Problem C - Problem C: 3-65: Permtemp Corporation formed in...

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Problem C: 3-65: Permtemp Corporation formed in 2008 and, for that year, reported the following book income statement and balance sheet, excluding the federal income tax expense, deferred tax assets, and deferred tax liabilities: Sales $20,000,000 Cost of goods sold) (15,000,000) Gross profit $ 5,000,000 Dividend income 50,000 Tax-exempt interest income 15,000 Total income $ 5,065,000 Expenses: Depreciation $ 800,000 Bad debts 400,000 Charitable contributions 100,000 Interest 475,000 Meals and entertainment 45,000 Other 3,855,000 Total expenses) 5,675,000 Net loss before federal income taxes $ (610,000) Cash $ 500,000 Accounts receivable $ 2,000,000 Allowance for doubtful accounts) (250,000) 1,750,000 Inventory 4,000,000 Fixed assets $10,000,000 Accumulated depreciation) (800,000) 9,200,000 Investment in corporate stock 1,000,000 Investment in tax-exempt bonds 50,000 Total assets $16,500,000 Accounts payable $2,610,000 Long-term debt 8,500,000 Common stock 6,000,000 Retained earnings) (610,000)
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This note was uploaded on 01/18/2012 for the course HOMEWORK AC420 taught by Professor Atkins during the Spring '11 term at Kaplan University.

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Problem C - Problem C: 3-65: Permtemp Corporation formed in...

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