Pixar Company reported operating income/loss before income tax in its first three years of operations as follows; 2013 - $100,000 2014 - ($200,00) 2015 - $400,00 Pixar had no permanent or temporary differecnes between book income and taxable income in these years. Pixar elected to carry the 2014 loss back to the extent possible. Assume a 40% tax rate for all therse years. What amount should Pixar report as current taxes payable on December 31, 2015 (the year after the loss)?

Pixar Company reported operating income/loss before income tax in its first three years of operations as follows; 2013 - $100,000 2014 - ($200,00) 2015 - $400,00 Pixar had no permanent or temporary differecnes between book income and taxable income in these years. Pixar elected to carry the 2014 loss back to the extent possible. Assume a 40% tax rate for all therse years. What amount should Pixar report as current taxes payable on December 31, 2015 (the year after the loss)?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 9MC: Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and...

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Pixar Company reported operating income/loss before income tax in its first three years of operations as follows; 2013 - $100,000 2014 - ($200,00) 2015 - $400,00 Pixar had no permanent or temporary differecnes between book income and taxable income in these years. Pixar elected to carry the 2014 loss back to the extent possible. Assume a 40% tax rate for all therse years. Required: 1. What amount of shoud Pixar report as a tax benefit on its 2014 income statement?
Pixar Company reported operating income/loss before income tax in its first three years of operations as follows; 2013 - $100,000 2014 - ($200,00) 2015 - $400,00 Pixar had no permanent or temporary differecnes between book income and taxable income in these years. Pixar elected to carry the 2014 loss back to the extent possible. Assume a 40% tax rate for all therse years. Required: What amount of deferred tax asset should Pixar report on its December 31, 2014 balance sheet?
Wheaton Inc. reported the following results for its first three years of operations: 2019 Income (before income taxes) $ 40,000 2020 Loss (before income taxes) (300,000) 2021 Income (before income taxes) 400,000 There were no permanent or reversible differences during these three years. Assume an income tax rate of 30% for 2019 and 2020, and 40% for 2021, and that any tax loss carryforward is more likely than not to be realized. If Wheaton elects to use the carryback provisions, what after tax net income (loss) is reported for 2020? Select one: a. $(300,000). b. $(196,000). c. $(184,000). d. $0. e. none of the above.
Conlin Corporation had the following tax information. Year Taxable Income Tax Rate Taxes Paid 2015 $300,000 35% $105,000 2016 325,000 30 97,500 2017 400,000 30 120,000 In 2018, Conlin suffered a net operating loss of $480,000, which it elected to carry back. The 2018 enacted tax rate is 29%. Prepare Conlin’s entry to record the effect of the loss carryback.
NSync Manufacturing has a deferred tax asset account with a balance of P300,000 at the end of 2015 due to a single cumulative temporary difference of P 750,00. At the end of 2016, this same temporary difference has increased to a cumulative amount of P1,000,000. Taxable income for 2016 is P1,700,000. The tax rate is 40% for 2016, but enacted tax rates for all future years are 35%. Assuming it’s probable that 70% of the deferred tax asset will be realized, what amount will be reported on NSync manufacturing statement of financial position for the deferred tax asset at December 31, 2016
Assume that Peridot operates in an industry for which NOL carryback is allowed. In its first four years of operations Peridot reported the following operating income (loss) amounts: 2018 $ 176,000 2019 126,000 2020 (438,000 ) 2021 476,000 There were no other items affecting deferred income taxes in any year. In 2020, Peridot elected to carry back its operating loss. The enacted income tax rate was 25%. In its 2021 income statement, what amount should Peridot report as income tax expense?
Bronson Industries reported a deferred tax liability of $8 million for the year ended December 31, 2015, related to a temporary difference of $20 million. The tax rate was 40%. The temporary difference is expected to reverse in 2017 at which time the deferred tax liability will become payable. There are no other temporary differences in 2015–2017. Assume a new tax law is enacted in 2016 that causes the tax rate to change from 40% to 30% beginning in 2017. (The rate remains 40% for 2016 taxes.) Taxable income in 2016 is $30 million. Required: Determine the effect of the change and prepare the appropriate journal entry to record Bronson’s income tax expense in 2016. What adjustment, if any, is needed to revise retained earnings as a result of the change?
XYZ Company reported the following pretax income (loss) and related tax rates during the years 2016-2021. Year Pretax Income (loss) Tax rate 2016 $75,000 30% 2017 150,000 30% 2018 240,000 40% 2019 (540,000) 48% 2020 210,000 40% 2021 300,000 42% Prepare the journal entries for the years 2019 and 2020 to record income taxes and the tax effects of the loss. Assume that XYZ elects the carryback provision where possible and it is probable that it will realize benefits of any loss carryforward. Prepare the portion of the income statement that presents your answer in part (a) for the year ended 2019.
The whole question is as follows: At the beginning of 2016, Norris Company had a deferred tax liability of $6,600, because of the use of MACRS depreciation for income tax purposes and units-of-production depreciation for financial reporting. The income tax rate is 30% for 2015 and 2016, but in 2015 Congress enacted a 39% tax rate for 2017 and future years. Norris’s accounting records show the following pretax items of financial income for 2016: income from continuing operations, $120,300 (revenues of $351,500 and expenses of $231,200); gain on disposal of Division F, $24,000; loss from operations of discontinued Division F, $11,500; and prior period adjustment, $14,100, due to an error that understated revenue in 2015. All of these items are taxable; however, financial depreciation for 2016 on assets related to continuing operations exceeds tax depreciation by $4,600. Norris had a retained earnings balance of $161,300 on January 1, 2016, and declared and paid cash dividends of $32,800…
At the beginning of 2016, Norris Company had a deferred tax liability of $6,400, because of the use of MACRS depreciation for income tax purposes and units-of-production depreciation for financial reporting. The income tax rate is 30% for 2015 and 2016, but in 2015 Congress enacted a 37% tax rate for 2017 and future years. Norris's accounting records show the following pretax items of financial income for 2016: income from continuing operations, $119,300 (revenues of $351,000 and expenses of $231,700); gain on disposal of Division F, S21,300; loss from operations of discontinued Division F, $8,700; and prior period adjustment, $14,800, due to an error that understated revenue in 2015. All of these items are taxable; however, financial depreciation for 2016 on assets related to continuing operations exceeds tax depreciation by $5,400. Norris had a retained earnings balance of $163,000 on January 1, 2016, and declared and paid cash dividends of $30,300 during 2016. Required: 1. Prepare…
At the end of 2015, Payne Industries had a deferred tax asset account with a balance of $30 million attributable to a temporary book–tax difference of $75 million in a liability for estimated expenses. At the end of 2016, the temporary difference is $70 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2016 is $180 million and the tax rate is 40%. Required: 1. Prepare the journal entry(s) to record Payne’s income taxes for 2016, assuming it is more likely than not that the deferred tax asset will be realized. 2. Prepare the journal entry(s) to record Payne’s income taxes for 2016, assuming it is more likely than not that one-fourth of the deferred tax asset will ultimately be realized.
On December 31, 2013, Thorn Company reported the tax effects of temporary differences as follows: Deferred Tax Asset (Liability) Related Asset Classification Accelerated tax Depreciation (75,000) Noncurrent Additional cost in inventory for tax purposes 25,000 Current The entity anticipated that P10,000 of the deferred tax liability will reverse in 2015. On december 31, 2013, what amount should be reported as Noncurrent Deferred Tax Liability? A. 40,000 B. 50,000 C. 65,000 D. 75,000