Journal Entry ($ in Million) | |||
Transaction | Account Tittle | Debit | Credit |
1 | Income Tax Expense (bf) | $3.43 | |
Deferred Tax Liability ( 22-13)*25% | $0.18 | ||
Income Tax Payable ( 13X25%) | $3.25 |
A company reports 2021 pretax accounting Income of $22 million, but because of a single temporary...
A company reports pretax accounting income of $30 million, but because of a single temporary difference, taxable income is $32 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Prepare the appropriate journal entry to record Income taxes. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (I.e., 5,500,000 should be entered as...
Check my 2 A company reports pretax accounting income of $24 million, but because of a single temporary difference, taxable income is $26 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%. 0.89 points Prepare the appropriate journal entry to record income taxes. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e.,...
help asap please A company reports 2021 pretax accounting income of $70 million, but because of a single temporary difference, taxable income is only $37 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Prepare the appropriate journal entry to record income taxes. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in millions rounded to 2 decimal places (.e.,...
A company reports pretax accounting income of $50 million, but because of a single temporary difference, taxable income is $52 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%.Prepare the appropriate journal entry to record income taxes.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).
The information that follows pertains to Richards Refrigeration, Inc.: a. At December 31, 2021, temporary differences existed between the financial statement book values and the tax bases of the following: (s in millions) Future Taxable Tax (Deductible) Basis Amount $90 $ 30 50 B (25) Book Value $120 50 25 Buildings and equipment (net of accumulated depreciation) Prepaid insurance Liability-loss contingency b. No temporary differences existed at the beginning of 2021. c. Pretax accounting Income was $200 million and taxable...
Fore Farms reported a pretax operating loss of $136 million for financial reporting purposes in 2021. Contributing to the loss were (a) a penalty of $4 million assessed by the Environmental Protection Agency for violation of a federal law and paid in 2021 and (b) an estimated loss of $10 million from accruing a loss contingency. The loss will be tax deductible when paid in 2022 The enacted tax rate is 25%. There were no temporary differences at the beginning...
Allmond Corporation, organized on January 3, 2021, had pretax accounting Income of $16 million and taxable income of $22 million for the year ended December 31, 2021. The 2021 tax rate is 25%. The only difference between accounting Income and taxable income is estimated product warranty costs. Assume that expected payments and scheduled tax rates (based on recently enacted tax legislation) are as follows: 2022 2023 2024 2025 $1 million 2 million 2 million 1 million 30% 3e% 20% Required:...
The information that follows pertains to Esther Food Products: a. At December 31, 2021, temporary differences were associated with the following future taxable (deductible) amounts: Depreciation $ 42,000 Prepaid expenses 16,000 Warranty expenses (14,000) b. No temporary differences existed at the beginning of 2021. c. Pretax accounting income was $58,000 and taxable income was $14,000 for the year ended December 31, 2021. d. The tax rate is 25%. Required: Complete the following table given below and prepare the appropriate journal...
Arndt, Inc. reported the following for 2021 and 2022 ($ in millions): 2021 2022 Revenues $ 956 $ 1,048 Expenses 812 868 Pretax accounting income (income statement) $ 144 $ 180 Taxable income (tax return) $ 88 $ 214 Tax rate: 25% Expenses each year include $74 million from a two-year casualty insurance policy purchased in 2021 for $148 million. The cost is tax deductible in 2021. Expenses include $2 million insurance premiums each year for life insurance on key...
The information that follows pertains to Richards Refrigeration, Inc.: a. At December 31, 2018, temporary differences existed between the financial statement carrying amounts and the tax bases of the following: $ in Carrying Tax Amount Basis $134 $97 illions) Future Taxable Deductible) Amount $ 37 Buildings and equipment (net of accumulated depreciation) Prepaid insurance Liability-loss contingency (32) b. No temporary differences existed at the beginning of 2018 c. Pretax accounting income was $207 million and taxable income was $145 million...