In its 20X1 income statement, what amount should Kent report as the deferred portion of income tax expense?
Q: A temporary account used to record the cost of goods bought for resale during a periodis called
A: Notes: All Income statement (P & L) accounts are considered as temporary account.
Q: A company purchased inventory for $700 per unit. The company later sold one unit of the inventory…
A: A company purchased inventory for $700 per unit. The company later sold one unit of the inventory…
Q: Which of the following is an “above-the-line” deduction? (A) State and local taxes (B) Mortgage…
A: Above-the-line deductions refer to the amount subtracted from the annual gross income as per IRS…
Q: Beth Company purchased two identical inventory items. The first purchase cost $5 and the second cost…
A: INVENTORY VALUATION Inventory Valuation is a Method of Calculation of Value of Inventory at the…
Q: taxes
A: Taxes are compulsory obligations on those who earn over and above the specified limit. All entities…
Q: 2. An investor shall discontinue the use of the equity method from the date? The investor ceases to…
A: 2. ANSWER:- a. only i i. The investor ceases to have significant influence over an associate.…
Q: Factory Overhead Cost Variances Thomas Textiles Corporation began November with a budget for 35,000…
A: Factory overhead refers to the cost that is incurred in operating the business activities of the…
Q: The prudence concept is applied here in the sense that revenue should not be anticipated, and…
A: Accrual Basis of Accounting: Accrual Basis of accounting refers to the accounting, where the…
Q: Digital Enterprises is a merchandising company. All inventory sales and purchases are made on…
A: Total Credit sales = Accounts receivable balance at end + Cash collections - Opening accounts…
Q: Beiber Boxers contribution income statement utilizing variable costing for 2020 variable costing…
A: As per the absorption costing method, the product cost includes fixed and variable manufacturing…
Q: The question doesnt speak to motor cars. Where did this info come from for A-Town?
A: Adjusting journal entries are those journal entries which are prepared at the year end to match the…
Q: The vice president of operations of Scott Hall and Associates is evaluating the performance of two…
A: The income statement is prepared to find the net income or loss incurred during the period. By…
Q: Troy Engines Ltd manufactures a variety of engines for use in heavy equipment. The company has…
A: Make or buy decisions: - It is a task of selecting best alternative between the production or buying…
Q: Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the…
A: Calculation of Contribution on Regular Sales Particulars Amount Selling Price (Per Unit)…
Q: Which of the following will tend to INCREASE the benefit of the interest tax shield given a…
A: Progressive tax structure is the tax structure under which the groups with a higher income are…
Q: Which of the following statements are true? Statement I. In a production budget, if the number of…
A: Budgeted merchandise purchases = Budgeted sales + Desired ending inventory - Beginning inventory…
Q: K. Daniels started Daniels Services, a firm providing art services for advertisers, on June 1. The…
A: As per accounting equation, the total assets is always equal to total liabilities and total equity.…
Q: Edward Food Processing Company is a wholesale distributor of biscuits in Holborn. The Company has…
A: It has been provided: Selling price per unit = 4.00 Cost of Biscuits = 2.00 Profit on sale = 0.40…
Q: Belvidere Pharmaceuticals F -Town Division Trial Balance as of December 31, 2021 A/C Name Trial…
A: Financial Statement - Financial Statement includes Income Statement, Statement of Owner's Equity and…
Q: Describe how the nature of evidence used to evaluate the control environment differs from the nature…
A: The control environment is the set of standards, procedures, and processes that help ensure the…
Q: P4-1A Calculate Equivalent Units, Unit Costs, and Transferred Costs--Weighted Average Method…
A: Process costing refers to the type of costing system under which cost is identified for the products…
Q: Shown below is information from the financial reports of Knauss Supermarkets for the past few years.…
A: Trend analysis is used to make future predictions based on current trends or past data from two or…
Q: Here are data regarding Flamingo Company's budget for the month of January: Break-even point in…
A: Margin of safety: Margin of safety is the point after which profit will happen in multiple of…
Q: What are examples of direct cost related to juvenile recidivism?
A: Some examples of direct costs related to juvenile recidivism include the costs of: -Hiring…
Q: A company had credit sales of $5.0 million for the year and estimates their bad debts to be 1% of…
A: Note: Under Direct write off method, bad debts expense are recorded when company is sure that amount…
Q: Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data…
A: The question is related to the traditional costing and Activity Based Costing. Under traditional…
Q: Aa.15. Josh Company has borrowed $4,000,000 from its neighborhood bank for business expansion.…
A: The notes payable indicate long-term borrowing. The company obtains funds from banks and other…
Q: Tile Corporation sells 600 units at a selling price of $800 per unit. Tile's variable expense…
A: Degree of operating leverage (DOL): DOL reflects an organization's variable and fixed cost…
Q: De Soto Inc. produces tablet computers. The company uses Thin Film Crystal (TFC) LCD displays for…
A: Direct material variance is the difference between the estimated costs of material and the actual…
Q: Sales volume Sales price Unit VC Input price for DL Input quantity per unit for DL Budgeted 110…
A: Sales volume variance = (Actual volume - Budgeted volume) x Budgeted price
Q: One of the companies set a capital structure on December 31, 2017 and it was as follows: Ordinary…
A: Share Capital - By issuing common or preferred stock, a firm can raise share capital. With…
Q: Enter problem statement, appropriate Input type, and other instructions here. ABC Corporation owns…
A: When an investment asset is sold, the sale results in the realization of a capital gain, which is…
Q: P Company owns 90% of the outstanding common stock of S Company. On January 1, 2020, S Company sold…
A: A journal is a detailed account that records all the financial transactions of a business, to be…
Q: Describe strategies Fund Managers would employed to best manage PRIVATE equity finance within a…
A: The first step is to create a clear and concise business plan that outlines the goals and objectives…
Q: Under prospect theory, the shape of the utility function implies that investors are
A: Under prospect theory, the shape of the utility function implies that investors are: (A) Always risk…
Q: Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans…
A: Break even point (Units)= Fixed cost / Contribution margin per unit Break even point ($)= Fixed…
Q: A firm has decided to switch from variables? Assume an inflationary environment. Net profit will: OA…
A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method. FIFO…
Q: Barrel Enterprises has two divisions, East Division and West Division. In Year 1, the West Division…
A: Profit Margin :— It is calculated by dividing net operating income by net sales. Return on…
Q: A/C Name Belvidere Pharmaceuticals D-Town Division Trial Balance as of December 31, 2021 Cash…
A: Explanation - There are statements of the organization which show different accounting financials.…
Q: Wyatt Company acquired 30% interest in the voting stock of Staples Inc. for $650,000. During the…
A: ANSWER:- $ 54,000 is correct answer $54,000 amount will wyatt company report on its income statement…
Q: (Related to Checkpoint 9.3) (Bond valuation) Pybus, Inc. is considering issuing bonds that will…
A: Time value of money :— According to this concept, value of money in present day is greater than the…
Q: What sh
A: Answer :Allowance for Doubtful accounts at 12/31/2018 : 1/1/2018 Allowance for doubtful debts…
Q: Retailer X buys a product at $1.75 per unit and plans to sell the item for $3.29 per unit.…
A: MARGIN IN COST BASIS Margin is the selling price of a product minus cost of goods. Margin on Cost…
Q: The vice president of operations of Recycling Industries is evaluating the performance of two…
A: SOLUTION :- 1. CONDENSED DIVISIONAL INCOME…
Q: Financial Assets representing a contractual right to receive cash in the future. Financial Liability…
A: Financial asset, is an asset that gives contractual right to an entity, to receive cash or another…
Q: When an MFI transforms, it must take a more sophisticated approach to pricing its products and…
A: As an MFI, we consider cost, competition and profitability targets when we are pricing our products.…
Q: th excess supply? (select ALL correct a reduce prices increase advertising use all available…
A: Supply is very important for exporting product which is useful to others
Q: 1. What would be the depreciation amount for the car sold on Sep 1 ?
A: Depreciation: It is the reduction in value of assets over it's useful life. Depreciation on assets…
Q: account relating to the business as at December 31, 201 $ from instrument contracts come enses: s &…
A: A schedule of tax liability refers to the form of a document that reflects compiled list of all the…
Q: The Saint Lucia Blood Bank, a private charity partly supported by government grants, is located on…
A: The flexible budget performance report is prepared to estimate the difference between actual and…
Kent Inc.’s reconciliation between financial statement and taxable income for 20X1 follows:
Pre-tax financial income | $ | 150,000 | |
Permanent difference | (12,000 | ) | |
138,000 | |||
Temporary difference— |
(9,000 | ) | |
Taxable income | $ | 129,000 | |
Additional Information:
At December 31, | ||||||
20X0 | 20X1 | |||||
Cumulative temporary difference (future taxable amounts) |
$ | 11,000 | $ | 20,000 | ||
The enacted tax rate is 21%.
Required:
-
In its 20X1 income statement, what amount should Kent report as the deferred portion of income tax expense?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Barth James Inc. has the following deferred tax assets and liabilities: 12,000 noncurrent deferred tax asset, and 10,500 noncurrent deferred tax liability. Show how Barth James would report these deferred tax assets and liabilities on its balance sheet.10. Sheridan Corp. prepared the following reconciliation of income per books with income per tax return for the year ended December 31, 2021: Book income before income taxes $ 2630000 Add temporary difference Construction contract revenue which will reverse in 2022 233000 Deduct temporary difference Depreciation expense which will reverse in equal amounts in each of the next four years ( 943200) Taxable income $ 1919800 Sheridan's effective income tax rate is 25% for 2021. What amount should Sheridanreport in its 2021 income statement as the current provision for income taxes? A) $ 479950 B) $ 657500 C) $ 715750 D) $ 58250Information for Kent Corp. for the year 2021: Reconciliation of pretax accounting income and taxable income: Pretax accounting income $ 174,000 Permanent differences (15,200 ) 158,800 Temporary difference-depreciation (12,900 ) Taxable income $ 145,900 Cumulative future taxable amounts all from depreciation temporary differences: As of December 31, 2020 $ 12,700 As of December 31, 2021 $ 25,600 The enacted tax rate was 30% for 2020 and thereafter. What would Kent's income tax expense be in the year 2021?
- Acer, Inc. reported a taxable income of P8,000,000 in its Form 1702 for its first year of operations, calendar year 2020. Below are the differences between taxable and financial income:· Excess tax depreciation over accounting depreciation: P500,000· Revenue collected for tax in excess of accounting revenue: P2,000,000· Tax penalties expensed in the income statement: P200,000Income tax rate is 30%. What is the NET DEFERRED TAX EXPENSE for 2020? a. 450,000 benefit b. 450,000 expense c. 510,000 benefit d. 510,000 expenseA reconciliation of Kent Corp.'s 2021 pretax accounting income and taxable income is below: Pretax accounting income $180,000 Permanent differences (15,000) Temporary difference: depreciation (12,000) Taxable income $153,000 Cumulative future taxable amounts, all from temporary differences in depreciation are below: As of December 31, 2020 As of December 31, 2021 $13,000 $25,000 The enacted tax rate is 25% for all years. What income tax expense should Kent report for 2021? Multiple Choice $41,250 $45,000 $38,250 $35,2501. Pine Corporation’s books showed pretax income of P600,000 for the year ended December 31, 20x1. In the computation of federal income taxes, the following data were considered: Gain on involuntary conversion (expropriation) P350,000 Depreciation deducted for tax purposes in excess of depreciation deducted for book purposes 50,000 Estimated tax payments during 20x1 70,000 Income tax rate 30% What amount should Pine report as its current income tax liability on its December 31, 20x1, balance sheet?
- At the end of the year, a deductible temporary difference of $40 million has been recognised due to the difference between the carrying amount of a liability account for estimated expenses and its tax base. Taxable income is $50 million. No temporary differences existed at the beginning of the year, and the tax rate is 35%. Required: a. Prepare the journal entry(s) to record income taxes during the period. b.How much will income tax expense be shown in the income statement? c.At the end of the year, a deductible temporary difference of $40 million has been recognised due to the difference between the carrying amount of a liability account for estimated expenses and its tax base. Taxable income is $50 million. No temporary differences existed at the beginning of the year, and the tax rate is 35%. Required: a. Prepare the journal entry(s) to record income taxes during the period. b.How much will income tax expense be shown in the income statement? c. What will be the balance sheet disclosure during the period regarding taxes?Information for Kent Corp. for the year 2021: Reconcillation of pretax accounting income and taxable income: Pretax accounting income $180,000 (15,000) 165,000 (12,000) Permanent differences Temporary difference-depreciation Taxable income $153,000 Cumulative future taxable amounts all from depreciation temporary differences: As of December 31, 2020 $13,000 $25,000 As of December 31, 2021 The enacted tax rate vwas 25% for 2020 and thereafter. What should be the balance in Kent's deferred tax liability account as of December 31, 2021? Multiple Choice Prev 8 of 39 Next > Question no....pages ....pdf 7 Question no....pages MacBook Air
- Beaver Dam Inc. (BDI) listed the following items to prepare a reconciliation between book and taxable income. GAAP net income before tax $700,000 Meal expense 100,000 GAAP depreciation expense 110,000 Depreciation expense for tax purposes 120,000 a. Compute BDI’s tax expense for financial statement purposes. b. Compute BDI’s tax payable to the IRS. c. Compute the net increase in BDI’s deferred tax assets or deferred tax liabilities for the year. d. Prepare the journal entry to record taxes for the year.Vaughn Company reported the following pretax financial income (loss) for the years 2018-2022. 2018 $259,200 378,000 129,600 (615,600 ) 194,400 2019 2020 2021 2022 Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 34% for 2018 and 2019, and 20% for 2020-2022. Assume the carryback provision is used first for net operating losses.On December 31, for GAAP purposes, Clubs Inc. reported a balance of $56,000 in Prepaid Maintenance Expense for services to be received over the following year. For tax purposes, however, prepaid costs are deducted when paid. Taxable income is $184,000 and the tax rate is 25%. Assume no other temporary differences or any beginning balances in deferred tax accounts. Required a. Record the income tax journal entry on December 31. •Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). Date Account Name Dec. 31 Income Tax Expense N/A Income Tax Payable Deferred Tax Liability To record income tax expense Dr. Cr. 60,000 0 0 0 0 46,000 ▼ 0 14,000 b. Prepare the income tax section of the income statement for the year and provide the disclosure of current and deferred tax expense. •Note: Do not use negative signs with your answers. Partial Income Statement For the year ended December 31 Income…