R.S. reported pre-tax accounting income in 2017, 2018, and 2019 of $80 million, plus an additional...
R.S. reported pre-tax accounting income in 2017, 2018, and 2019 of $80 million, plus an additional 2018 income of $50 million from installment sales of property. However, the installment sales income is reported on the tax return when collected, in 2018 ($20 million) and 2019 ($30 million). The enacted tax rate is 40% each yr. Prepare the table calculating the annual tax payable for each yr. Prepare the journal entry for each yr.
............................. ..................... Current yr ..................Future Taxable amounts ...........................Future Taxable Amount (total)
..................................................... 2017 .............................2018 ................2019
Pretax accounting income:
Temporary difference:
Installment income
Taxable income (tax return)
Enacted tax rate:
Tax payable currently:
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R.S. reported pre-tax accounting income in 2017, 2018, and 2019
of $80 million, plus an additional...
Sherrod, Inc., reported pretax accounting income of $76 million for 2018. The following information relates to...
Sherrod, Inc., reported pretax accounting income of $76 million for 2018. The following information relates to differences between pretax accounting income and taxable income: a. Income from installment sales of properties included in pretax accounting income in 2018 exceeded that reported for tax purposes by $3 million. The installment receivable account at year-end had a balance of $4 million (representing portions of 2017 and 2018 installment sales), expected to be collected equally in 2019 and 2020. b. Sherrod was assessed...
Sherrod, Inc., reported pretax accounting income of $88 million for 2018. The following information relates to...
Sherrod, Inc., reported pretax accounting income of $88 million for 2018. The following information relates to differences between pretax accounting income and taxable income: a. Income from installment sales of properties included in pretax accounting income in 2018 exceeded that reported for tax purposes by $7 million. The installment receivable account at year-end had a balance of $8 million (representing portions of 2017 and 2018 installment sales), expected to be collected equally in 2019 and 2020. b. Sherrod was assessed...
Sherrod, Inc., reported pretax accounting income of $82 million for 2018. The following information relate...
Sherrod, Inc., reported pretax accounting income of $82 million for 2018. The following information relates to differences between pretax accounting income and taxable income: . Income from installment sales of properties included in pretax accounting income in 2018 exceeded that reported for tax purposes by $7 million. The installment receivable account at year-end had a balance of $8 million (representing portions of 2017 and 2018 installment sales). expected to be collected equally in 2019 and 2020. b. Sherrod was assessed...
Arndt, Inc., reported the following for 2018 and 2019 ($ in millions): 2018 2019 Revenues $...
Arndt, Inc., reported the following for 2018 and 2019 ($ in millions): 2018 2019 Revenues $ 996 $ 1,031 Expenses 784 824 Pretax accounting income (income statement) $ 212 $ 207 Taxable income (tax return) $ 210 $ 230 Tax rate: 40% Expenses each year include $30 million from a two-year casualty insurance policy purchased in 2018 for $60 million. The cost is tax deductible in 2018. Expenses include $3 million insurance premiums each year for life insurance on key...
ONLY NEED REQUIRMENTS 1 AND 3 Sherrod, Inc., reported pretax accounting income of $78 million for...
ONLY NEED REQUIRMENTS 1 AND 3
Sherrod, Inc., reported pretax accounting income of $78 million
for 2018. The following information relates to differences between
pretax accounting income and taxable income:
Income from installment sales of properties included in pretax
accounting income in 2018 exceeded that reported for tax purposes
by $3 million. The installment receivable account at year-end had a
balance of $4 million (representing portions of 2017 and 2018
installment sales), expected to be collected equally in 2019 and...
WorldWest Inc. reported a pretax book operating loss of $120 million in 2020, including: - $50...
WorldWest Inc. reported a pretax book operating loss of $120 million in 2020, including: - $50 million from installment sales of property. The installment sales will be collected, and therefore, taxable, in 2021: - 10 million in expenses due to violations of the law that was paid in 2020. There were no other permanent or temporary differences. Taxable income in WorldWest’ two previous years of operations was $90 million in 2018 and $20 million in 2019. WorldWest elects the carryforward...
Information for Kent Corp. for the year 2018: Reconciliation of pretax accounting income and taxable income:...
Information for Kent Corp. for the year 2018: Reconciliation of pretax accounting income and taxable income: Pretax accounting income Permanent differences $180,30e (13,9e0) 166,400 (11,600) $154, 80e Temporary difference-depreciation Taxable income Cumulative future taxable amounts all from depreciation temporary differences: As of December 31, 2017 As of December 31, 2018 $11,600 $23,200 The enacted tax rate was 24% for 2017 and thereafter. What should be the balance in Kent's deferred tax liability account as of December 31, 2018?
Problem 3. Walsh Services computed pretax financial income of $220,000 for 2017 and 5288,000 for 2018....
Problem 3. Walsh Services computed pretax financial income of $220,000 for 2017 and 5288,000 for 2018. In preparing the income tax return for the year, the tax accountant determined the following differences between financial income and taxable income for 2017 and 2018: 2017 2018 (1) Nondeductible expenses $40,000 30,000 (2) Nontaxable revenues 14,000 22,000 (3) Uneamed rent of next two years received 20,000 (4) Installment sales in financial income but not in taxable income 70,000 The temporary Installment sales difference...
can someone please explain the illustration 16-1 and illustration 16-1A to me. I have to understand...
can someone please explain the illustration 16-1 and
illustration 16-1A to me. I have to understand this before the exam
tomorrow.
(I provided extra info if u need it)
TEMPORARY DIFFERENCES LO16-1 Describe the tybes of temporary differences that cause deferred tax liabilities and determine the amounts needed to record periodic income taxes. The differences in the rules for computing taxable income and those for financial reporting often cause amounts to be included in taxable income in a year...
Fores Construction Company reported a pretax operating loss of $260 million for financial reporting purposes in...
Fores Construction Company reported a pretax operating loss of $260 million for financial reporting purposes in 2018. Contributing to the loss were (a) a penalty of $15 million assessed by the Environmental Protection Agency for violation of a federal law and paid in 2018 and (b) an estimated loss of $20 million from accruing a loss contingency. The loss will be tax The enacted tax rate is 40%. There were no temporary differences at the beginning of the year and...
Sherrod, Inc., reported pretax accounting income of $88 million for 2018. The following information relates to differences between pretax accounting income and taxable income: a. Income from installment sales of properties included in pretax accounting income in 2018 exceeded that reported for tax purposes by $7 million. The installment receivable account at year-end had a balance of $8 million (representing portions of 2017 and 2018 installment sales), expected to be collected equally in 2019 and 2020. b. Sherrod was assessed...
Sherrod, Inc., reported pretax accounting income of $82 million for 2018. The following information relates to differences between pretax accounting income and taxable income: . Income from installment sales of properties included in pretax accounting income in 2018 exceeded that reported for tax purposes by $7 million. The installment receivable account at year-end had a balance of $8 million (representing portions of 2017 and 2018 installment sales). expected to be collected equally in 2019 and 2020. b. Sherrod was assessed...
ONLY NEED REQUIRMENTS 1 AND 3
Sherrod, Inc., reported pretax accounting income of $78 million
for 2018. The following information relates to differences between
pretax accounting income and taxable income:
Income from installment sales of properties included in pretax
accounting income in 2018 exceeded that reported for tax purposes
by $3 million. The installment receivable account at year-end had a
balance of $4 million (representing portions of 2017 and 2018
installment sales), expected to be collected equally in 2019 and...
Information for Kent Corp. for the year 2018: Reconciliation of pretax accounting income and taxable income: Pretax accounting income Permanent differences $180,30e (13,9e0) 166,400 (11,600) $154, 80e Temporary difference-depreciation Taxable income Cumulative future taxable amounts all from depreciation temporary differences: As of December 31, 2017 As of December 31, 2018 $11,600 $23,200 The enacted tax rate was 24% for 2017 and thereafter. What should be the balance in Kent's deferred tax liability account as of December 31, 2018?
Problem 3. Walsh Services computed pretax financial income of $220,000 for 2017 and 5288,000 for 2018. In preparing the income tax return for the year, the tax accountant determined the following differences between financial income and taxable income for 2017 and 2018: 2017 2018 (1) Nondeductible expenses $40,000 30,000 (2) Nontaxable revenues 14,000 22,000 (3) Uneamed rent of next two years received 20,000 (4) Installment sales in financial income but not in taxable income 70,000 The temporary Installment sales difference...
can someone please explain the illustration 16-1 and
illustration 16-1A to me. I have to understand this before the exam
tomorrow.
(I provided extra info if u need it)
TEMPORARY DIFFERENCES LO16-1 Describe the tybes of temporary differences that cause deferred tax liabilities and determine the amounts needed to record periodic income taxes. The differences in the rules for computing taxable income and those for financial reporting often cause amounts to be included in taxable income in a year...
Fores Construction Company reported a pretax operating loss of $260 million for financial reporting purposes in 2018. Contributing to the loss were (a) a penalty of $15 million assessed by the Environmental Protection Agency for violation of a federal law and paid in 2018 and (b) an estimated loss of $20 million from accruing a loss contingency. The loss will be tax The enacted tax rate is 40%. There were no temporary differences at the beginning of the year and...
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