At December 31, DePaul Corporation had a $26 million balance in its deferred tax asset account...
At December 31, DePaul Corporation had a $26 million balance in its deferred tax asset account and a $102 million balance in its deferred tax liability account. The balances were due to the following cumulative temporary differences :
1. Estimated warranty expense, $35 million: expense recorded in the year of sale; tax-deductible when paid (one-year warranty)
2. Depreciation expense, $180 million: straight line in the income statement; MACRS on the tax return
3. Income from installment sales of properties, $75 million: income recorded in the year of the sale; taxable when received equally over the next five years
4. Rent revenue collected in advance, $30 million; taxable in the year collected; recorded as income when the performance obligation is satisfied in the following year
Assuming DePaul will show a single noncurrent net amount in its December 31 balance sheet, indicate that amount and whether it is a net deferred tax asset or liability. The tax rate is 40%. Determine the deferred tax amounts to be reported in the December 31 balance sheet. The tax rate is 40%.
Homework Answers
This is shown in balance sheet as
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Before offsetting assets and liabilities within the current and non-current categories, the total deferred tax assets is 14+12 = $ 26 million and deferred tax liability is 6+72+24 = $ 102 million
Notes :
Current portion of income from instalment sales = 75/5 = $ 15 million
The balance amount is non- current portion as = 75-15 = $ 60 million
Kindly upvote
Add Answer to:
At December 31, DePaul Corporation had a $26 million balance in
its deferred tax asset account...
At December 31, DePaul Corporation had a $30 million balance in its deferred tax asset account...
At December 31, DePaul Corporation had a $30 million balance in its deferred tax asset account and a $158 million balance in its deferred tax liability account. The balances were due to the following cumulative temporary differences: 1. Estimated warranty expense, $35 million: expense recorded in the year of the sale; tax-deductible when paid (one-year warranty). 2. Depreciation expense, $270 million: straight-line in the income statement; MACRS on the tax return. 3. Income from installment sales of properties, $125 million:...
At December 31, DePaul Corporation had a $9 million balance in its deferred tax asset account...
At December 31, DePaul Corporation had a $9 million balance in its deferred tax asset account and a $72 million balance in its deferred tax liability account. The balances were due to the following cumulative temporary differences: 1. Estimated warranty expense, $10 million: expense recorded in the year of the sale; tax-deductible when paid (one-year warranty). 2. Depreciation expense, $140 million: straight-line in the income statement; MACRS on the tax return. 3. Income from installment sales of properties, $100 million:...
Accounting: At December 31, DePaul Corporation had a $4 million balance in its deferred tax asset account and a $37 mill...
Accounting: At December 31, DePaul Corporation had a $4 million balance in its deferred tax asset account and a $37 million balance in its deferred tax liability account. The balances were due to the following cumulative temporary differences: Estimated warranty expense, $10 million: expense recorded in the year of the sale; tax-deductible when paid (one-year warranty). Depreciation expense, $110 million: straight-line in the income statement; MACRS on the tax return. Income from installment sales of properties, $75 million: income recorded...
At December 31, DePaul Corporation had the following cumulative temporary differences associated with its operations: 1....
At December 31, DePaul Corporation had the following cumulative temporary differences associated with its operations: 1. Estimated warranty expense, $24 million temporary difference: expense recorded in the year of the sale, tax-deductible when paid (one-year warranty). 2. Depreciation expense, $104 million temporary difference: straight-line in the income statement: MACRS on the tax return. 3. Income from installment sales of properties. $80 million temporary difference: income recorded in the year of the sale: taxable when received equally over the next five...
6) For reporting purposes, deferred tax assets and deferred tax labilities for the same company and...
6) For reporting purposes, deferred tax assets and deferred tax labilities for the same company and tax jurisdiction are: a. Reported separately in the balance sheet. b. Reflected only in the notes to the financial statements. C. Combined with noncurrent deferred tax assets and noncurrent deferred tax liabilities in the balance sheet to show a single net noncurrent among. d. Netted against one another and show as a net current asset or liability in the balance sheet. 7) of the...
At December 31, 2024 Hopper Corp. had the following deferred income tax items: Deferred tax asset...
At December 31, 2024 Hopper Corp. had the following deferred income tax items: Deferred tax asset of 56 million related to a current liability Deferred tax asset of 38 million related to a concurrent liability Deferred tax liability of 122 million related to a concurrent asset Deferred tax liability of 74 million related to a current asset Hopper Corp. should report in its December 31, 2024 balance sheet; Noncurrent deferred tax asset of 90 million and a non current deferred...
3. At January 1, 2018, HD had a deferred tax asset of 590 million with no...
3. At January 1, 2018, HD had a deferred tax asset of 590 million with no valuation allowance. At December 31, 2018, the account balances of HD Services showed a deferred tax asset ofS120 million befre assessing the need for a valuation allowance and income taxes payable of 580 million. HD determined that it was more likely that 30% of the deferred tax asset ultimately would not be realized. HD made no estimmated tat payments during 2018. What amount should...
At December 31, 20X4, MJB Co. had the following deferred income tax items:
At December 31, 20X4, MJB Co. had the following deferred income tax items: • A deferred income tax liability of $15,000 related to a noncurrent asset • A deferred income tax asset of $3,000 related to a current liability • A deferred income tax liability of $8,000 related to a current asset Which of the following should MJB report in the noncurrent section(s) of its December 31, 20X4 balance sheet? Select one: a. DTL of $8,000 in Noncurrent Liabilities, DTA of $3,000 in Noncurrent Assets b. Net...
2) At the end of 2017, Hoover company had reported a deferred tax asset of $72...
2) At the end of 2017, Hoover company had reported a deferred tax asset of $72 million with no valuation allowance. At December 31, 2018, the account balances of Hoover showed a deferred tax asset of $80 million before assessing the need for a valuation allowance and income taxes payable of $56 million. Hoover determined that it was more likely than not that 20% of the deferred tax asset ultimately would not be realized. Hoover made no estimated tax payuments...
General Question/Exercise 16-17 Deferred Tax Classification The company has the following balances in its deferred tax...
General Question/Exercise 16-17 Deferred Tax Classification The company has the following balances in its deferred tax asset and liability accounts at the end of 2019. Each tax asset or liability is related to a specific asset or liability account that gave rise to it. Account Balance Related Asset or Liability Deferred tax asset $ 25,600 Accounts receivable-current Deferred tax asset $ 18,400 Pension Liability-noncurrent Deferred tax liability $ 10,000 Installment sale-current Deferred tax liability $ 22,000 Property, plant, & Equipment-noncurrent...
At December 31, DePaul Corporation had a $30 million balance in its deferred tax asset account and a $158 million balance in its deferred tax liability account. The balances were due to the following cumulative temporary differences: 1. Estimated warranty expense, $35 million: expense recorded in the year of the sale; tax-deductible when paid (one-year warranty). 2. Depreciation expense, $270 million: straight-line in the income statement; MACRS on the tax return. 3. Income from installment sales of properties, $125 million:...
At December 31, DePaul Corporation had a $9 million balance in its deferred tax asset account and a $72 million balance in its deferred tax liability account. The balances were due to the following cumulative temporary differences: 1. Estimated warranty expense, $10 million: expense recorded in the year of the sale; tax-deductible when paid (one-year warranty). 2. Depreciation expense, $140 million: straight-line in the income statement; MACRS on the tax return. 3. Income from installment sales of properties, $100 million:...
At December 31, DePaul Corporation had the following cumulative temporary differences associated with its operations: 1. Estimated warranty expense, $24 million temporary difference: expense recorded in the year of the sale, tax-deductible when paid (one-year warranty). 2. Depreciation expense, $104 million temporary difference: straight-line in the income statement: MACRS on the tax return. 3. Income from installment sales of properties. $80 million temporary difference: income recorded in the year of the sale: taxable when received equally over the next five...
6) For reporting purposes, deferred tax assets and deferred tax labilities for the same company and tax jurisdiction are: a. Reported separately in the balance sheet. b. Reflected only in the notes to the financial statements. C. Combined with noncurrent deferred tax assets and noncurrent deferred tax liabilities in the balance sheet to show a single net noncurrent among. d. Netted against one another and show as a net current asset or liability in the balance sheet. 7) of the...
3. At January 1, 2018, HD had a deferred tax asset of 590 million with no valuation allowance. At December 31, 2018, the account balances of HD Services showed a deferred tax asset ofS120 million befre assessing the need for a valuation allowance and income taxes payable of 580 million. HD determined that it was more likely that 30% of the deferred tax asset ultimately would not be realized. HD made no estimmated tat payments during 2018. What amount should...
2) At the end of 2017, Hoover company had reported a deferred tax asset of $72 million with no valuation allowance. At December 31, 2018, the account balances of Hoover showed a deferred tax asset of $80 million before assessing the need for a valuation allowance and income taxes payable of $56 million. Hoover determined that it was more likely than not that 20% of the deferred tax asset ultimately would not be realized. Hoover made no estimated tax payuments...
General Question/Exercise 16-17 Deferred Tax Classification The company has the following balances in its deferred tax asset and liability accounts at the end of 2019. Each tax asset or liability is related to a specific asset or liability account that gave rise to it. Account Balance Related Asset or Liability Deferred tax asset $ 25,600 Accounts receivable-current Deferred tax asset $ 18,400 Pension Liability-noncurrent Deferred tax liability $ 10,000 Installment sale-current Deferred tax liability $ 22,000 Property, plant, & Equipment-noncurrent...
Most questions answered within 3 hours.
-
Show that min x^2, s.t. x>=2 has strong duality.
asked 10 seconds from now -
Using curved arrows show how the intermediate formed in this
reaction (Hexaphenylbenzene is prepared through a...
asked 5 minutes ago -
Two lightbulbs operate on the same current. Bulb A has four
times the power output of...
asked 1 minute ago -
1. What five (5) basic parameters need to be measured
during a pump test in order...
asked 13 minutes ago -
One student ran a TLC of an unknown compound on a
silica gel plate and the...
asked 16 minutes ago -
Use inheritance to create a new class AudioRecording
based on Recording class that:
it will retain...
asked 21 minutes ago -
In the long run, an increase in the quantity of money ________
the value of money...
asked 27 minutes ago -
In February 2008, a team of Canadian scientists revealed rare
new horseshoe crab fossils from 445...
asked 32 minutes ago -
a firm produces output according to the following function q=
f(L,K) = L^1/2K^3/2. The cost of...
asked 31 minutes ago -
Please
NO HANDWRITING
NO COPY & PASTE from the internet
On March 6, 2019, Mark Zuckerberg...
asked 32 minutes ago -
Please make a JAVA program for the following using switch
structures
Write a program that simulates...
asked 35 minutes ago -
in
2011, real gdp in the united states was below potential gdp. This
fact definitely means...
asked 36 minutes ago