22. for 2021, Forrway corporation, an accrual basis calendar year corporation, had net income per books of $ 111,550 and the following transactions: premiums on life insurance policy on its key employees- $6000 excess capital losses $2000 excess tax depreciation $9000 life insurance proceeds on life of its key employees $55000 rent income received in 2021 $40000 ($30000 is prepaid and related to 2021) tax exempt interest income $8000 federal income tax liability for 2021 $15450 prepaid rent received and properly taxed in 2020 (but not earned for financial accounting purpose until 2021) $15000 interest expense on tax exempt interest income item $2000 The taxable income for Forrway corporation for the tax year of 2021 is (as computed in its schedule M-1 reconciliation) $90000 $100000 $80000 $70000 23. for 2021, Forrway corporation, an accrual basis calendar year corporation, had net income per books Ll સતત C II I'C
22. for 2021, Forrway corporation, an accrual basis calendar year corporation, had net income per books of $ 111,550 and the following transactions: premiums on life insurance policy on its key employees- $6000 excess capital losses $2000 excess tax depreciation $9000 life insurance proceeds on life of its key employees $55000 rent income received in 2021 $40000 ($30000 is prepaid and related to 2021) tax exempt interest income $8000 federal income tax liability for 2021 $15450 prepaid rent received and properly taxed in 2020 (but not earned for financial accounting purpose until 2021) $15000 interest expense on tax exempt interest income item $2000 The taxable income for Forrway corporation for the tax year of 2021 is (as computed in its schedule M-1 reconciliation) $90000 $100000 $80000 $70000 23. for 2021, Forrway corporation, an accrual basis calendar year corporation, had net income per books Ll સતત C II I'C
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 9DQ: LO.2 Osprey Corporation, an accrual basis taxpayer, had taxable income for 2019 and paid 40,000 on...
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Transcribed Image Text:22. for 2021, Forway corporation, an accrual basis calendar year corporation, had net income per books
of $ 111,550 and the following transactions: premiums on life insurance policy on its key employees-
$6000 excess capital losses $2000 excess tax depreciation $9000 life insurance proceeds on life of its key
employees $55000 rent income received in 2021 $40000 ( $30000 is prepaid and related to 2021) tax
exempt interest income $8000 federal income tax liability for 2021 $15450 prepaid rent received and
properly taxed in 2020 ( but not earned for financial accounting purpose until 2021) $15000 interest
expense on tax exempt interest income item $2000 The taxable income for Forrway corporation for the
tax year of 2021 is ( as computed in its schedule M-1 reconciliation)
$90000
$100000
$80000
$70000
23. for 2021, Forway corporation, an accrual basis calendar year corporation, had net income per books
of $ 111,550 and the following transactions: premiums on life insurance policy on its key employees-
$6000 excess capital losses $2000 excess tax depreciation $9000 life insurance proceeds on life of its key
employees $55000 Rent income received in 2021 $40000 ( $30000 is prepaid and related to 2021) tax
exempt interest income $8000 federal income tax liability for 2021 $15450 prepaid rent received and
properly taxed in 2020 ( but not earned for financial accounting purpose until 2021) $15000, interest
expense on tax exempt interest income item $2000. The total amount "added" to net income per books
for Forrway corporation in its schedule M-1 reconciliation for the tax year of 2021 is
ww
$55450
$80000
$167000
$87000
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