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Zygote Ltd. recorded warranty expense of $125,000 in 20X6, $35,000 in 20X7, and $75,000 in 20X8....
Parry Corp. acquired new equipment for $1,200,000 in 20X6. For accounting purposes, the equipment will be...
Parry Corp. acquired new equipment for $1,200,000 in 20X6. For accounting purposes, the equipment will be depreciated over five years, straight-line, with a full year’s depreciation in the first year. For income tax purposes, Parry can take CCA over the next three years of $120,000 in 20X6, $216,000 in 20X7, and $175,000 in 20X8. Parry’s income tax rate is 34%. Required: For each 31 December 20X6 through 20X8, determine: (Enter your answers in thousands.) 1. The tax basis for the...
Question 1 and 2 Tor 2021 from Fidelity's recoras follows: $ 68,000 92,000 Interest income on...
Question 1 and 2
Tor 2021 from Fidelity's recoras follows: $ 68,000 92,000 Interest income on municipal governmental bonds Depreciation claimed on the 2021 tax return in excess of depreciation on the income statement Carrying amount of depreciable assets in excess of their tax basis at year-end Warranty expense reported on the income statement Actual warranty expenditures in 2021 160,000 44,000 34,000 Fidelity's income tax rate is 25%. At January 1, 2021, Fidelity's records indicated balances of zero and $17,000...
The following information was extracted from the records of Bulb Ltd as at 30 June 2013:...
The following information was extracted from the records of
Bulb Ltd as at 30 June 2013:
The depreciation rates for accounting and taxation are 15% and
25% respectively. Deposits are taxable when received, and warranty
costs are deductible when paid. An allowance for doubtful debts of
$25 000 has been raised against accounts receivable for accounting
purposes, but such debts are deductible only when written off as
uncollectable.
Required
1. Calculate the temporary differences for Bulb Ltd as at 30...
question1 Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the...
question1 Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2020–2023 are as follows: Service Revenue Collections Pretax Accounting Income 2020 $ 700,000 $ 660,000 $ 226,000 2021 790,000 818,000 300,000 2022 750,000 742,000 268,000...
Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid to...
Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid to satisfy warranties on its product sales. For tax purposes, the expense is deducted when the warranty work is completed. At December 31, 2021, Lance has a warranty liability of $2 million and taxable income of $90 million. At December 31, 2020, Lance reported a deferred tax asset of $453,000 related to this difference in reporting warranties, its only temporary difference. The enacted tax rate...
Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid to...
Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid to satisfy warranties on its product sales. For tax purposes, the expense is deducted when the warranty work is completed. At December 31, 2021, Lance has a warranty liability of $2 million and taxable income of $85 million. At December 31, 2020, Lance reported a deferred tax asset of $475,000 related to this difference in reporting warranties, its only temporary difference. The enacted tax rate...
Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid to...
Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid to satisfy warranties on its product sales. For tax purposes, the expense is deducted when the cost is incurred. At December 31, 2018, Lance has a warranty liability of $2 million and taxable income of $75 million. At December 31, 2017, Lance reported a deferred tax asset of $835,000 related to this difference in reporting warranties, its only temporary difference. The enacted tax rate is...
I really just need the journal entries and how income tax payable and expense are calculated...
I really just need the journal entries and
how income tax payable and expense are calculated for the entries
each year. Thank you
Ayres Services acquired an asset for $116 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,...
Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid to...
Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid to satisfy warranties on its product sales. For tax purposes, the expense is deducted when the warranty work is completed. At December 31, 2021, Lance has a warranty liability of $2 million and taxable income of $80 million. At December 31, 2020, Lance reported a deferred tax asset of $437,000 related to this difference in reporting warranties, its only temporary difference. The enacted tax rate...
Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid to...
Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid to satisfy warranties on its product sales. For tax purposes, the expense is deducted when the cost is incurred. At December 31, 2013, Lance has a warranty liability of $2 million and taxable income of $40 million. At December 31, 2012, Lance reported a deferred tax asset of $737,500 related to this difference in reporting warranties, its only temporary difference. The enacted tax rate is...
Question 1 and 2
Tor 2021 from Fidelity's recoras follows: $ 68,000 92,000 Interest income on municipal governmental bonds Depreciation claimed on the 2021 tax return in excess of depreciation on the income statement Carrying amount of depreciable assets in excess of their tax basis at year-end Warranty expense reported on the income statement Actual warranty expenditures in 2021 160,000 44,000 34,000 Fidelity's income tax rate is 25%. At January 1, 2021, Fidelity's records indicated balances of zero and $17,000...
The following information was extracted from the records of
Bulb Ltd as at 30 June 2013:
The depreciation rates for accounting and taxation are 15% and
25% respectively. Deposits are taxable when received, and warranty
costs are deductible when paid. An allowance for doubtful debts of
$25 000 has been raised against accounts receivable for accounting
purposes, but such debts are deductible only when written off as
uncollectable.
Required
1. Calculate the temporary differences for Bulb Ltd as at 30...
I really just need the journal entries and
how income tax payable and expense are calculated for the entries
each year. Thank you
Ayres Services acquired an asset for $116 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,...
Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid to satisfy warranties on its product sales. For tax purposes, the expense is deducted when the warranty work is completed. At December 31, 2021, Lance has a warranty liability of $2 million and taxable income of $80 million. At December 31, 2020, Lance reported a deferred tax asset of $437,000 related to this difference in reporting warranties, its only temporary difference. The enacted tax rate...
Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid to satisfy warranties on its product sales. For tax purposes, the expense is deducted when the cost is incurred. At December 31, 2013, Lance has a warranty liability of $2 million and taxable income of $40 million. At December 31, 2012, Lance reported a deferred tax asset of $737,500 related to this difference in reporting warranties, its only temporary difference. The enacted tax rate is...
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