Homework Answers
Solution:
Journal Entry related to the recognition of any benefit from carry forward will be:
Deferred tax assets Dr
To Income tax Benefits
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Verena Inc. earned income in 20x4 and suffered a loss for tax purposes in 20x5. Assume...
For both GAAP and tax purposes, Raymond Incorporated reported the following pre-tax income (loss) for each...
For both GAAP and tax purposes, Raymond Incorporated reported the following pre-tax income (loss) for each of the years: Year Pre-tax income Tax Rate 2018 $180,000 30% 2019 120,000 30% 2020 (400,000) 40% 2021 80,000 40% Required: Prepare all the necessary journal entries for each year 2018-2021 to record income tax expense (benefit) and income tax payable (refundable), and the tax effects of the loss carry forward. (Assume that no valuation allowance is required) Additional Notes Income Taxes (Topic 740),...
Wynn Farms reported a net operating loss of $240,000 for financial reporting and tax purposes in...
Wynn Farms reported a net operating loss of $240,000 for financial reporting and tax purposes in 2021. The enacted tax rate is 25%. Taxable income tax rates, and income taxes paid in Wynn's first four years of operation were as follows: 2017 2018 2919 2920 Taxable Income $ 76, eee 86.293 160.09 4 . eee Tax Rates 38% 39 49 45 Income Taxes Paid $22,800 25,899 64, eee 18,000 Required: 1. NOL carrybacks are not allowed for most companies, except...
Wynn Farms reported a net operating loss of $185,000 for financial reporting and tax purposes In...
Wynn Farms reported a net operating loss of $185,000 for financial reporting and tax purposes In 2021. The enacted tax rate is 25%. Taxable income, tax rates, and income taxes paid In Wynn's first four years of operation were as follows: 2017 2018 2019 2020 Taxable Income $ 65,000 75,000 105,200 60,000 Tax Rates 30% 30 40 45 Income Taxes Paid $19,500 22,500 42,00 27,000 Required: 1. NOL carrybacks are not allowed for most companies, except for property and casualty...
Wynn Farms reported a net operating loss of $250,000 for financial reporting and tax purposes in...
Wynn Farms reported a net operating loss of $250,000 for
financial reporting and tax purposes in 2021. The enacted tax rate
is 25%. Taxable income, tax rates, and income taxes paid in Wynn’s
first four years of operation were as follows:
Taxable
Income
Tax
Rates
Income Taxes
Paid
2017
$
78,000
30
%
$
23,400
2018
88,000
30
26,400
2019
170,000
40
68,000
2020
40,000
45
18,000
Required:
1. NOL carrybacks are not allowed for most
companies, except for property...
Insure Corporation reported a net operating loss of $18 million for financial reporting and tax purposes....
Insure Corporation reported a net operating loss of $18 million for financial reporting and tax purposes. Taxable income last year and the previous year, respectively, was $19 million and $14 million. The enacted tax rate each year is 25%. Assume that Insure qualifies as a type of company that is allowed to carry back an NOL to two prior taxable years, using the earliest year first. Prepare the journal entry to recognize the income tax benefit of the net operating...
Sandhill Inc. reports the following pretax income (loss) for both book and tax purposes. (Assume the...
Sandhill Inc. reports the following pretax income (loss) for both book and tax purposes. (Assume the carryback provision is used where possible for a net operating loss.) Year Pretax Income (Loss) Tax Rate 2015 $121,000 40 % 2016 93,000 40 % 2017 (287,000 ) 45 % 2018 129,000 45 % The tax rates listed were all enacted by the beginning of 2015. Prepare the journal entries for years 2015–2018 to record income tax expense (benefit) and income taxes payable (refundable),...
Pina Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes....
Pina Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. (Assume the carryback provision is used for a net operating loss.) Year Pretax Income (Loss) Tax Rate 2015 $118,000 34 % 2016 90,000 34 % 2017 (296,000 ) 38 % 2018 229,000 38 % The tax rates listed were all enacted by the beginning of 2015. Collapse question part (a) Prepare the journal entries for the years 2015–2018 to record income tax expense (benefit)...
Wynn Farms reported a net operating loss of $100,000 for financial reporting and tax purposes in...
Wynn Farms reported a net operating loss of $100,000 for financial reporting and tax purposes in 2021. The enacted tax rate is 25%. Taxable income, tax rates, and income taxes paid in Wynn's first four years of operation were as follows: 2017 2018 2019 2020 Taxable Income $60,000 70,000 80,000 60,000 Tax Rates 15% 15 25 30 Income Taxes Paid $ 9,000 10,500 20,000 18,000 Required: 1. Prepare the journal entry to recognize the income tax benefit of the net...
Wynn Sheet Metal reported an operating loss of $162,000 for financial reporting and tax purposes in...
Wynn Sheet Metal reported an operating loss of $162,000 for financial reporting and tax purposes in 2018. The enacted tax rate is 40 % Taxable income, tax rates, and income taxes paid in Wynn's first four years of operation were as follows: Taxable Tax Income Rates Income Taxes Paid $18, 300 21,300 32,400 27,450 2014 $61,000 30% 2015 71,000 30 2016 81,000 40 2017 61,000 45 Required: 1. Complete the following table given below and prepare the journal entry to...
income tax problem
The McGuire Company manufactures and sells stamping machines used to produce body panels for automobiles. In 20X1, the company reported pretax GAAP income of $7,250,000. Included in this amount was municipal bond interest of $27,000. McGuire insured the lives of key executives at a cost of $17,000 and paid non-deductible fines of $52,000.The company depreciates assets for GAAP and tax purposes as follows:Book Tax Difference20X1 1,400,000 2,840,000 (1,440,000)20X2 1,400,000 2,510,000 (1,110,000)20X3 1,400,000 2,240,000 (840,000)20X4 1,400,000 1,970,000 (570,000)20X5 1,400,000 1,680,000 (280,000)20X6...
Wynn Farms reported a net operating loss of $240,000 for financial reporting and tax purposes in 2021. The enacted tax rate is 25%. Taxable income tax rates, and income taxes paid in Wynn's first four years of operation were as follows: 2017 2018 2919 2920 Taxable Income $ 76, eee 86.293 160.09 4 . eee Tax Rates 38% 39 49 45 Income Taxes Paid $22,800 25,899 64, eee 18,000 Required: 1. NOL carrybacks are not allowed for most companies, except...
Wynn Farms reported a net operating loss of $185,000 for financial reporting and tax purposes In 2021. The enacted tax rate is 25%. Taxable income, tax rates, and income taxes paid In Wynn's first four years of operation were as follows: 2017 2018 2019 2020 Taxable Income $ 65,000 75,000 105,200 60,000 Tax Rates 30% 30 40 45 Income Taxes Paid $19,500 22,500 42,00 27,000 Required: 1. NOL carrybacks are not allowed for most companies, except for property and casualty...
Wynn Farms reported a net operating loss of $250,000 for
financial reporting and tax purposes in 2021. The enacted tax rate
is 25%. Taxable income, tax rates, and income taxes paid in Wynn’s
first four years of operation were as follows:
Taxable
Income
Tax
Rates
Income Taxes
Paid
2017
$
78,000
30
%
$
23,400
2018
88,000
30
26,400
2019
170,000
40
68,000
2020
40,000
45
18,000
Required:
1. NOL carrybacks are not allowed for most
companies, except for property...
Insure Corporation reported a net operating loss of $18 million for financial reporting and tax purposes. Taxable income last year and the previous year, respectively, was $19 million and $14 million. The enacted tax rate each year is 25%. Assume that Insure qualifies as a type of company that is allowed to carry back an NOL to two prior taxable years, using the earliest year first. Prepare the journal entry to recognize the income tax benefit of the net operating...
Wynn Farms reported a net operating loss of $100,000 for financial reporting and tax purposes in 2021. The enacted tax rate is 25%. Taxable income, tax rates, and income taxes paid in Wynn's first four years of operation were as follows: 2017 2018 2019 2020 Taxable Income $60,000 70,000 80,000 60,000 Tax Rates 15% 15 25 30 Income Taxes Paid $ 9,000 10,500 20,000 18,000 Required: 1. Prepare the journal entry to recognize the income tax benefit of the net...
Wynn Sheet Metal reported an operating loss of $162,000 for financial reporting and tax purposes in 2018. The enacted tax rate is 40 % Taxable income, tax rates, and income taxes paid in Wynn's first four years of operation were as follows: Taxable Tax Income Rates Income Taxes Paid $18, 300 21,300 32,400 27,450 2014 $61,000 30% 2015 71,000 30 2016 81,000 40 2017 61,000 45 Required: 1. Complete the following table given below and prepare the journal entry to...
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