Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2024. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Income Tax Expense Deferred Tax Asset Deferred Tax Llability Income Tax Payable eTextbook and Media List of Accounts Your answer is partially correct. Income Tax Expense Deferred Tax Liability Deferred Tax Asset Debit Income Tax Payable 65600 Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2025, assuming taxable income of $263,800. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Debit 10320 Credit 7680 30720 Credit 45200 10320 94720

Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2024. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Income Tax Expense Deferred Tax Asset Deferred Tax Llability Income Tax Payable eTextbook and Media List of Accounts Your answer is partially correct. Income Tax Expense Deferred Tax Liability Deferred Tax Asset Debit Income Tax Payable 65600 Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2025, assuming taxable income of $263,800. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Debit 10320 Credit 7680 30720 Credit 45200 10320 94720

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter5: Business Deductions

Section: Chapter Questions

Problem 28P

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Comprehensive Colt Company reports pretax financial income of 143,000 in 2019. In addition to pretax income from continuing operations (of which revenues are 295,000), the following items are included in this pretax income: Colts taxable income totals 93,000 in 2019. The difference between the pretax financial income and the taxable income is due to the excess of tax depreciation over financial depreciation on assets used in continuing operations. At the beginning of 2019, Colt had a retained earnings balance of 310.000 and a deferred tax liability of 8,100. During 2019, Colt declared and paid dividends of 48,000. It is subject to tax rates of 15% on the first 50,000 of income and 30% on income in excess of 50,000. Based on proper interperiod tax allocation procedures, Colt has determined that its 2019 ending deferred tax liability is 14,100. Required: 1. Prepare a schedule for Colt to allocate the total 2019 income tax expense to the various components of pretax income. 2. Prepare Colts income tax journal entry at the end of 2019. 3. Prepare Colts 2019 income statement. 4. Prepare Colts 2019 statement of retained earnings. 5. Show the related income tax disclosures on Colts December 31, 2019, balance sheet.
The following information is available for Metlock Inc. for 2024: Excess of tax depreciation over book depreciation, $77,200. This $77,200 difference will reverse equally over the next 4 years. 1. 2 3. (a) Deferral, for book purposes, of $26,000 of subscription income received in advance. The subscription income will be earned in 2025. Pretax financial income, $206,000. Tax rate for all years, 20%. Your answer is correct. Compute taxable income for 2024. (b) Taxable income 154800 Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2024. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. List all debit entries before credit entries.) Account Titles and Explanation deprecation Debit Credit
The following information is available for Whispering Inc. for 2019: 1. Excess of tax depreciation over book depreciation, $77,200. This $77,200 difference will reverse equally over the next 4 years. 2. Deferral, for book purposes, of $26,000 of subscription income received in advance. The subscription income will be earned in 2020. 3. Pretax financial income, $206,000. 4. Tax rate for all years, 20%. (a) Your answer has been saved. See score details after the due date. Compute taxable income for 2019. Taxable income $ 154,800
The following information is available for Whispering Inc. for 2019: 1. Excess of tax depreciation over book depreciation, $77,200. This $77,200 difference will reverse equally over the next 4 years. 2. Deferral, for book purposes, of $26,000 of subscription income received in advance. The subscription income will be earned in 2020. 3. Pretax financial income, $206,000. 4. Tax rate for all years, 20%.
Use this information for parts A and B. In 2026, Goodfellas Company reported pretax GAAP income of $400,000. During 2026, Goodfellas had the following differences between GAAP and tax: Recognized $100,000 installment sale revenue under GAAP in 2026. This revenue will be recognized for tax purposes in equal amounts over the next four years. Recognized $50,000 of depreciation in 2026 for tax. Starting in 2027, GAAP depreciation is $10,000 per year for the next five years. Received $100,000 in unearned rent revenue in 2026. Rent will be earned in equal amounts in 2027 and 2028. The tax rate for 2026 is 30 percent and 20 percent thereafter. A) What journal entry does Goodfellas record for taxes in 2026?
The following information is available for Whispering Inc. for 2019: 1. Excess of tax depreciation over book depreciation, $77,200. This $77,200 difference will reverse equally over the next 4 years. 2. Deferral, for book purposes, of $26,000 of subscription income received in advance. The subscription income will be earned in 2020. 3. Pretax financial income, $206,000. 4. Tax rate for all years, 20%. (a) Compute taxable income for 2019. Taxable income $
The following information applies to the operations of MK Inc. for 2022 and 2023. Assume a tax rate of 20% for both years.2022 information:Sales on account in the amount of $675,000Warranty expense and associated liability in the amount of $145,000No other expenses incurred.2023 information:Sales on account in the amount of $210,000Warranty repairs made in the amount of $69,000No expenses incurred.What is MK's income tax expense for 2022? Group of answer choices $121,200 $135,000 $106,000 $164,000
The following information is available for Grouper Corporation for 2024 (its first year of operations). 1. 2. 3. 4. (a) Excess of tax depreciation over book depreciation, $41,200. This $41,200 difference will reverse equally over the years 2025-2028. Deferral, for book purposes, of $18,700 of rent received in advance. The rent will be recognized in 2025. Pretax financial income, $319,200. Tax rate for all years, 30%. Compute taxable income for 2024. Taxable income eTextbook and Media List of Accounts Save for Later Attempts: 0 of 1 used Submit Answer
The following information is available for Sandhill Corporation for 2024 (its firs year of operations). 1. 2. 3. 4. (d) Excess of tax depreciation over book depreciation, $37,200. This $37,200 difference will reverse equally over the years 2025-2028. Deferral, for book purposes, of $21,400 of rent received in advance. The rent will be recognized in 2025. Pretax financial income, $274,100. Tax rate for all years, 20%. X Your answer is incorrect. Compute the effective income tax rate for 2025. (Round answer to 1 decimal place, e Effective income tax rate 38.1 %
Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): Revenues. Expenses Pretax accounting income (income statement) Taxable income (tax return) Tax rate: 25% 2024 $888 760 $128 $116 a. Expenses each year include $30 million from a two-year casualty insurance policy purchased in 2024 for $60 million. The cost is tax deductible in 2024. Answer is complete but not entirely correct. Deferred tax amounts ($ in millions) Classification Net noncurrent deferred tax asset ✔ $ Net noncurrent deferred tax liability X $ 2025 $980 800 b. Expenses include $2 million insurance premiums each year for life insurance on key executives. c. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2024 and 2025 were $33 million and $35 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $25 million ($10 million collected in 2023 but not recognized as revenue until 2024) and $33 million,…
Caramel Corp. prepared the following reconciliation of income per books with income per tax return for the year ended December 31, 2021: Book income before income taxes 2,700,000.00 Add temporary difference Installment revenue which will reverse in 2022 240,000.00 Deduct temporary difference Depreciation expense which will reverse in equal amounts in each of the next four years (960,000.00) Taxable income 1,980,000.00 Caramel Corp effective income tax rate is 25% for 2021. What amount should Caramel Corp report in its 2021 income statement as the current provision for income tax expense?
Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): Revenues Expenses Pretax accounting income (income statement) Taxable income (tax return) Tax rate: 25% 2024 $ 940 796 $ 144 $ 104 2025 $ 1,032 852 a. Expenses each year include $58 million from a two-year casualty insurance policy purchased in 2024 for $116 million. The cost is tax deductible in 2024. $ 180 $ 214 b. Expenses include $2 million insurance premiums each year for life insurance on key executives. c. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2024 and 2025 were $59 million and $75 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $53 million ($36 million collected in 2023 but not recognized as revenue until 2024) and $59 million, respectively. Hint. View this as two temporary differences-one reversing in 2024; one originating in 2024. d. 2024 expenses included a $42 million unrealized loss from…