You have a company with a 21% tax rate, a depreciable asset of $90,000, depreciated on...
Assume Abbee Industries (AI) starts the current year, 2016, with a deferred tax asset balance of $2,000 and a deferred tax liability balance of $4,000. The current statutory tax rate, which is projected to be in effect when temporary differences reverse, is 30%. The reported pre-tax accounting income is $250,000. Analyze the following items to determine taxable income and income taxes payable, the change in deferred taxes payable (future taxable and deductible amounts), and tax expense for 2016. Assume there...
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Calculating tax base-assets (7 points) Calculate the tax base at the end of the tax year (30June) for various assets in the following unrelated circumstances. Show your calculations in the worksheet provided at the end of the question. State if the item is a deferred tax asset (DTA) or a deferred tax liability (DTL). a) Accounts receivable has a balance of $41000 There is an allowance for doubtful debts totalling $7000. b)...
I really just need the journal entries and
how income tax payable and expense are calculated for the entries
each year. Thank you
Ayres Services acquired an asset for $116 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,...
can someone please explain the illustration 16-1 and
illustration 16-1A to me. I have to understand this before the exam
tomorrow.
(I provided extra info if u need it)
TEMPORARY DIFFERENCES LO16-1 Describe the tybes of temporary differences that cause deferred tax liabilities and determine the amounts needed to record periodic income taxes. The differences in the rules for computing taxable income and those for financial reporting often cause amounts to be included in taxable income in a year...
This is the whole entire problem. Can someone help me out on it,
please? Thank you.
2. Problem 19-04 The accounting records of Flounder Inc. show the following data for 2020 (its first year of operations). 1. Life insurance expense on officers was $9,900. Equipment was acquired in early January for $288,000. Straight-line depreciation over a 5-year life is used, with no salvage value. For tax purposes, Flounder used a 30% rate to calculate depreciation. 3. Interest revenue on State...
3. At January 1, 2018, HD had a deferred tax asset of 590 million with no valuation allowance. At December 31, 2018, the account balances of HD Services showed a deferred tax asset ofS120 million befre assessing the need for a valuation allowance and income taxes payable of 580 million. HD determined that it was more likely that 30% of the deferred tax asset ultimately would not be realized. HD made no estimmated tat payments during 2018. What amount should...
At the beginning of 2016, Norris Company had a deferred tax
liability of $6,400, because of the use of MACRS depreciation for
income tax purposes and units-of-production depreciation for
financial reporting. The income tax rate is 30% for 2015 and 2016,
but in 2015 Congress enacted a 37% tax rate for 2017 and future
years.
Norris’s accounting records show the following pretax items of
financial income for 2016: income from continuing operations,
$119,300 (revenues of $351,000 and expenses of $231,700);...
tax rate, and the la xable income of $265,000, what is the marginal tax rate? a taxable income of $265,000, what is the total tax bill? a taxable income of $265,000, what is the average tax rate? CASH FLOWS AT WARF COMPUTERS, INC. Warf Computers, Inc., was founded 15 years ago by Nick Warf, a computer programmer. The small initial investment to start the company was made by Nick and his friends. Over the years, this same group has supplied...
P18.12 Carly Inc. reported the following accounting income (loss) and related tax rates during the years 2015 to 2021:YearAccounting Income (Loss)Tax Rate2015$ 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...
The accounting records of Whispering Winds Corp., a real estate developer, indicated income before income tax of $856,000 for its year ended December 31, 2020, and of $560,000 for the year ended December 31, 2021. The following data are also available.1.Whispering Winds Corp. pays an annual life insurance premium of $11,200 covering the top management team. The company is the named beneficiary.2.The carrying amount of the company’s property, plant, and equipment at January 1, 2020 was $1,250,000, and the UCC at that date was $993,000. Whispering Winds recorded...