Describe and explain four common temporary book tax differences.
Temporary book tax differences due 0109 6 points for outstanding job,5 points for good/adequate job Exhibit 16-4 lists 4 temporary book tax differences. These differences affected the income statement and tax return that you saw yesterday (exhibit 16-7 and 16-8). Cew Pro duction de (1) Books (Dr) CY (2)-(1) Difference (Favorable) Unfavorable TA Item (Dr) Cr SOOD Depreciation expense Gain on fixed asset disposition Bad debt expense Warranty expense Deferred compensation $(2.400,000 54.000 (165.000) (50,000) (800,000 SCATOLOO) 70,000 (95.000) (410.000)...
Woodward Corporation reported pretax book income of $1,432,500. Included in the computation were favorable temporary differences of $412,500, unfavorable temporary differences of $50,250, and favorable permanent differences of $146,000. Compute the company's current income tax expense or benefit. (Round your final answers to nearest whole dollar amount. Amounts to be deducted should be indicated by a minus sign.) Answer is not complete. Pretax book income Favorable temporary differences Unfavorable temporary differences Favorable permanent differences Taxable income Tax rate Current income...
Ann Corporation reported pretax book income of $1,270,000. Included in the computation were favorable temporary differences of $225,000, unfavorable temporary differences of $128,000, and favorable permanent differences of $140,000. Compute the company's book equivalent of taxable income. Use this number to compute the company's total income tax provision or benefit. Book equivalent of taxable income Total income tax provision or benefit
Corporation reported pretax book income of $400,000. Included in the computation were favorable temporary differences of $100,000, unfavorable temporary differences of $300,000, and unfavorable permanent differences of $200,000. Compute the company's book equivalent of taxable income. Use this number to compute the company's total income tax provision or benefit.
Shaw Corporation reported pretax book income of $1,260,000. Included in the computation were favorable temporary differences of $425,000, unfavorable temporary differences of $309,000, and favorable permanent differences of $193,000. Compute the company's deferred income tax expense or benefit. Deferred income tax expense
Shaw Corporation reported pretax book income of $1,920,000. Included in the computation were favorable temporary differences of $230,000, unfavorable temporary differences of $221,000, and favorable permanent differences of $115,000. Compute the company's deferred income tax expense or benefit. X Answer is complete but not entirely correct. Deferred income tax expense 3,060
Smith Company reported pretax book income of $407,000. Included in the computation were favorable temporary differences of $51,400, unfavorable temporary differences of $20,700, and favorable permanent differences of $40,700. Smith's deferred income tax expense or benefit would be: Multiple Choice Net deferred tax expense of $6,447. Net deferred tax benefit of $6,447. O o oo Net deferred tax expense of $15,141. Net deferred tax benefit of $15,141.
TF Qu. 02 A current year temporary book-tax difference... 19 A current year temporary book-tax difference is unfavorable if it causes taxable income to decrease relative to book income. points True or False Print True False
Book/Tax Differences Temporary Permanent Difference Reason Book 4,800 1,000 20 5,820 Sales Installment sales Interest Income Required: Determine which book/tax differences are temp or perm Calculate and enter Federal income tax expense Prepare journal entry to record tax expense Calculate Effective Tax Rate Prepare Deferred Tax Reconcilation for Financial stmt footnote Tax 4,800 300 5 5 5,105 (700) (15) (700) Payments not received municipal bond interest 2,350 2,350 Assumptions: DTA and DTL beginning balances = 0 All DTAs and DTLs...
Part 1: Temporary Differences Sharp Company has two temporary differences between its income tax expense and income taxes payable. The information is shown below. 2018 2019 2020 Pretax financial income $462,000 $500,500 $519,750 Excess depreciation expense on tax return (16,500) (22,000) (5,500) Excess warranty expense in financial income 11,000 5,500 4,400 Taxable income $456,000 $484,000 $518,650 The income tax rate for all years is 40%. Explain your reasoning. Use the blank area in the template following the journal entries to...