Homework Answers
Solution: $70,800
Working:
Amount to be be added to Crane Inc. deferred income tax liability for this temporary difference at December 31, 2018:
Depreciated amount per year for financial statement reporting purposes * Ttax rate
= $236,000 * 30%
= $70,800
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Question 14 On January 1, 2018, Crane, Inc. purchased a machine for $2360000 which will be...
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and deducted on the tax return in 2018. Also, at the end of 2017,
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The enacted tax rate for all years is 40%, and the company pays
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2017 for the estimated site-cleanup costs at two of its
manufacturing facilities. All related closing costs will be paid
and deducted on the tax return in 2018. Also, at the end of 2017,
the company has $71,000,000 of temporary differences due to excess
depreciation for tax purposes, $9,940,000 of which will reverse in
2018.
The enacted tax rate for all years is 40%, and the company pays
taxes of $90,880,000...
Question 11 At the beginning of 2018, Oriole Co. purchased an asset for $1700000 with an estimated useful life of 5 years and an estimated salvage value of $160000. For financial reporting purposes the asset is being depreciated using the straight-line method; for tax purposes the double-declining-balance method is being used. Oriole Co.'s tax rate is 40% for 2018 and all future years. At the end of 2018, which of the following deferred tax accounts and balances is reported on...
Ayres Services acquired an
asset for $88 million in 2018. The asset is depreciated for
financial reporting purposes over four years on a straight-line
basis (no residual value). For tax purposes the asset’s cost is
depreciated by MACRS. The enacted tax rate is 40%. Amounts for
pretax accounting income, depreciation, and taxable income in 2018,
2019, 2020, and 2021 are as follows:
Ayres Services acquired an asset for $88 million in 2018. The asset is depreciated for financial reporting purposes...
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I really just need the journal entries and
how income tax payable and expense are calculated for the entries
each year. Thank you
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Exercise 19-14 Metlock Inc.'s only temporary difference at the beginning and end of 2019 is caused by a $3,690,000 deferred gain for tax purposes for an installment sale of a plant asset, and the related receivable (only one-half of which is classified as a current asset) is due in equal installments in 2020 and 2021. The related deferred tax liability at the beginning of the year is $1,476,000. In the third quarter of 2019, a new tax rate of 20%...
I don't understand why end 2019 is not $13
and why end of 2020 is not $5.
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