1. Following carryback and carry-forward provisions, below is the calculation
Year | Income (a) | Tax rate (b) | Tax (a*b) | Refund |
2008 | 16000 | 50% | 8000 | 8000 |
2009 | -40000 | 50% | ||
2010 | 16000 | 48% | 7680 | 7680 |
2011 | 24000 | 48% | 11520 | 11520 |
2012 | -32000 | 45% | ||
2013 | 16000 | 42% | 6720 | 6720 |
2014 | 32000 | 42% | 13440 | |
2015 | 64000 | 34% | 21760 | |
2016 | 80000 | 34% | 27200 | |
2017 | -16000 | 30% | 19200 | |
Net Tax payable in 2017 --> | 9280 |
$9280 has been arrived by adding the yellow color cells and subtracting the blue color cells.
2.
2015 | ||
Income tax expense | 21760 | |
To Income tax payable | 21760 | |
2016 | ||
Income tax expense | 27200 | |
To Income tax payable | 27200 | |
2017 | ||
Income tax refund receivable | 19200 | |
To Income tax expense | 19200 |
3.
Being Deferred tax asset created for entire loss amount for 2017.
Deferred Tax Asset | 4800 | |
To Income tax expense (benefit) | 4800 | |
(16000$*30%) |
Advanced Accounting II Chapter 19- Income Taxes Problem 1. Garrison Designs, Inc., a corporation organized on...
Froblem 1. Garrison Designs, Inc., a corporation organized on January 1, 2008, reported the following incomes (losses) for the ten-year period, 2008-2017: Year Income (Loss) Income Tax Rate 2008 $ 16,000 50% 2009 (40,000) 50% 2010 16,000 48% 2011 24,000 48% 2012 (32,000) 45% 2013 16,000 42% 2014 32,000 42% 2015 64,000 34% 2016 80,000 34% 2017 (16,000) 30% Instructions (1) Applying the carryback provisions in the tax law, compute the net amount of taxes paid (amounts paid less refunds)...
(c) Problem 2. The following differences between financial and taxable income were reported by Dider Corporation for the year: (a) Excess of tax depreciation over book depreciation $10,000 (b) Interest revenue on municipal bonds 9,000 Excess of estimated warranty expense over actual expenditures 54,000 (d) Rent of next year paid 12.000 Fines paid 30,000 (t) Excess of income reported under percentage-of-completion accounting for financial reporting over completed-contract accounting used for tax reporting. 45,000 Interest on indebtedness incurred to purchase tax-exempt...
Problem 19-5 Marin Inc. reported the following pretax income (loss) and related tax rates during the years 2013–2019. Pretax Income (loss) Tax Rate 2013 $41,500 30 % 2014 27,400 30 % 2015 48,800 30 % 2016 74,200 40 % 2017 (173,600) 45 % 2018 74,800 40 % 2019 104,800 35 Pretax financial income (loss) and taxable income (loss) were the same for all years since Marin began business. The tax rates from 2016–2019 were enacted in 2016. Prepare the journal...
Pina Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. (Assume the carryback provision is used for a net operating loss.) Year Pretax Income (Loss) Tax Rate 2015 $118,000 34 % 2016 90,000 34 % 2017 (296,000 ) 38 % 2018 229,000 38 % The tax rates listed were all enacted by the beginning of 2015. Collapse question part (a) Prepare the journal entries for the years 2015–2018 to record income tax expense (benefit)...
i need help in this hw please Homework Assignment (Chapter 19: Accounting for Income Taxes) Johnny Bravo Ltd. began operations in 2019 and has provided the following information. 1. Pretax financial income for 2019 is £100,000. 2. The tax rate enacted for 2019 and future years is 40%. 3. Differences between the 2019 income statement and tax return are listed below. a. Warranty expense accrued for financial reporting purposes amounts to £5,000. Warranty deductions per the tax return amount to...
Homework Assignment (Chapter 19: Accounting for Income Taxes) Johnny Bravo Ltd. began operations in 2019 and has provided the following information. 1. Pretax financial income for 2019 is £100,000. 2. The tax rate enacted for 2019 and future years is 40%. 3. Differences between the 2019 income statement and tax return are listed below. a. Warranty expense accrued for financial reporting purposes amounts to £5,000. Warranty deductions per the tax return amount to £2,000. b. Gross profit on construction contracts...
P18.12 Carly Inc. reported the following accounting income (loss) and related tax rates during the years 2015 to 2021:YearAccounting Income (Loss)Tax Rate2015$ 70,000 25%2016 25,000 25%2017 60,000 25%2018 80,000 30%2019(210,000)35%2020 70,000 30%2021 90,000 25%Accounting income (loss) and taxable income (loss) were the same for all years since Carly began business. The tax rates from 2018 to 2021 were enacted in 2018. Assume Carly Inc. follows ASPE for all parts of this question, except when asked about the effect of reporting under...
Cabot Company reported a pretax operating loss of $50,000 for financial reporting and tax purposes in 2021. The enacted tax rate is 25% for 2021 and subsequent years. Assume that Cabot operates in an industry for which NOL carryback is allowed and requests a refund of taxes already paid by electing a loss carryback. Taxable income, tax rates, and income taxes paid in Cabot's first four years of operations were as follows: Taxable Tax Taxes income rates paid 2017 $30,000...
Exercise 19-23 Pearl Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Assume the carryback provision is used for a net operating loss.) Pretax Income (Loss) Year Tax Rate 2015 2016 2017 2018 $113,000 84,000 (270,000) 231,000 The tax rates listed were all enacted by the beginning of 2015. Prepare the journal entries for the years 2015-2018 to record income tax expense (benefit) and income taxes payable (refundable) and the tax effects of the...
Teal Inc. reported the following pretax income (loss) and related tax rates during the years 2013–2019. Pretax Income (loss) Tax Rate 2013 $38,600 30 % 2014 23,900 30 % 2015 48,900 30 % 2016 73,600 40 % 2017 (196,900 ) 45 % 2018 74,800 40 % 2019 98,500 35 % Pretax financial income (loss) and taxable income (loss) were the same for all years since Teal began business. The tax rates from 2016–2019 were enacted in 2016. Prepare the journal...