Explore BrainMass

Hobson International Corp - financial statement amounts

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Information for Hobson International Corp for the current year (millions):

Income from continuing operations before tax $150
Extraordinary loss (pretax) 30
Temporary differences (all related to operating income):
Accrued warranty expense in excess of write-offs
included in operating income 10
Depreciation deducted on tax return in excess of depreciated expense 25
Permanent differences (all related to operating income):
Nondeductible portion of travel & entertainment expense 5
The applicable enacted tax rate for all periods is 40%

How much tax on income from continuing operations would be reported in Hobson's income statement?
a. 56 million, b. 50 million, c. 62 million, d. 60 million

What is Hobson's income tax payable for the current year?
a. 48 million, b. 44 million, c. 52 million, d. 50 million

What should Hobson report as net income?
a. 88 million, b. 72 million, c. 70 million, d. 75 million

© BrainMass Inc. brainmass.com October 17, 2018, 3:25 am ad1c9bdddf

Solution Summary

Your tutorial is attached in excel. Click in cells to see tutorial. A schedule is prepared for you to analyze the permanent and timing differences to determine tax expense (both continuing operations and extraordinary item).

Similar Posting

Was war good for children from 1900-50?


My exam question is along the lines of "consider the statement that 'War was good for babies and small children in the first half of the 20th Century'". The essay is based on events in the UK but events from outside the UK can be considered. I have been preparing what areas I am going to cover in the exam and I would like your thoughts as to what I should write about.

So far I have:

Will examine whether the war good for children
Will look at positives from the war
Will also look at negatives from the war

Paragraph 1- Liberal Reforms

Paragraph 2- Formation of the NHS

Paragraph 3- National Insurance

Paragraph 4- Negatives


Thank you!

View Full Posting Details