Review the following information for Acco Brands relating to the year 2018.
1. Income taxes of $270,000 are due for the 2018 tax year. The
tax rates are 30% for 2018 and 40% for 2019.
2. Depreciation reported on the tax return exceeded depreciation
reported on the income statement by $75,000. This difference will
reverse in equal amounts of $25,000 over the years 2019 thru
2021.
3. Interest received on municipal bonds was $24,000
4. Advanced rent collected on January 1, 2018 totaled $45,000 for a
3 year period. Of this amount, $30,000 was reported unearned at
December 31, 2018, for book purposes.
5. No deferred taxes existed at the beginning of 2018.
A. Compute taxable income for 2018.
B. Compute pretax financial income for 2018.
C. Prepare journal entries to record income tax expense, deferred
income taxes, and income taxes payable for 2018 and 2019. Assume
taxable income for 2019 was $760,000.
D. Prepare the income tax expense section of the income statement
for 2018, beginning with “Income before income taxes.”
Review the following information for Acco Brands relating to the year 2018. 1. Income taxes of $270,000 are due for the 2018 tax year. The tax rates are 30% for 2018 and 40% for 2019. 2. Depreciation...
(Income Taxes) The following information is available for Potter Corporation for 2017. 3. a. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $75,000. This difference will reverse in equal amounts of $25,000 over the years 2018-2020. b. Interest received on municipal bonds was $24,000. c. Rent collected in advance on January 1, 2017, totaled $45,000 for a 3-year period. Of this amount, $30,000 was reported as unearned at December 31, 2017, for book purposes...
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...
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...
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...
Problem 19-1 The following information is available for Ayayai 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 $11,000. 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....
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....
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...
Harrison Corporation reported pretax book income of $600,000. Tax depreciation exceeded book depreciation by $400,000. In addition, the company received $300,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $50,000. Compute the company's deferred income tax expense or benefit. Deferred income tax expense
Harrison Corporation reported pretax book income of $600,000. Tax depreciation exceeded book depreciation by $400,000. In addition, the company received $300,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $50,000. Compute the company's deferred income tax expense or benefit. Deferred income tax expense $ 0
Harrison Corporation reported pretax book income of $732,500. Tax depreciation exceeded book depreciation by $630,000. In addition, the company received $232,000 of tax exempt municipal bond interest. The company's prior year tax return showed taxable income of $49,000. Compute the company's deferred income tax expense or benefit. Deferred Income tax expense