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Bramble Corporation purchased equipment very late in 2017. Based on generous capital cost allowance rates provided...
Pronghorn Corporation purchased equipment very late in 2020. Based on generous capital cost allowance rates provided in the Income Tax Act, Pronghorn Corporation claimed CCA on its 2020 tax return but did not record any depreciation because the equipment was being tested. This temporary difference will reverse and cause taxable amounts of $29,800 in 2021, $31,500 in 2022, and $49,400 in 2023. Pronghorn’s accounting income for 2020 is $237,400 and $207,400 in each of 2021 and 2022, and the tax...
PRINTER CALCULATOR FULL SCREEN Question 12 Pronghorn Company reports pretax financial income of $68,400 for 2017. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $17,000. 2. Rent collected on the tax return is greater than rent recognized on the income statement by $21,000. 3. Fines for pollution appear as an expense of $10,300 on the income statement Pronghorn's tax rate...
Flint Corporation has one temporary difference at the end of 2017 that will reverse and cause taxable amounts of $57,500 in 2018, $62,100 in 2019, and $66,600 in 2020. Flint’s pretax financial income for 2017 is $314,600, and the tax rate is 40% for all years. There are no deferred taxes at the beginning of 2017. (A) Compute Taxable Income and Income Taxes Payable for 2017. Taxable income $__________ Income Taxes Payable $________ (B) Prepare the journal entry to record...
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...
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...
Tamarisk Corporation began 2017 with a $89,100 balance in the Deferred Tax Liability account. At the end of 2017, the related cumulative temporary difference amounts to $362,000, and it will reverse evenly over the next 2 years. Pretax accounting income for 2017 is $572,900, the tax rate for all years is 40%, and taxable income for 2017 is $433,650. (A) Compute income Taxes Payable for 2017. Income Taxes Payable $_________________ Prepare the journal entry to record income tax expense, deferred...
Exercise 19-5 The following facts relate to Pearl Corporation. 1. Deferred tax liability, January 1, 2017, $45,600. 2. Deferred tax asset, January 1, 2017, $0. 3. Taxable income for 2017, $108,300. 4. Pretax financial income for 2017, $228,000. 5. Cumulative temporary difference at December 31, 2017, giving rise to future taxable amounts, $273,600. 6. Cumulative temporary difference at December 31, 2017, giving rise to future deductible amounts, $39,900. 7. Tax rate for all years, 40%. 8. The company is expected...
Question 8 Skysong Corporation has pretax financial income (or loss) equal to taxable income (or loss) from 2009 through 2017 as follows: Income (Loss) Tax Rate 2009 $34,800 30 % 2010 48,000 30 % 2011 20,400 35% 57,600 50% 2013 (180,000) 40 % 2014 100,000 40 % 2015 36,000 2016 126,000 40 2017 (72,000) 2012 40 Pretax financial income (loss) and taxable income (loss) were the same for all years since Skysong has been in business. Assume the carryback provision...
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...
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...