I really just need the journal entries and how income tax payable and expense are calculated for the entries each year. Thank you
journal entries towards the expense and deferred tax liability: | |||||
Date | Acc Titles | Debit $ | Credit $ | ||
31-Dec-18 | Tax expense | 168 | 420*0.4 | ||
Deferred Tax Liability | 2 | ||||
Tax payable | 166 | 415*0.4 | |||
(being tax expense and deferred tax liability created) | |||||
31-Dec-19 | Tax expense | 176 | 440*0.4 | ||
Deferred Tax Liability | 5.2 | ||||
Tax payable | 170.8 | 427*0.4 | |||
(being tax expense and deferred tax liability created) | |||||
31-Dec-20 | Tax expense | 182 | 455*0.4 | ||
Deferred Tax Liability | 2 | ||||
Tax payable | 184 | 460*0.4 | |||
(being tax expense and deferred tax liability adjustment made) | |||||
31-Dec-21 | Tax expense | 196 | 490*0.4 | ||
Deferred Tax Liability | 5.2 | ||||
Tax payable | 201.2 | 503*0.4 | |||
(being tax expense and deferred tax liability adjustment made) |
I really just need the journal entries and how income tax payable and expense are calculated...
Ayres Services acquired an asset for $88 million in 2018. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). For tax purposes the asset’s cost is depreciated by MACRS. The enacted tax rate is 40%. Amounts for pretax accounting income, depreciation, and taxable income in 2018, 2019, 2020, and 2021 are as follows: Ayres Services acquired an asset for $88 million in 2018. The asset is depreciated for financial reporting purposes...
Ayres Services acquired an asset for $100 million in 2018. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). For tax purposes the asset's cost is depreciated by MACRS. The enacted tax rate is 40%. Amounts for pretax accounting income, depreciation, and taxable income in 2018, 2019, 2020, and 2021 are as follows: Pretax accounting income Depreciation on the income statement Depreciation on the tax return Taxable income 2018 $ 380...
I don't understand why end 2019 is not $13 and why end of 2020 is not $5. Ayres Services acquired an asset for $106 million in 2018. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). For tax purposes the asset's cost is depreciated by MACRS. The enacted tax rate is 40%. Amounts for pretax accounting income, depreciation, and taxable income in 2018, 2019, 2020, and 2021 are as follows: Pretax...
Check my work Ayres Services acquired an asset for $104 million in 2018. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). For tax purposes the asset's cost is depreciated by MACRS. The enacted tax rate is 40%. Amounts for pretax accounting income, depreciation, and taxable income in 2018, 2019, 2020, and 2021 are as follows: points (8 04:07:01 Pretax accounting income Depreciation on the income statement Depreciation on the tax...
r 16 Homework Assignmenti Saved Help Check my wor Ayres Services acquired an asset for $106 million in 2018. The asset is depreciated for financial reporting purposes over four years on a straight-ine basis (no residual value). For tax purposes the asset's cost is depreciated by MACRS. The enacted tax rate is 40%. Amounts for pretax accounting income, depreciation, and taxable income in 2018, 2019, 2020, and 2021 are as follows: (s in millions) 2018 2019 2020 2021 s 395...
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Ayres Services acquired an asset for $168 million in 2021. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). For tax purposes the asset's cost is depreciated by MACRS. The enacted tax rate is 25%. Amounts for pretax accounting income, depreciation, and taxable income in 2021, 2022 2023, and 2024 are as follows: Pretax accounting income Depreciation on the income statement Depreciation on the tax return Taxable income 2021 $385 -...
Ayres Services acquired an asset for $232 million in 2021. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). For tax purposes the asset's cost is depreciated by MACRS. The enacted tax rate is 25%. Amounts for pretax accounting income, depreciation, and taxable income in 2021, 2022, 2023, and 2024 are as follows: Pretax accounting income Depreciation on the income statement Depreciation on the tax return Taxable income 2021 $425 58...
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Ayres Services acquired an asset for $232 million in 2021. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). For tax purposes the asset's cost is depreciated by MACRS. The enacted tax rate is 25%. Amounts for pretax accounting income, depreciation, and taxable income in 2021, 2022, 2023, and 2024 are as follows: Pretax accounting income Depreciation on the income statement Depreciation on the tax return Taxable income 2021 $425 58...