How can deferred asset even equal $3,000 if it isn't taken out
until 209. They are asking for 2018, and it goes $3,000 in each
year starting from 2019 to 2021. I use the intermediate accounting
2 book by Spiceland, 9th edition. This is problem
Ch.16-10-BE.
Homework Answers
Difference between taxable income - pretax accounting income is
equal to warranty expense
Warranty Expense = $300,000 - $291,000 = $9000
Warranty Expense $9000 would be divided into equal payments
.($9000/3) = $3000
Deferred Tax assets arise when the tax amount has been carried
forward but still has not been recognized in income
statement.
For year 2018 journal entry its has arise but not yet paid they
just made the income tax provision that's why it has shown in year
2018
Add Answer to:
How can deferred asset even equal $3,000 if it isn't taken out
until 209. They are...
At the end of 2017, Payne Industries had a deferred tax asset account with a balance...
At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $40 million attributable to a temporary book- tax difference of $100 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $90 million. Payne has no other temporary differences. Taxable income for 2018 is $250 million and the tax rate is 40%. Payne has a valuation allowance of $12 million for the deferred tax asset at the...
This is chapter 16 E-11 of Intermediate Accounting 2 by the authors Spiceland, Nelson, and Thomas....
This is chapter 16 E-11 of Intermediate Accounting 2 by the
authors Spiceland, Nelson, and Thomas.
If deferred asset is normally a credit balance when
it is decreased from 30,000,000 to 28,000,000 wouldn't it be
debited in the above journal entry instead of
credited?
At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $30 million attributable to a temporary book-tax difference of $75 million in a liability for estimated expenses. At the...
At the end of 2017, Payne Industries had a deferred tax asset account with a balance...
At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $30 million attributable to a temporary book–tax difference of $75 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $70 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2018 is $225 million and the tax rate is 40%. Required: 1. Prepare the journal entry(s) to...
At the end of 2017, Payne Industries had a deferred tax asset account with a balance...
At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $30 million attributable to a temporary book–tax difference of $75 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $60 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2018 is $235 million and the tax rate is 40%. Required: 1. Prepare the journal entry(s) to...
At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $30 million attributable to a t...
At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $30 million attributable to a temporary book- tax difference of $75 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $70 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2018 is $180 million and the tax rate is 40%. Required: 1.Prepare the journal entry(s) to...
At the end of 2017, Payne Industries had a deferred tax asset account with a balance...
At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $38 million attributable to a temporary book-tax difference of $95 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $90 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2018 is $190 million and the tax rate is 40%. Required: 1. Prepare the journal entry(s) to...
Exercise 19-12 Pronghorn Corp. has a deferred tax asset account with a balance of $154,400 at...
Exercise 19-12 Pronghorn Corp. has a deferred tax asset account with a balance of $154,400 at the end of 2016 due to a single cumulative temporary difference of $386,000. At the end of 2017, this same temporary difference has increased to a cumulative amount of $440,000. Taxable income for 2017 is $819,000. The tax rate is 40% for all years. No valuation account related to the deferred tax asset is in existence at the end of 2016. (a) Record income...
At the end of 2020, Payne Industries had a deferred tax asset account with a balance...
At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $115 million attributable to a temporary book- tax difference of $460 million in a liability for estimated expenses. At the end of 2021, the temporary difference is $352 million. Payne has no other temporary differences. Taxable income for 2021 is $828 million and the tax rate is 25%. Payne has a valuation allowance of $46 million for the deferred tax asset at the...
At the end of 2017, Payne Industries had a deferred tax asset account with a balance...
At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $32 million attributable to a temporary book- tax difference of $80 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $60 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2018 is $175 million and the tax rate is 40%. Required: 1. Prepare the journal entry(s)...
Exercise 16-10 Deferred tax asset; taxable income given; valuation allowance (L016-3] At the end of 2017,...
Exercise 16-10 Deferred tax asset; taxable income given; valuation allowance (L016-3] At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $34 million attributable to a temporary book- tax difference of $85 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $80 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2018 is $185 million and...
At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $40 million attributable to a temporary book- tax difference of $100 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $90 million. Payne has no other temporary differences. Taxable income for 2018 is $250 million and the tax rate is 40%. Payne has a valuation allowance of $12 million for the deferred tax asset at the...
This is chapter 16 E-11 of Intermediate Accounting 2 by the
authors Spiceland, Nelson, and Thomas.
If deferred asset is normally a credit balance when
it is decreased from 30,000,000 to 28,000,000 wouldn't it be
debited in the above journal entry instead of
credited?
At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $30 million attributable to a temporary book-tax difference of $75 million in a liability for estimated expenses. At the...
At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $30 million attributable to a temporary book- tax difference of $75 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $70 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2018 is $180 million and the tax rate is 40%. Required: 1.Prepare the journal entry(s) to...
At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $38 million attributable to a temporary book-tax difference of $95 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $90 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2018 is $190 million and the tax rate is 40%. Required: 1. Prepare the journal entry(s) to...
Exercise 19-12 Pronghorn Corp. has a deferred tax asset account with a balance of $154,400 at the end of 2016 due to a single cumulative temporary difference of $386,000. At the end of 2017, this same temporary difference has increased to a cumulative amount of $440,000. Taxable income for 2017 is $819,000. The tax rate is 40% for all years. No valuation account related to the deferred tax asset is in existence at the end of 2016. (a) Record income...
At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $115 million attributable to a temporary book- tax difference of $460 million in a liability for estimated expenses. At the end of 2021, the temporary difference is $352 million. Payne has no other temporary differences. Taxable income for 2021 is $828 million and the tax rate is 25%. Payne has a valuation allowance of $46 million for the deferred tax asset at the...
At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $32 million attributable to a temporary book- tax difference of $80 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $60 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2018 is $175 million and the tax rate is 40%. Required: 1. Prepare the journal entry(s)...
Exercise 16-10 Deferred tax asset; taxable income given; valuation allowance (L016-3] At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $34 million attributable to a temporary book- tax difference of $85 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $80 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2018 is $185 million and...
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