Solution:
Income Tax Payable at December 31, 2017 = Taxable income * 40%
= $114,000* 40%
= $45,600
Brief Exercise 19-1 In 2017, Windsor Corporation had pretax financial income of $163,000 and taxable income...
Brief Exercise 19-9 Sandhill Inc. had pretax financial income of $163,000 in 2017. Included in the computation of that amount is insurance expense of $3,700 which is not deductible for tax purposes. In addition, depreciation for tax purposes exceeds accounting depreciation by $9,300 Prepare Sandhill's journal entry to record 2017 taxes, assuming a tax rate of 40%. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for...
Exercise 19-10 The following facts relate to Windsor Corporation. 1. Deferred tax liability, January 1, 2017, $61,200. 2. Deferred tax asset, January 1, 2017, $20,400. 3. Taxable income for 2017, $107,100. 4. Cumulative temporary difference at December 31, 2017, giving rise to future taxable amounts, $234,600. 5. Cumulative temporary difference at December 31, 2017, giving rise to future deductible amounts, $96,900. 6. Tax rate for all years, 40%. No permanent differences exist. 7. The company is expected to operate profitably...
Exercise 19-4 Splish Company reports pretax financial income of $68,200 for 2017. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $16,900. 2. Rent collected on the tax return is greater than rent recognized on the income statement by $23,600 3. Fines for pollution appear as an expense of $11,800 on the income statement. Splish's tax rate is 30% for all...
Sage Corporation began operations in 2017 and reported pretax
financial income of $230,000 for the year. Sage’s tax depreciation
exceeded its book depreciation by $40,000. Sage’s tax rate for 2017
and years thereafter is 30%. Assume this is the only difference
between Sage’s pretax financial income and taxable income.
Prepare the journal entry to record the income tax expense,
deferred income taxes, and income taxes payable.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually....
Windsor Company reports pretax financial income of $71,400 for
2020. The following items cause taxable income to be different than
pretax financial income.
1.
Depreciation on the tax return is greater than depreciation on
the income statement by $16,800.
2.
Rent collected on the tax return is greater than rent
recognized on the income statement by $23,700.
3.
Fines for pollution appear as an expense of $10,900 on the
income statement.
Windsor’s tax rate is 30% for all years, and...
Exercise 19-4 Tamarisk Company reports pretax financial income of $72,600 for 2017. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $14,500. 2. Rent collected on the tax return is greater than rent recognized on the income statement by $21,700. 3. Fines for pollution appear as an expense of $11,700 on the income statement. Tamarisk’s tax rate is 30% for all...
Exercise 19-4
Cheyenne Company reports pretax financial income of $72,600 for
2017. The following items cause taxable income to be different than
pretax financial income.
1.
Depreciation on the tax return is greater than depreciation on
the income statement by $17,200.
2.
Rent collected on the tax return is greater than rent
recognized on the income statement by $20,300.
3.
Fines for pollution appear as an expense of $9,900 on the
income statement.
Cheyenne’s tax rate is 30% for all...
Problem 19-1 (Part Level Submission) The following information is available for Whispering Corporation for 2017. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $124,000. This difference will reverse in equal amounts of $31,000 over the years 2018-2021. 2. Interest received on municipal bonds was $9,900 3. Rent collected in advance on January 1, 2017, totaled $55,500 for a 3-year period. Of this amount, $37,000 was reported as unearned at December 31, 2017, for...
Sunland Company reports pretax financial income of $72,000 for
2017. The following items cause taxable income to be different than
pretax financial income.
1.
Depreciation on the tax return is greater than depreciation on
the income statement by $14,700.
2.
Rent collected on the tax return is greater than rent
recognized on the income statement by $24,200.
3.
Fines for pollution appear as an expense of $11,900 on the
income statement.
Sunland’s tax rate is 40% for all years, and...
Windsor Company reports pretax financial income of $72,000 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $14,700. 2. Rent collected on the tax return is greater than rent recognized on the income statement by $24,200. 3. Fines for pollution appear as an expense of $11,900 on the income statement. Windsor’s tax rate is 30% for all years, and...