Homework Answers
| No | Account | Debit | Credit |
| 1 | Deferred tax asset | 183,750 | |
| Deferred tax benefit | 183,750 | ||
| (875,000*21%) |
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Saginaw Inc. completed its first year of operations with a pretax loss of $700,000. The tax...
Saginaw Inc. completed its first year of operations with a pretax loss of $700,000. The tax...
Saginaw Inc. completed its first year of operations with a pretax loss of $700,000. The tax return showed a net operating loss of $875,000, which the company will carry forward. The $175,000 book-tax difference results from excess tax depreciation over book depreciation. Management has determined that it should record a valuation allowance equal to the net deferred tax asset. Assuming the current tax expense is zero, prepare the journal entries to record the deferred tax provision and the valuation allowance....
Saginaw Inc. completed its first year of operations with a pretax loss of $512,500. The tax...
Saginaw Inc. completed its first year of operations with a pretax loss of $512,500. The tax return showed a net operating loss of $656,500, which the company wll carry forward. The $144,000 book-tax difference results from excess tax depreclation over book depreclation. Management has determined that It should record a valuation allowance equal to the net deferred tax asset. Assuming the current tax expense is zero, prepare the Journal entries to record the deferred tax provision and the valuation allowance....
Required information (The following information applies to the questions displayed below. Saginaw Inc. completed its first...
Required information (The following information applies to the questions displayed below. Saginaw Inc. completed its first year of operations with a pretax loss of $700,000. The tax return showed a net operating loss of $875,000, which the company will carry forward. The $175,000 book-tax difference results from excess tax depreciation over book depreciation. Management has determined that it should record a valuation allowance equal to the net deferred tax asset. Assuming the current tax expense is zero, prepare the journal...
Saglnaw Inc. completed its first year of operations with a pretax loss of $512500. The tax...
Saglnaw Inc. completed its first year of operations with a pretax loss of $512500. The tax return showed a net operating loss of $656,500, which the company will carry forward. The $144,000 book-tax difference results from excess tax depreclation over book depreclation. Management has determined that It should record a valuation allowance equal to the net deferred tax asset. Assuming the current tax expense is zero, prepare the Journal entries to record the deferred tax provision and the valuation allowance....
21% Tax rate 21% Tax Rate Required information Problem 6-62 (LO 6-3) The following information applies...
21% Tax rate
21% Tax Rate
Required information Problem 6-62 (LO 6-3) The following information applies to the questions displayed below.) Saginaw Inc. completed its first year of operations with a pretax loss of $500,000. The tax return showed a net operating loss of $600,000, which the company will carry forward. The $100,000 book-tax difference results from excess tax depreciation over book depreciation Management has determined that it should record a valuation allowance equal to the net deferred tax asset....
19) Lafayette, Inc., completed its first year of operations with a pretax loss of $800,000. The...
19) Lafayette, Inc., completed its first year of operations with a pretax loss of $800,000. The tax return showed a net operating loss of $750,000. The $50,000 book-tax difference results from a disallowed deduction forbusiness-related meals. Management has determined that they should record a valuation allowance equal to the net deferred tax asset. Prepare the journal entries to record the deferred tax provision and the valuation allowance.
Fore Farms reported a pretax operating loss of $136 million for financial reporting purposes in 2021....
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...
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...
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...
4. Value 10.00 points Elana's Traveling Veterinary Services, Inc., completed its first year of operations on...
4. Value 10.00 points Elana's Traveling Veterinary Services, Inc., completed its first year of operations on December 31. All of the years entries have been recorded except for the following a. On March 1 of the current year, the company borrowed $61,320 at a 10 percent interest rate to be repaid in five years. b. On the last day of the current year, the company received a $470 utility bill for utilities used in December. The bil will be paid...
Saginaw Inc. completed its first year of operations with a pretax loss of $700,000. The tax return showed a net operating loss of $875,000, which the company will carry forward. The $175,000 book-tax difference results from excess tax depreciation over book depreciation. Management has determined that it should record a valuation allowance equal to the net deferred tax asset. Assuming the current tax expense is zero, prepare the journal entries to record the deferred tax provision and the valuation allowance....
Saginaw Inc. completed its first year of operations with a pretax loss of $512,500. The tax return showed a net operating loss of $656,500, which the company wll carry forward. The $144,000 book-tax difference results from excess tax depreclation over book depreclation. Management has determined that It should record a valuation allowance equal to the net deferred tax asset. Assuming the current tax expense is zero, prepare the Journal entries to record the deferred tax provision and the valuation allowance....
Required information (The following information applies to the questions displayed below. Saginaw Inc. completed its first year of operations with a pretax loss of $700,000. The tax return showed a net operating loss of $875,000, which the company will carry forward. The $175,000 book-tax difference results from excess tax depreciation over book depreciation. Management has determined that it should record a valuation allowance equal to the net deferred tax asset. Assuming the current tax expense is zero, prepare the journal...
Saglnaw Inc. completed its first year of operations with a pretax loss of $512500. The tax return showed a net operating loss of $656,500, which the company will carry forward. The $144,000 book-tax difference results from excess tax depreclation over book depreclation. Management has determined that It should record a valuation allowance equal to the net deferred tax asset. Assuming the current tax expense is zero, prepare the Journal entries to record the deferred tax provision and the valuation allowance....
21% Tax rate
21% Tax Rate
Required information Problem 6-62 (LO 6-3) The following information applies to the questions displayed below.) Saginaw Inc. completed its first year of operations with a pretax loss of $500,000. The tax return showed a net operating loss of $600,000, which the company will carry forward. The $100,000 book-tax difference results from excess tax depreciation over book depreciation Management has determined that it should record a valuation allowance equal to the net deferred tax asset....
19) Lafayette, Inc., completed its first year of operations with a pretax loss of $800,000. The tax return showed a net operating loss of $750,000. The $50,000 book-tax difference results from a disallowed deduction forbusiness-related meals. Management has determined that they should record a valuation allowance equal to the net deferred tax asset. Prepare the journal entries to record the deferred tax provision and the valuation allowance.
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...
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...
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...
4. Value 10.00 points Elana's Traveling Veterinary Services, Inc., completed its first year of operations on December 31. All of the years entries have been recorded except for the following a. On March 1 of the current year, the company borrowed $61,320 at a 10 percent interest rate to be repaid in five years. b. On the last day of the current year, the company received a $470 utility bill for utilities used in December. The bil will be paid...
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