calendar year, accrual basis corporation, reported $1 million of net income after tax on its 2019 financial statements prepared in accordance with GAAP. The corporation’s books and records reveal the following information: Cramer's federal income tax expense per books was $200,000. Cramer's book income included $10,000 of dividends received from a domestic corporation in which Cramer owns a 25 percent stock interest, and $4,000 of dividends from a domestic corporation in which Cramer owns a 5 percent...

  • Cremshaw Inc.’s auditors prepared the following detail reconciliation between book and taxable income. Cremshaw’s income tax...

    Cremshaw Inc.’s auditors prepared the following detail reconciliation between book and taxable income. Cremshaw’s income tax rate is 21%. Book income before tax $650,000 Bad debt allowance $25,000 Meals ($30,000 * 50%) $15,000 Tax-exempt interest income $(20,000) Wages not paid in 2 ½ months $45,000 Taxable income $715,000 Compute the net increase in Cremshaw’s deferred tax assets or liabilities for the year and identify whether deferred tax assets or liabilities increased.

  • Jackson Corporation prepared the following book income statement for its year ended December 31, 2017: Computations for...

    Jackson Corporation prepared the following book income statement for its year ended December 31, 2017: Computations for Problem C:3-64 Sales $950,000 Minus: Cost of goods sold (450,000) Gross profit $500,000 Plus: Dividends received on Invest Corporation stock $3,000 Gain on sale of Invest Corporation stock 30,000 Total dividends and gain 33,000 Minus: Depreciation ($7,500+$52,000) $59,500 Bad debt expense 22,000 Other operating expenses 105,500 Loss on sale of Equipment 1 70,000 Total expenses and loss (257,000) Net income per books before...

  • hello i am stuck on the line about bad debt C CORPORATION BOOK-TO-TAX RECONCILIATION. Western Corporation,...

    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 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...

  • Pls help with the numbers in red. Also, provide an explanation of your results! Thank you!...

    Pls help with the numbers in red. Also, provide an explanation of your results! Thank you! Compute HC Inc.'s current-year taxable income given the following information relating to its 2020 activities. Also, compute HC's Schedule M-1 assuming that HC's federal income tax expense for book purposes is $30,000. Use Exhibit 16-6. • Gross profit from inventory sales of $310,000 (no book-tax differences) Dividends HC received from 28 percent-owned corporation of $120,000 (this is also HC's pro rata share of the...

  • C CORPORATION BOOK-TO-TAX RECONCILIATION. Astro Corporation, an accrual basis, calendar-year C corporation, began o...

    C CORPORATION BOOK-TO-TAX RECONCILIATION. Astro Corporation, an accrual basis, calendar-year C corporation, began operations on January 2, 2010. For each item below, determine the 2019 Schedule M-1 adjustment to reconcile book income to taxable income, i.e., the amount and the effect ( + or -). Net income per books $950,000 Provision for Federal income taxes, $240,000 Municipal bond interest, $12,000 During 2019, Astro increased its allowance for uncollectible accounts by $30,000; actual bad debts written off in 2019 were $36,000....

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT