At the end of the year, the deferred tax asset account had a balance of $4 million attributable to a temporary difference of $16 million in a liability for estimated expenses. Taxable income is $60 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Prepare the journal entry(s) to record income taxes, assuming it is more likely than not that three-fourths of the deferred tax asset will not ultimately be realized. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
Dec 31 | Income tax expense | 11 | |
Deferred tax asset | 4 | ||
Income tax payable (60*25%) | 15 | ||
Dec 31 | Income tax expense (4*3/4) | 3 | |
Valuation allowance - Deferred tax asset | 3 | ||
At the end of the year, the deferred tax asset account had a balance of $4...
At the end of the year, the deferred tax asset account had a balance of $8 million attributable to a temporary difference of $32 million in a liability for estimated expenses. Taxable income is $72 million. No temporary differences existed at the beginning of the year, and the tax rate is 25% Prepare the journal entry(s) to record income taxes, assuming it is more likely than not that three-fourths of the deferred tax asset will not ultimately be realized. (If...
At the end of the year, the deferred tax asset account had a balance of $20 million attributable to a temporary difference of $80 million in a liability for estimated expenses. Taxable income is $108 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Prepare the journal entry(s) to record income taxes, assuming it is more likely than not that three-fourths of the deferred tax asset will not ultimately be realized. (If...
At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $32 million attributable to a temporary book- tax difference of $80 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $60 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2018 is $175 million and the tax rate is 40%. Required: 1. Prepare the journal entry(s)...
At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $30 million attributable to a temporary book- tax difference of $75 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $70 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2018 is $180 million and the tax rate is 40%. Required: 1.Prepare the journal entry(s) to...
At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $38 million attributable to a temporary book-tax difference of $95 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $90 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2018 is $190 million and the tax rate is 40%. Required: 1. Prepare the journal entry(s) to...
At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $40 million attributable to a temporary book- tax difference of $160 million in a liability for estimated expenses. At the end of 2021, the temporary difference is $112 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2021 is $288 million and the tax rate is 25%. Required: 1. Prepare the journal entry(s)...
At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $40 million attributable to a temporary book- tax difference of $100 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $90 million. Payne has no other temporary differences. Taxable income for 2018 is $250 million and the tax rate is 40%. Payne has a valuation allowance of $12 million for the deferred tax asset at the...
question 1 At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $95 million attributable to a temporary book-tax difference of $380 million in a liability for estimated expenses. At the end of 2021, the temporary difference is $288 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2021 is $684 million and the tax rate is 25%. Required: 1. Prepare the journal...
At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $115 million attributable to a temporary book- tax difference of $460 million in a liability for estimated expenses. At the end of 2021, the temporary difference is $352 million. Payne has no other temporary differences. Taxable income for 2021 is $828 million and the tax rate is 25%. Payne has a valuation allowance of $46 million for the deferred tax asset at the...
At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $105 million attributable to a temporary book-tax difference of $420 million in a liability for estimated expenses. At the end of 2021, the temporary difference is $320 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2021 is $756 million and the tax rate is 25%. Required: 1. Prepare the journal entry(s) to...