Homework Answers
ANSWER
As per the given question,
Income Tax Expense $ 7,500,000
Deferred Tax Liability $ 500,000
To Income Tax Payable $ 8,000,000
( To Record Income Tax)
Calculate various values as follows:
Income Tax expense = Pretax accounting income * Tax Rate
=$30,000,000* 25%
= $7,500,000
Deferred tax liability =(Taxable Income- Pretax accounting income)*tax rate
($32 million-$30million)*25%
$2,000,000*25%
$ 500,000.
Income tax payable=taxable income*Tax rate
= $ 32,000,000* 25%
= $ 8,000,000
Kindly Rate
Add Answer to:
A company reports pretax accounting income of $30 million, but because of a single temporary difference,...
A company reports 2021 pretax accounting Income of $22 million, but because of a single temporary...
A company reports 2021 pretax accounting Income of $22 million, but because of a single temporary difference, taxable income is only $13 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 fleld. Enter your answers in millions rounded to 2 decimal place (I.e., 5,500,000 should be...
Check my 2 A company reports pretax accounting income of $24 million, but because of a...
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.,...
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 journa
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).
help asap please A company reports 2021 pretax accounting income of $70 million, but because of...
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.,...
The information that follows pertains to Richards Refrigeration, Inc.: a. At December 31, 2018, temporary dif...
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...
Allmond Corporation, organized on January 3, 2021, had pretax accounting Income of $16 million and taxable...
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 Richards Refrigeration, Inc.: a. At December 31, 2018, temporary differences...
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: (S in millions) Future Taxable Carrying Amount $136 (Deductible) Тах Вавів Amount Buildings and equipment (net of accumulated depreciation) Prepaid insur ance Liability-loss contingency $98 0 $38 58 58 0 (33) 33 b. No temporary differences existed at the beginning of 2018. c. Pretax accounting income was $208 million and...
The information that follows pertains to Richards Refrigeration, Inc.: a. At December 31, 2018, temporary differences...
The information that follows pertains to Richards Refrigeration, Inc.: a. At December 31, 2018, temporary differences existed between the financial statement carrying amounts and the tax bases of the following: ($ in millions) Future Taxable Carrying Tax (Deductible) Amount Basis Amount $ 148 $ 104 $ 44 64 39 (39) Buildings and equipment (net of accumulated depreciation) Prepaid insurance Liability-loss contingency 64 b. No temporary differences existed at the beginning of 2018. c. Pretax accounting income was $214 million and...
At the end of the year, the deferred tax asset account had a balance of $8...
At the end of the year, the deferred tax asset account had a balance of $8 million attributable to a temporary difference of $32 million in a liability for estimated expenses. Taxable income is $72 million. No temporary differences existed at the beginning of the year, and the tax rate is 25% Prepare the journal entry(s) to record income taxes, assuming it is more likely than not that three-fourths of the deferred tax asset will not ultimately be realized. (If...
Fores construction company reported a pretax operating loss of $240 million for financial reporting purposes in...
Fores construction company reported a pretax operating loss of
$240 million for financial reporting purposes in 2018. Contributing
to the loss were (a) a penalty of $15 million assessed by the
Environmental Protection Agency for violation of a federal law and
paid in 2018 and (b) an estimated loss of $20 million form accruing
a loss contingency. The loss will be tax deductible when paid in
2019.
The enacted tax rate is 40%. There were no temporary differences
at the...
A company reports 2021 pretax accounting Income of $22 million, but because of a single temporary difference, taxable income is only $13 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 fleld. Enter your answers in millions rounded to 2 decimal place (I.e., 5,500,000 should be...
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.,...
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...
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 Richards Refrigeration, Inc.: a. At December 31, 2018, temporary differences existed between the financial statement carrying amounts and the tax bases of the following: (S in millions) Future Taxable Carrying Amount $136 (Deductible) Тах Вавів Amount Buildings and equipment (net of accumulated depreciation) Prepaid insur ance Liability-loss contingency $98 0 $38 58 58 0 (33) 33 b. No temporary differences existed at the beginning of 2018. c. Pretax accounting income was $208 million and...
The information that follows pertains to Richards Refrigeration, Inc.: a. At December 31, 2018, temporary differences existed between the financial statement carrying amounts and the tax bases of the following: ($ in millions) Future Taxable Carrying Tax (Deductible) Amount Basis Amount $ 148 $ 104 $ 44 64 39 (39) Buildings and equipment (net of accumulated depreciation) Prepaid insurance Liability-loss contingency 64 b. No temporary differences existed at the beginning of 2018. c. Pretax accounting income was $214 million and...
At the end of the year, the deferred tax asset account had a balance of $8 million attributable to a temporary difference of $32 million in a liability for estimated expenses. Taxable income is $72 million. No temporary differences existed at the beginning of the year, and the tax rate is 25% Prepare the journal entry(s) to record income taxes, assuming it is more likely than not that three-fourths of the deferred tax asset will not ultimately be realized. (If...
Fores construction company reported a pretax operating loss of
$240 million for financial reporting purposes in 2018. Contributing
to the loss were (a) a penalty of $15 million assessed by the
Environmental Protection Agency for violation of a federal law and
paid in 2018 and (b) an estimated loss of $20 million form accruing
a loss contingency. The loss will be tax deductible when paid in
2019.
The enacted tax rate is 40%. There were no temporary differences
at the...
Most questions answered within 3 hours.
-
which of the following statements is false?
A. The realized return is the total return we...
asked 5 minutes ago -
Project 2
Description
Create a Visual C# project that when an employee's biweekly sales
amount is...
asked 1 minute ago -
what is the corresponding MIPS assembly code for the statements
shown below that written in C....
asked 8 minutes ago -
Fresh Price Accounting, Inc., is a well-known accounting firm
that provides exceptional services to businesses and...
asked 7 minutes ago -
Hiroshi Sato, an owner of a sushi restaurant in San Francisco,
has been following an aggressive...
asked 26 minutes ago -
Part 1-
Calculating the current through the resistor A 59-Ω resistor in
a circuit has a...
asked 48 minutes ago -
Describe the normal pathway through the nervous system when a
stimlus occurs . Be specific in...
asked 27 minutes ago -
Suppose that the one-year interest rate over the next four years
is expected to be 2%,...
asked 49 minutes ago -
A) You are given the following exchange rates: SF in NY:
$1.1259-71
$ in Zurich: SF0.8861-68...
asked 38 minutes ago -
Lauren, Kathryn and Emily are doctors seeking to form a business
entity. The only two requirements...
asked 49 minutes ago -
kims baby, sarah has had a severe bout of diarrhea and is now
dehydrated. is her...
asked 46 minutes ago -
Carbonic acid (H2CO3) is unstable in water and rapidly decomposes i
to CO2(g) and H2O(l). Consequently,...
asked 47 minutes ago