1.        In 2014, Ryan Corporation reported $85,000 net income before income taxes. The income tax rate for 2014 was 30…

1.        In 2014, Ryan Corporation reported $85,000 net income before income taxes. The income tax rate for 2014 was 30 percent. Ryan had an unused $65,000 net operating loss carryforward arising in 2013 when the tax rate was 35 percent. The income tax expense Ryan would report for 2014 would be

2.        The Morris Corporation reported a $59,000 operating loss in 2014. In the preceding three years, Morris reported the following income before taxes and paid the indicated income taxes:

The amount of tax benefit to be reported in 2014 arising from the tax carryback provisions of the current tax code would be

3.        The Racing Company had taxable income of $12,000 during 2014. Racing used accelerated depreciation for tax purposes ($3,400) and straight-line depreciation for accounting purposes ($2,000). Assuming Racing had no other temporary differences, what would the company’s pretax accounting income be for 2014?

4.        On December 31, 2013, Breezeway, Inc., reported a current deferred tax liability of $140,000 and a noncurrent deferred tax asset of $40,000. At the end of 2014, Breezeway reported a current deferred tax liability of $100,000, and a noncurrent deferred tax liability of $44,000. The deferred tax expense for 2014 is

5.        Amengual Corporation began operations in 2011 and had operating losses of $400,000 in 2012 and $300,000 in 2013. For the year ended December 31, 2014, Amengual had a pretax financial income of $600,000. For 2012 and 2013, assume an enacted tax rate of 30 percent, and for 2014 a 35 percent tax rate. There were no temporary differences in any of the years. In Amengual’s 2014 income statement, how much should be reported as income tax expense?

During the first week of February, Gabe Hopen earned $300. Assume that FICA taxes are 7.65 percent of wages up to $106,800, state unemployment tax is 5.0 percent of wages up to $13,000, and federal unemployment tax is 0.8 percent of wages up to $13,000. Assume that Gabe has voluntary withholdings of $10 (in addition to taxes) and that federal and state income tax withholdings are $18 and $6, respectively.

     6.   Using the information above, what amount is the check, net of all deductions, that Gabe received for the week’s pay?

     7.   Using the information above, what is the employer’s payroll tax expense for the week, assuming that Gabe Hopen is the only employee?

8.        Vinny, Inc. has an incentive compensation plan under which the sales manager receives a bonus equal to 10 percent of the company’s income after deductions for bonus and income taxes. Income before bonus and income taxes is $400,000. The effective income tax rate is 30 percent. How much is the bonus (rounded to the nearest dollar)?

9.        The following information relates to Aracely Inc. at December 31, 2014:

The total pension liability at December 31, 2014, for Aracely Inc. is

10.      Gordon Inc. has a defined benefit plan for its employees. The following information relates to this plan:

There was no unrecognized prior service cost or unrecognized gains or losses. Gordon’s net periodic pension cost for the year was