a) | ||
X - 40% = $331,000 taxes due for 2017 | ||
X = $331,000/40% | $ 827,500.00 | |
Taxable income for 2017 | $ 827,500.00 | |
b) | ||
Taxable income [from part (a)] | $ 827,500.00 | |
Excess depreciation | $ 122,000.00 | |
Municipal interest | $ 11,000.00 | |
Unearned rent | $ (42,600.00) | |
Pretax financial income for 2017 | $ 917,900.00 | |
c) | ||
General Journal | Debit | Credit |
2017 | ||
Income Tax Expense | $ 358,790.00 | |
Deferred Tax Asset ($42,600 X .35) | $ 14,910.00 | |
Income Tax Payable ($827,500 X .40) | $ 331,000.00 | |
Deferred Tax Liability ($122,000 X .35) | $ 42,700.00 | |
2018 | ||
Income Tax Expense | $ 322,980.00 | |
Deferred Tax Liability [($122,000 ÷ 4) X .35] | $ 10,675.00 | |
Income Tax Payable ($932,000 X .35) | $ 326,200.00 | |
Deferred Tax Asset [($42,6000 ÷ 2) X .35 | $ 7,455.00 | |
d) | ||
Ayayi corporation | ||
Income Statement | ||
For the year 2017 | ||
Income before income taxes | $ 917,900.00 | |
Income tax expense | ||
Current | $ 331,000.00 | |
Deferred ($42,700 – $14,910) | $ 27,790.00 | $ 358,790.00 |
Net income | $ 559,110.00 | |
Problem 19-1 The following information is available for Ayayai Corporation for 2017. 1. Depreciation reported on...
The following information is available for Ivanhoe Corporation for 2017. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $114,000. This difference will reverse in equal amounts of $28,500 over the years 2018- 2021. 2. Interest received on municipal bonds was $10,100. 3. Rent collected in advance on January 1, 2017, totaled $57,000 for a 3-year period. Of this amount, $38,000 was reported as unearned at December 31, 2017, for book purposes. 4. The...
Problem 19-1 (Part Level Submission) The following information is available for Skysong Corporation for 2017. 1. Depreciation reported on the tax return exceeded depreclation reported on the income statement by $122,000. This difference will reverse in equal amounts of $30,500 over the years 2018- 2021 2. Interest received on municipal bonds was $10,000. December 31, 2017, for book purposes. 3. Rent collected in advance on January 1, 2017, totaled $63,900 for a 3-year period. Of this amount, $42,600 was reported...
The following information is available for Ivanhoe Corporation for 2020. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $122,000. This difference will reverse in equal amounts of $30,500 over the years 2021–2024. 2. Interest received on municipal bonds was $11,000. 3. Rent collected in advance on January 1, 2020, totaled $63,900 for a 3-year period. Of this amount, $42,600 was reported as unearned at December 31, 2020, for book purposes. 4. The tax...
Exercise 19-3 Martinez Corporation began 2017 with a $97,700 balance in the Deferred Tax Liability account. At the end of 2017, the related cumulative temporary difference amounts to $324,800, and it will reverse evenly over the next 2 years. Pretax accounting income for 2017 is $563,900, the tax rate for all years is 40%, and taxable income for 2017 is $483,350. Compute income taxes payable for 2017. Income taxes payable g SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO...
Problem 19-1 (Part Level Submission) The following information is available for Whispering Corporation for 2017. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $124,000. This difference will reverse in equal amounts of $31,000 over the years 2018-2021. 2. Interest received on municipal bonds was $9,900 3. Rent collected in advance on January 1, 2017, totaled $55,500 for a 3-year period. Of this amount, $37,000 was reported as unearned at December 31, 2017, for...
Exercise 19-5 The following facts relate to Larkspur Corporation 1. Deferred tax liability, January 1, 2017, $42,000. 2. Deferred tax asset, January 1, 2017, $0. 3. Taxable income for 2017, $99,750 4. Pretax financial income for 2017, $210,000. 5. Cumulative temporary difference at December 31, 2017, giving rise to future taxable amounts, $252,000. 6. Cumulative temporary difference at December 31, 2017, giving rise to future deductible amounts, $36,750. 7. Tax rate for all years, 40 % . 8. The company...
The following information is available for Skysong Corporation for 2017. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $122,000. This difference will reverse in equal amounts of $30,500 over the years 2018–2021. 2. Interest received on municipal bonds was $10,000. 3. Rent collected in advance on January 1, 2017, totaled $63,900 for a 3-year period. Of this amount, $42,600 was reported as unearned at December 31, 2017, for book purposes. 4. The tax...
Carla Corporation began 2017 with a $96,900 balance in the Deferred Tax Liability account. At the end of 2017, the related cumulative temporary difference amounts to $381,400, and it will reverse evenly over the next 2 years. Pretax accounting income for 2017 is $493,500, the tax rate for all years is 40%, and taxable income for 2017 is $354,350. Compute income taxes payable for 2017. Income taxes payable g SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare...
Exercise 19-1 Headland Corporation has one temporary difference at the end of 2017 that will reverse and cause taxable amounts of $53,900 in 2018, $58,600 in 2019, and $63,900 in 2020. Headland's pretax financial income for 2017 is $304,500, and the tax rate is 40% for all years. There are no deferred taxes at the beginning of 2017 Compute taxable income and income taxes payable for 2017. Taxable income Income taxes payable $ Prepare the journal entry to record income...
Problem 19-01 The following information is available for Remmers Corporation for 2020. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $120,000. This difference will reverse in equal amounts of $30,000 over the years 2021–2024. 2. Interest received on municipal bonds was $10,000. 3. Rent collected in advance on January 1, 2020, totaled $60,000 for a 3-year period. Of this amount, $40,000 was reported as unearned at December 31, 2020, for book purposes. 4....