Youngman Corporation has temporary differences at December 31, 2017, that result in the following deferred taxes. Deferred tax liability related to depreciation difference $38,000 Deferred tax asset related to warranty liability 62,000 Deferred tax liability related to revenue recognition 96,000 Deferred tax asset related to litigation accruals 27,000 Indicate how these balances would be presented in Youngman’s December 31, 2017, balance sheet.

Youngman Corporation has temporary differences at December 31, 2017, that result in the following deferred taxes. Deferred tax liability related to depreciation difference $38,000 Deferred tax asset related to warranty liability 62,000 Deferred tax liability related to revenue recognition 96,000 Deferred tax asset related to litigation accruals 27,000 Indicate how these balances would be presented in Youngman’s December 31, 2017, balance sheet.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter3: Taxes On The Financial Statements

Section: Chapter Questions

Problem 3BCRQ

See similar textbooks

Similar questions

Sheridan Company reported the following results for the year ended December 31, 2020, its first year of operations: Income (per books before income taxes) $3343000 Taxable income 4466000 The disparity between book income and taxable income is attributable to a temporary difference, which will reverse in 2021. What should Sheridan record as a net deferred tax asset or liability for the year ended December 31, 2020, assuming that the enacted tax rates in effect are 35% in 2020 and 30% in 2021? O $393050 deferred tax liability $336900 deferred tax liability $393050 deferred tax asset $336900 deferred tax asset
Youngman Corporation has temporary differences at December 31, 2017, that result in the following deferred taxes. Deferred tax asset $24,000 Deferred tax liability 69,000 Indicate how these balances would be presented in Youngman’s December 31, 2017, statement of financial position.
Cris Company reported the following results for the year ended December 31, 2020, its first year of operations:· Income (per books before income taxes)- P750,000· Taxable income-P1,200,000The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2021. What should Cris record as a net deferred tax asset or liability for the year ended December 31, 2020, assuming that the enacted tax rates in effect are 40% in 2020 and 35% in 2021?
IT Company reported the following results for the year ended December 31, 2020, its first year of operations: Income (per books before income taxes)- P750,000 Taxable income-P1,200,000 The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2021. What should IT record as a net deferred tax asset or liability for the year ended December 31, 2020, assuming that the enacted tax rates in effect are 40% in 2020 and 35% in 2021? A.P157,500 deferred tax liabilityB.P157,500 deferred tax assetC.P180,000 deferred tax liabilityD.P180,000 deferred tax asset
(Two Temporary Differences, One Rate, Beginning Deferred Taxes) The following facts relate to Krung Thep Corporation.1. Deferred tax liability, January 1, 2017, $40,000.2. Deferred tax asset, January 1, 2017, $0.3. Taxable income for 2017, $95,000.4. Pretax financial income for 2017, $200,000.5. Cumulative temporary difference at December 31, 2017, giving rise to future taxable amounts, $240,000.6. Cumulative temporary difference at December 31, 2017, giving rise to future deductible amounts, $35,000.7. Tax rate for all years, 40%.8. The company is expected to operate profitably in the future.Instructions(a) Compute income taxes payable for 2017.(b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017.(c) Prepare the income tax expense section of the income statement for 2017, beginning with the line “Income before income taxes.”
CASE IV JKL Company provided the following information to its accountant to determine the tax due for the current year 2021 as well as any tax consequences of items that cause difference between financial and taxable income: Accounting income before tax, P15,600,000 Accounting Depreciation, P500,000 Litigation loss accrued during the year, P80,000, taxable only when paid. Tax depreciation, P1,500,000 Accrued liability on employees’ health care P250,000 Development cost of computer software, P3,000,000. The computer software is expected to be useful for 3 years starting this year. Nondeductible expenses, P1,250,000 Nontaxable revenue, P2,100,000 Revenue subject to 20% tax rate, P750,000 Bad debts expense for the period, P75,000 Bad debts written off during the year, P45,000 Gross income of installment sales of P450,000 (taxable when collected expected on 2022) The tax rate applicable for this year onwards is 30%. QUESTION: 1. Compute the taxable income
CASE IV JKL Company provided the following information to its accountant to determine the tax due for the current year 2021 as well as any tax consequences of items that cause difference between financial and taxable income: Accounting income before tax, P15,600,000 Accounting Depreciation, P500,000 Litigation loss accrued during the year, P80,000, taxable only when paid. Tax depreciation, P1,500,000 Accrued liability on employees’ health care P250,000 Development cost of computer software, P3,000,000. The computer software is expected to be useful for 3 years starting this year. Nondeductible expenses, P1,250,000 Nontaxable revenue, P2,100,000 Revenue subject to 20% tax rate, P750,000 Bad debts expense for the period, P75,000 Bad debts written off during the year, P45,000 Gross income of installment sales of P450,000 (taxable when collected expected on 2022) The tax rate applicable for this year onwards is 30%. QUESTION: 7. Net income for the year is?
The information that follows pertains to Esther Food Products: a. At December 31, 2024, temporary differences were associated with the following future taxable (deductible) amounts: Depreciation Prepaid expenses Warranty expenses b. No temporary differences existed at the beginning of 2024. c. Pretax accounting income was $46,000 and taxable income was $9,000 for the year ended December 31, 2024. d. The tax rate is 25%. Required: Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2024. Complete this question by entering your answers in the tabs below. Calculation General Journal $ 32,000 11,000 (6,000) Complete the following table given below to record income taxes for 2024. Note: Amounts to be deducted should be entered with a minus sign. Description Pretax accounting income Permanent differences Income subject to taxation Temporary Differences Income taxable in current year $ Amount 46,000 X Tax Rate = x X Recorded as:
(Two Temporary Differences, One Rate, Beginning Deferred Taxes, Compute Pretax Financial Income) The following facts relate to Duncan Corporation.1. Deferred tax liability, January 1, 2017, $60,000.2. Deferred tax asset, January 1, 2017, $20,000.3. Taxable income for 2017, $105,000.4. Cumulative temporary difference at December 31, 2017, giving rise to future taxable amounts, $230,000.5. Cumulative temporary difference at December 31, 2017, giving rise to future deductible amounts, $95,000.6. Tax rate for all years, 40%. No permanent differences exist.7. The company is expected to operate profitably in the future.Instructions(a) Compute the amount of pretax financial income for 2017.(b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017.(c) Prepare the income tax expense section of the income statement for 2017, beginning with the line “Income before income taxes.”(d) Compute the effective tax rate for 2017.
LMNO Corporation was formed in 2011. It reported net income (loss) over the 2011 through 2017 tax years, before accounting for any net operating losses, as follows: 2011 2012 2013 2014 2015 2016 2017 Required: a. Determine annual taxable income after accounting for any net operating losses for 2011 to 2017, assuming the corporation does not waive the carryback period. Also determine any NOL carryforward to 2018 b. Determine annual taxable income after accounting for any net operating losses for 2011 to 2017, assuming the corporation waive the carryback period. Also determine any NOL carryforward to 2018. Note: For all requirements, leave no cells blank - be certain to enter "0" wherever required. 2011 2012 2013 2014 2015 $ (3,000) $ 16,300 $ 26,200 $(18,900) $ 18,500 $(9,100) $ 5,650 Year 2016 2017 2018 carryforward Answer is not complete. Taxable income Part b Part a $ $ $ ›› 01 0 $ $ 13,300 $ 26,200 OS 0 $ S 00$ $ 5,6506 $ S 00 * 3 *** 3 0 0 0
At December 31, 2018 PT ABC reported a deferred tax liability of Rp90.000 which was attributable to a taxable temporary difference of Rp300.000. The temporary difference is scheduled to reverse in 2022. During 2019, a new tax law increased the corporate tax rate from 30% to 40%. ABC should record this change by debiting: * Retained Earnings for Rp9.000. Income Tax Expense for Rp9.000. Retained Earnings for Rp30.000. Income Tax Expense for Rp30.000.
The following facts relate to Krung Thep Corporation: Deferred tax liability, January 1, 2015, $40,000 Deferred tax asset, January 1, 2015, $0 Taxable income for 2015, $115,000 Pretax financial income for 2015, $200,000 Cumulative temporary difference at December 31, 2015, giving rise to future taxable amounts, $220,000 Cumulative temporary difference at December 31, 2015, giving rise to future deductible amounts, $35, 000 Tax rate for all years, 40% The company is expected to operate profitably in the future. Instructions: Compute income taxes payable for 2015. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2015. Prepare the income tax expense section of the income statement for 2015, beginning with the line “income before income taxes.”

SEE MORE QUESTIONS

Recommended textbooks for you

SWFT Essntl Tax Individ/Bus Entities 2020

Accounting

ISBN:

9780357391266

Author:

Nellen

Publisher:

Cengage

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

SWFT Essntl Tax Individ/Bus Entities 2020

Accounting

ISBN:

9780357391266

Author:

Nellen

Publisher:

Cengage

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

SEE MORE TEXTBOOKS

GET THE APP

About FAQ Academic Integrity Sitemap Document Sitemap

Contact Bartleby Contact Research (Essays)High School Textbooks Literature Guides Concept Explainers by Subject Essay Help Mobile App

GET THE APP

Privacy

Your CA Privacy Rights

Your NV Privacy Rights

About Ads

Manage My Data

bartleby, a Learneo, Inc. business

Deferred tax liability related to depreciation difference	$38,000
Deferred tax asset related to warranty liability	62,000
Deferred tax liability related to revenue recognition	96,000
Deferred tax asset related to litigation accruals	27,000