Homework Answers
2013 -. Accouting income is more than the tax income. Hence , deferred tax asste will be arise i.e. 170000 [(475000-900000)*0.4].
2014 - accounting income is more than the tax income. Hence DTA will be arise i.e. 30000 [(625000-700000)*0.4].
$200000 will be the amount debited in construction process account to record the change at the beginning of 2015
Add Answer to:
At the beginning of 2015, a construction company changed from the completed-contract method to the percentage-of-completion...
d. none UI ile dov. 23.During 2018, a construction company changed from the completed-contract method to...
d. none UI ile dov. 23.During 2018, a construction company changed from the completed-contract method to the percentage- of-completion method for accounting purposes but not for tax purposes. Gross profit figures under both methods for the past three years appear below: Completed-Contract Percentage-of-Completion $ 800,000 2016 $ 475,000 950,000 2017 625,000 2018 1.050,000 700.000 S1.800.000 $2.800.000 Assuming an income tax rate of 40% for all years, the effect of this accounting change on prior periods should be reported by a...
At the beginning of 2017, Culver Construction Company changed from the completed-contract method to recognizing revenue...
At the beginning of 2017, Culver Construction Company changed
from the completed-contract method to recognizing revenue over time
(percentage-of-completion) for financial reporting purposes. The
company will continue to use the completed-contract method for tax
purposes. For years prior to 2017, pretax income under the two
methods was as follows: percentage-of-completion $110,500, and
completed-contract $72,300. The tax rate is 30%.
Prepare Culver’s 2017 journal entry to record the change in
accounting principle. (Credit account titles are
automatically indented when amount is...
At the beginning of 2017, Stellar Construction Company changed from the completed-contract method to recognizing revenue...
At the beginning of 2017, Stellar Construction Company changed
from the completed-contract method to recognizing revenue over time
(percentage-of-completion) for financial reporting purposes. The
company will continue to use the completed-contract method for tax
purposes. For years prior to 2017, pretax income under the two
methods was as follows: percentage-of-completion $114,200, and
completed-contract $79,400. The tax rate is 40%.
Prepare Stellar’s 2017 journal entry to record the change in
accounting principle. (Credit account titles are
automatically indented when amount is...
At the beginning of 2018, a construction company that began operations in 2016 changed from the...
At the beginning of 2018, a construction company that began operations in 2016 changed from the completed-contract method to the percentage-of-completion method for accounting purposes but not for tax purposes. Gross profit figures under both methods for the past three years appear below: Completed-Contract Percentage-of-Completion 2016 $ 950,000 $ 1,800,000 2017 1,250,000 1,900,000 2018 1,400,000 2,100,000 Assuming an income tax rate of 30% for all years, the effect of this accounting change on prior periods should be reported by f...
Tamarisk Construction Company changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction...
Tamarisk Construction Company changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction contracts during 2018. For tax purposes, the company employs the completed-contract method and will continue this approach in the future. (Hint: Adjust all tax consequences through the Deferred Tax Liability account.) The appropriate information related to this change is as follows. Pretax Income from: Percentage-of-Completion Completed-Contract Difference 2017 $714,000 $647,000 $67,000 2018 642,000 512,000 130,000 (a) Assuming that the tax rate is 30%, what...
Blue Construction Company, which began operations in 2017, changed from the completed-contract to...
Blue Construction Company, which began operations in 2017,
changed from the completed-contract to the percentage-of-completion
method of accounting for long-term construction contracts during
2018. For tax purposes, the company employs the completed-contract
method and will continue this approach in the future. The
appropriate information related to this change is as
follows.
Pretax Income from
Percentage-of-Completion
Completed-Contract
Difference
2017
$966,000
$600,000
$366,000
2018
906,000
434,000
472,000
(a) Assuming that the tax rate is 35%, what is the
amount of net income...
2. During Year 3, Dream Home, Inc. changed to the percentage-of-completion method for financial purposes. It...
2. During Year 3, Dream Home, Inc. changed to the percentage-of-completion method for financial purposes. It will continue to use the completed contract method for tax purposes. Income before taxes under both the methods for Years 1 and 2 are as follows: Completed-Contract Percentage-of-Completion Year 1 $100,000 $180,000 Year 2 $200,000 $250,000 Prepare the journal entry(ies) to change to the percentage-of-completion method. Assume an income tax rate of 20%
Percentage of Completion Problem: The Nifty Construction Company entered into a long-term contract in 2013. The...
Percentage of Completion Problem: The Nifty Construction Company entered into a long-term contract in 2013. The contract price was $1,600,000, and the company initially estimated the total cost of the project to be $1,150,000. The following data pertains to the three years that the contract was in process: 2013 2014 2015 $224,000 $936,000 $1,280,000 Costs incurred to date Estimated costs to complete Billings to date Collections to date 896,000 264,000 0 200,000 1,200,000 1,600,00 170,000 1,070,000 1,500000 Using the percentage...
Ex. 18-127-Percentage-of-completion and completed-contract methods. On February 1, 2012, Marsh Contractors agreed to construct a building...
Ex. 18-127-Percentage-of-completion and completed-contract methods. On February 1, 2012, Marsh Contractors agreed to construct a building at a contract price of $5,400,000. Marsh estimated total construction costs would be $4,000,000 and the project would be finished in 2014. Information relating to the costs and billings for this contract is as follows: 2014 2012 $1,500,000 2,500,000 2,200,000 2,000,000 2013 $4,600,000 $2,640,000 1,760,000 4,000,000 3,500,000 Total costs incurred to date Estimated costs to complete Customer billings to date Collections to date -0-...
Exercise 22-1 Monty Construction any changed from the comed-contract to the percent method and will continue...
Exercise 22-1 Monty Construction any changed from the comed-contract to the percent method and will continue this proach in the future. Ad alta com of completion method of e s through the Deferred to using for long-term construction s account. The programmation 2018 For de change the c ente r s Pretax income from Percentage of Completed Completion Contract 5727.000 $561.000 640.000 490,000 Difference 1.000 190.000 (a) Assuming that the tax is 04. What is the amount of income that...
d. none UI ile dov. 23.During 2018, a construction company changed from the completed-contract method to the percentage- of-completion method for accounting purposes but not for tax purposes. Gross profit figures under both methods for the past three years appear below: Completed-Contract Percentage-of-Completion $ 800,000 2016 $ 475,000 950,000 2017 625,000 2018 1.050,000 700.000 S1.800.000 $2.800.000 Assuming an income tax rate of 40% for all years, the effect of this accounting change on prior periods should be reported by a...
At the beginning of 2017, Culver Construction Company changed
from the completed-contract method to recognizing revenue over time
(percentage-of-completion) for financial reporting purposes. The
company will continue to use the completed-contract method for tax
purposes. For years prior to 2017, pretax income under the two
methods was as follows: percentage-of-completion $110,500, and
completed-contract $72,300. The tax rate is 30%.
Prepare Culver’s 2017 journal entry to record the change in
accounting principle. (Credit account titles are
automatically indented when amount is...
At the beginning of 2017, Stellar Construction Company changed
from the completed-contract method to recognizing revenue over time
(percentage-of-completion) for financial reporting purposes. The
company will continue to use the completed-contract method for tax
purposes. For years prior to 2017, pretax income under the two
methods was as follows: percentage-of-completion $114,200, and
completed-contract $79,400. The tax rate is 40%.
Prepare Stellar’s 2017 journal entry to record the change in
accounting principle. (Credit account titles are
automatically indented when amount is...
At the beginning of 2018, a construction company that began operations in 2016 changed from the completed-contract method to the percentage-of-completion method for accounting purposes but not for tax purposes. Gross profit figures under both methods for the past three years appear below: Completed-Contract Percentage-of-Completion 2016 $ 950,000 $ 1,800,000 2017 1,250,000 1,900,000 2018 1,400,000 2,100,000 Assuming an income tax rate of 30% for all years, the effect of this accounting change on prior periods should be reported by f...
Blue Construction Company, which began operations in 2017,
changed from the completed-contract to the percentage-of-completion
method of accounting for long-term construction contracts during
2018. For tax purposes, the company employs the completed-contract
method and will continue this approach in the future. The
appropriate information related to this change is as
follows.
Pretax Income from
Percentage-of-Completion
Completed-Contract
Difference
2017
$966,000
$600,000
$366,000
2018
906,000
434,000
472,000
(a) Assuming that the tax rate is 35%, what is the
amount of net income...
2. During Year 3, Dream Home, Inc. changed to the percentage-of-completion method for financial purposes. It will continue to use the completed contract method for tax purposes. Income before taxes under both the methods for Years 1 and 2 are as follows: Completed-Contract Percentage-of-Completion Year 1 $100,000 $180,000 Year 2 $200,000 $250,000 Prepare the journal entry(ies) to change to the percentage-of-completion method. Assume an income tax rate of 20%
Percentage of Completion Problem: The Nifty Construction Company entered into a long-term contract in 2013. The contract price was $1,600,000, and the company initially estimated the total cost of the project to be $1,150,000. The following data pertains to the three years that the contract was in process: 2013 2014 2015 $224,000 $936,000 $1,280,000 Costs incurred to date Estimated costs to complete Billings to date Collections to date 896,000 264,000 0 200,000 1,200,000 1,600,00 170,000 1,070,000 1,500000 Using the percentage...
Ex. 18-127-Percentage-of-completion and completed-contract methods. On February 1, 2012, Marsh Contractors agreed to construct a building at a contract price of $5,400,000. Marsh estimated total construction costs would be $4,000,000 and the project would be finished in 2014. Information relating to the costs and billings for this contract is as follows: 2014 2012 $1,500,000 2,500,000 2,200,000 2,000,000 2013 $4,600,000 $2,640,000 1,760,000 4,000,000 3,500,000 Total costs incurred to date Estimated costs to complete Customer billings to date Collections to date -0-...
Exercise 22-1 Monty Construction any changed from the comed-contract to the percent method and will continue this proach in the future. Ad alta com of completion method of e s through the Deferred to using for long-term construction s account. The programmation 2018 For de change the c ente r s Pretax income from Percentage of Completed Completion Contract 5727.000 $561.000 640.000 490,000 Difference 1.000 190.000 (a) Assuming that the tax is 04. What is the amount of income that...
Most questions answered within 3 hours.
-
The random variable X is exponentially distributed, where X
represents the time it takes for a...
asked 8 minutes ago -
a) Write a verilog module for 1:4 Demultiplexer using verilog
primitives.
b) Design 1-to-4 DEMUX using...
asked 3 minutes ago -
MATLAB
write a MATLAB function (1) output a third-order polynomial
function with the coefficients as the...
asked 16 minutes ago -
A z-score
communicates a raw score’s "relative standing"
under the normal curve in relation to:
asked 24 minutes ago -
An object is vibrating on a spring with the following equation
of motion:
?=(30 ??)cos((2?)/(160)?)
a)...
asked 23 minutes ago -
Vulcan Flyovers offers scenic overflights of Mount St. Helens,
the volcano in Washington State that explosively...
asked 26 minutes ago -
If organizations do not adapt fast enough and move incrementally
from the twentieth-century model to the...
asked 27 minutes ago -
A helium balloon with 2.5L of gas has a gauge pressure of 10,000
Pa. The balloon...
asked 31 minutes ago -
What is responsible for Jupiter's enormous magnetic field?
asked 46 minutes ago -
At the end of the year, a company offered to buy 5,000 units of
a product...
asked 48 minutes ago -
Implement C++ program for each of the following.
Let D = [-48, -14, -8, 0, 1,...
asked 1 hour ago -
Consider a labor market in which LD = 400 – 4W and LS = 250 +...
asked 1 hour ago