Solution 1a:
Income tax rate enacted for 2010 = $18750 / $75,000 = 25%
Solution 1b:
Adjusting Journal Entry - Jets Company | |||
Event | Particulars | Debit | Credit |
1 | Income tax expense Dr | $8,750.00 | |
To Deferred tax liability ($50,000*17.5%) | $8,750.00 | ||
(To record deferred tax liability due to increase in rate of taxes for future periods) |
Solution 2:
Adjusting Journal Entry - Lambeau Inc. | |||
Event | Particulars | Debit | Credit |
1 | Deferred tax assets Dr ($100,000*25%) | $25,000.00 | |
To Income tax benefit | $25,000.00 | ||
(To record deferred tax assets on loss carryforward) |
E new doc 2019-01-22 18 0 A 10 file:///C:/UserstalalDownloads/new%20doc%202019-o1.22%2018.5749%20(1).pdf The Jets Company recorded a deferred tax...
e IH) new doc 201901-2218 × It 0 A 10 file:///C:/UserstałalDownloads/new%20doc%202019-01-22%2018.5749%20(1).pdf ← → Alexa Inc. purchased equipment in 2018 for $50,000 with no residual value. On December 31, 2020, accumu- lated depreciation using the straight-line method for financial reporting was $15,000. For tax purposes, Alexa uses MACRS depreciation resulting in $35,600 in accumulated depreciation for tax purposes on December 31, 2020. Taxable income was $100,000 for 2020 and the company's tax rate is 25%. a. Determine the GAAP basis of...
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Current Attempt in ProgressOn December 31, 2019, Monty Inc. has taxable temporary differences of $2.19 million and a deferred tax liability of $613,200. These temporary differences are due to Monty having claimed CCA in excess of book depreciation in prior years. Monty’s year end is December 31. At the end of December 2020, Monty’s substantively enacted tax rate for 2020 and future years was changed to 30%.For the year ended December 31, 2020, Monty’s accounting loss before tax was $493,500. The following data are also available.1.Pension expense was...
On December 31, 2019, Monty Inc. has taxable temporary differences of $2.19 million and a deferred tax liability of $613,200. These temporary differences are due to Monty having claimed CCA in excess of book depreciation in prior years. Monty’s year end is December 31. At the end of December 2020, Monty’s substantively enacted tax rate for 2020 and future years was changed to 30%.For the year ended December 31, 2020, Monty’s accounting loss before tax was $493,500. The following data are also available.1.Pension expense was $88,000 while pension plan...
question1 Shwonson Industries reported a deferred tax asset of $9.25 million for the year ended December 31, 2020, related to a temporary difference of $37 million. The tax rate was 25%. The temporary difference is expected to reverse in 2022, at which time the deferred tax asset will reduce taxable income. There are no other temporary differences in 2020–2022. Assume a new tax law is enacted in 2021 that causes the tax rate to change from 25% to 15% beginning...
i need to get this correct! i got one last attempt!! ng 5 e and al Question 2 View Policies Show Attempt History Current Attempt in Progress Con Skysong Inc. reports the following pretax income (loss) for both book and tax purposes. pport Pretax Year Income (Loss) Tax Rate 2018 $117,000 20% 2019 83,000 20% 2020 (256,000) 25 % 2021 132,000 25% The tax rates listed were all enacted by the beginning of 2018. (a) I Your answer is correct...
Concord Ltd. began business on January 1, 2019. At December 31, 2019, it had a $56,550 balance in the Deferred Tax Liability account that pertains to property, plant, and equipment acquired on July 1, 2019 at a cost of $870,000. The property, plant, and equipment is being depreciated on a straight-line basis over six years for financial reporting purposes, and is a Class 8-20% asset for tax purposes. Concord’s income before income tax for 2020 was $65,000. Concord Ltd. follows IFRS.The following items caused the...
Concord Ltd. began business on January 1, 2019. At December 31, 2019, it had a $56,550 balance in the Deferred Tax Liability account that pertains to property, plant, and equipment acquired on July 1, 2019 at a cost of $870,000. The property, plant, and equipment is being depreciated on a straight-line basis over six years for financial reporting purposes, and is a Class 8-20% asset for tax purposes. Concord’s income before income tax for 2020 was $65,000. Concord Ltd. follows IFRS.The following items caused the...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...