Assignment Gradebook Downloadable eTextbook ORION t Brief Exercise 19-12 Your answer is partially correct. Try again. Metlock Corporation had the following tax information. Taxable Income Year Taxes Paid Tax Rate $299,000 $113,620 2015 38% 108,900 33% 330,000 2016 129,360 33% 392,000 2017 In 2018, Metlock suffered a net operating loss of $478,000, which it elected to carry back. The 2018 enacted tax rate is 32 Prepare Metlock's entry to record the effect of the loss carryback. (Credit account titles are automatically indented w no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Credit Debit Account Titles and Explanation X 239,740 Income Tax Refund Receivable 239,7403 Benefit Due to Loss Carryback OF ACCOUNTS SHOW LIST VIDEO: SIMILAR EXERCISE LINK TO TEXT Rights Reserved. A Pivis cn of Johr Wle& Sons Inc e2000-2019 John Wiley & Sons Inc. A Privacy Polic e O t ere to search hp f12 f1o f9 7 f6 fs f4 I01 & 7 % 00

Assignment Gradebook Downloadable eTextbook ORION t Brief Exercise 19-12 Your answer is partially correct. Try again. Metlock Corporation had the following tax information. Taxable Income Year Taxes Paid Tax Rate $299,000 $113,620 2015 38% 108,900 33% 330,000 2016 129,360 33% 392,000 2017 In 2018, Metlock suffered a net operating loss of $478,000, which it elected to carry back. The 2018 enacted tax rate is 32 Prepare Metlock's entry to record the effect of the loss carryback. (Credit account titles are automatically indented w no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Credit Debit Account Titles and Explanation X 239,740 Income Tax Refund Receivable 239,7403 Benefit Due to Loss Carryback OF ACCOUNTS SHOW LIST VIDEO: SIMILAR EXERCISE LINK TO TEXT Rights Reserved. A Pivis cn of Johr Wle& Sons Inc e2000-2019 John Wiley & Sons Inc. A Privacy Polic e O t ere to search hp f12 f1o f9 7 f6 fs f4 I01 & 7 % 00

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 4E: Single Temporary Difference: Multiple Rates At the end of 2019, Fulhage Company reported taxable...

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Single Temporary Difference: Multiple Rates At the end of 2019, Fulhage Company reported taxable income of 9,000 and pretax financial income of 10,600. The difference is due to depreciation for tax purposes in excess of depreciation for financial reporting purposes. The income tax rate for the current year is 40%, but Congress has enacted tax rates of 35% for 2020 and 30% for 2021 and beyond. Fulhage has calculated the excess of its financial depreciation over its tax depreciation for future years as follows: 2020, 600; 2021, 700; and 2022, 300. Prior to 2019, the company had no deferred tax liability or asset. Required: Prepare Fulhages income tax journal entry at the end of 2019.
Exercise 19-24 Beilman Inc. reports the following pretax income (loss) for both book and tax purposes. Year PretaxIncome (Loss) Tax Rate 2018 $120,000 20 % 2019 90,000 20 % 2020 (280,000) 25 % 2021 120,000 25 % The tax rates listed were all enacted by the beginning of 2018. A) Prepare the income tax section of the 2020 income statement beginning with the line “Operating loss before income taxes.” (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) B) Prepare the income tax section of the 2021 income statement beginning with the line “Income before income taxes.” (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Exercise 19-24 Beilman Inc. reports the following pretax income (loss) for both book and tax purposes. Year PretaxIncome (Loss) Tax Rate 2018 $120,000 20 % 2019 90,000 20 % 2020 (280,000) 25 % 2021 120,000 25 % The tax rates listed were all enacted by the beginning of 2018. Prepare the journal entries for years 2018–2021 to record income tax expense (benefit) and income taxes payable (refundable), and the tax effects of the loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-half of the benefits of the loss carryforward will not be realized. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Exercise 19-02 (Part Level Submission) The following information is available for Martinez Corporation for 2019 (its first year of operations). 1. Excess of tax depreciation over book depreciation, $40,400. This $40,400 difference will reverse equally over the years 2020–2023. 2. Deferral, for book purposes, of $19,900 of rent received in advance. The rent will be recognized in 2020. 3. Pretax financial income, $284,700. 4. Tax rate for all years, 20%.
Problem 19-02 The pretax financial income of Coronado Company differs from its taxable income throughout each of 4 years as follows. Year PretaxFinancial Income Taxable Income Tax Rate 2020 $300,000 $196,000 35 % 2021 342,000 248,000 20 % 2022 355,000 278,000 20 % 2023 452,000 540,000 20 % Pretax financial income for each year includes a nondeductible expense of $31,100 (never deductible for tax purposes). The remainder of the difference between pretax financial income and taxable income in each period is due to one depreciation temporary difference. No deferred income taxes existed at the beginning of 2020. Prepare journal entries to record income taxes in all 4 years. Assume that the change in the tax rate to 20% was not enacted until the beginning of 2021 Date Account Titles and Explanation Debit Credit 2020…
Problem 19-02 The pretax financial income of Coronado Company differs from its taxable income throughout each of 4 years as follows. Year PretaxFinancial Income Taxable Income Tax Rate 2020 $300,000 $196,000 35 % 2021 342,000 248,000 20 % 2022 355,000 278,000 20 % 2023 452,000 540,000 20 % Pretax financial income for each year includes a nondeductible expense of $31,100 (never deductible for tax purposes). The remainder of the difference between pretax financial income and taxable income in each period is due to one depreciation temporary difference. No deferred income taxes existed at the beginning of 2020. Prepare journal entries to record income taxes in all 4 years. Assume that the change in the tax rate to 20% was not enacted until the beginning of 2021 Date Account Titles and Explanation Debit Credit 2020…
Question 1At 30 June 2019, Beta Ltd had the following deferred tax balances:Deferred tax liability $18,000Deferred tax asset 15,000Beta Ltd recorded a profit before tax of $80,000 for the year to 30 June 2020, which included thefollowing items:Depreciation expense – plant $7,000Doubtful debts expense 3,000Long-service leave expense 4,000For taxation purposes the following amounts are allowable deductions for the year to 30 June 2020:Tax depreciation – plant $8,000Bad debts written off 2,000Depreciation ratesfor taxation purposes are higher than for accounting purposes. A corporate tax rateof 30% applies.Required:a) Determine the taxable income and income tax payable for the year to 30 June 2020. b) Determine by what amount the balances of the deferred liability and deferred tax asset will increase or decrease for the year to 30 June 2020 because of depreciation, doubtful debts and long-service leave. c) Prepare the necessary journal entries to account for income tax assuming…
Problem 16-8 (Algo) Multiple differences; taxable income given; two years; balance sheet classification; change in tax rate [LO16-1, 16-2, 16-3, 16-5, 16-6, 16-8] Skip to question [The following information applies to the questions displayed below.] Arndt, Inc. reported the following for 2021 and 2022 ($ in millions): 2021 2022 Revenues $ 936 $ 1,028 Expenses 792 848 Pretax accounting income (income statement) $ 144 $ 180 Taxable income (tax return) $ 108 $ 214 Tax rate: 25% Expenses each year include $54 million from a two-year casualty insurance policy purchased in 2021 for $108 million. The cost is tax deductible in 2021. Expenses include $2 million insurance premiums each year for life insurance on key executives. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2021 and 2022 were $55 million and $71 million, respectively. Subscriptions included in 2021 and…
Problem 16-8 (Algo) Multiple differences; taxable income given; two years; balance sheet classification; change in tax rate [LO16-1, 16-2, 16-3, 16-5, 16-6, 16-8] Skip to question [The following information applies to the questions displayed below.] Arndt, Inc. reported the following for 2021 and 2022 ($ in millions): 2021 2022 Revenues $ 936 $ 1,028 Expenses 792 848 Pretax accounting income (income statement) $ 144 $ 180 Taxable income (tax return) $ 108 $ 214 Tax rate: 25% Expenses each year include $54 million from a two-year casualty insurance policy purchased in 2021 for $108 million. The cost is tax deductible in 2021. Expenses include $2 million insurance premiums each year for life insurance on key executives. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2021 and 2022 were $55 million and $71 million, respectively. Subscriptions included in 2021 and…
Problem 16-7 (Algo) Multiple differences; calculate taxable income; balance sheet classification [LO16-2, 16-3, 16-5, 16-8] Sherrod, Inc., reported pretax accounting income of $92 million for 2021. The following information relates to differences between pretax accounting income and taxable income: Income from installment sales of properties included in pretax accounting income in 2021 exceeded that reported for tax purposes by $6 million. The installment receivable account at year-end 2021 had a balance of $8 million (representing portions of 2020 and 2021 installment sales), expected to be collected equally in 2022 and 2023. Sherrod was assessed a penalty of $3 million by the Environmental Protection Agency for violation of a federal law in 2021. The fine is to be paid in equal amounts in 2021 and 2022. Sherrod rents its operating facilities but owns one asset acquired in 2020 at a cost of $104 million. Depreciation is reported by the straight-line method, assuming a four-year…
IMPORTANT: PLEASE ANSWER CORRECTLY AND ILL LIKE THE QUESTION. Exercise 19-04 (Part Level Submission) Kingbird Company reports pretax financial income of $73,500 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $17,600. 2. Rent collected on the tax return is greater than rent recognized on the income statement by $19,900. 3. Fines for pollution appear as an expense of $10,500 on the income statement. Kingbird’s tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020.
Exercise 19-23 Spamela Hamderson Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Year Pretax Income(Loss) Tax Rate 2018 $120,000 17 % 2019 90,000 17 % 2020 (280,000) 19 % 2021 300,000 19 % The tax rates listed were all enacted by the beginning of 2018. Prepare the journal entries for 2020 and 2021, assuming that based on the weight of available evidence, it is more likely than not that one-fourth of the benefits of the loss carryforward will not be realized. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)