At the beginning of 2021; Cullumber, Inc. had a deferred tax asset of $26000 and a deferred tax liability of $36000. Pre-tax accounting income for 2021 was $1620000 and the enacted tax rate is 20%. The following items are included in Cullumber’s pre-tax income: Interest income from municipal bonds $132000 Accrued warranty costs, estimated to be paid in 2022 $272000 Operating loss carryforward $202000 Installment sales profit, will be taxed in 2022 $142000 Prepaid rent expense, will be used in 2022 $66000 What is Cullumber, Inc.’s taxable income for 2021? 1350000 2434000 1620000 1890000

Q: Sunland, Inc. had pre-tax accounting income of $3300000 and a tax rate of 20% in 2021, its first…

A: Income tax: It is the tax levied by the federal government on the income earned by individuals,…

Q: In 2022, the enacted tax rate is 25% for all current and future years, and Hynde Corp., in its first…

A: Deferred tax asset is like a prepaid tax the benefit of which will be received in future and a…

Q: Osprey Corporation, an accrual basis taxpayer, reported taxable income for 2021 and paid $15,000 on…

A:

Q: Required: 1. Determine the amounts necessary to record income taxes for 2021, and prepare the…

A: Journal entries refers to the official book of a firm/company which is used to record the day to day…

Q: Municipal bonds                             100,000 Litigation expense…

A: Deferred tax is created when taxable income of tax and accounting purposes are different. There are…

Q: A company had pretax financial income of $612,000 in 2021. During 2021, the following items cause…

A: The following computations are done to show the changes in the taxable income in 2021.

Q: During the year of 2021, Daniels corporation collects all of the Accounts Receivable and sells the…

A:

Q: ht Bay Resorts had the following deferred income tax items: Deferred tax asset of $54…

A: Answer:  Deferred tax liability of $120 million  related to a non current asset…

Q: At December 31, 2017, Appaloosa Corporation had a deferred tax liability of $25,000. At December 31,…

A: Workings: Given values: Deferred tax liability on December 31, 2017 is $ 25000

Q: GYV Ltd has the following deferred tax balances as at 30 June 2019. Deferred tax asset $900000…

A: Deferred Tax asset: Deferred tax asset is an assets that results from overpayment or advance payment…

Q: Almond Corporation, a calendar year C corporation, had taxable income of $400,000, $600,000 and…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Metals Corporation reports pretax financial income of $260,000 for 2019. The following items cause…

A: Income tax is the part of the income paid to the government. It is a is a government tax on the…

Q: vanhoe Corporation reported $202000 in revenues in its 2021 financial statements, of which $68,000…

A: SOlution: Deferred income tax liability = Future taxable amount * Tax rate of 2022

Q: Gore Company, organized on January 2, 2021, had pretax accounting income of $6,200,000 and taxable…

A: Journal entries refers to the systematic documentation of the financial transactions of the company…

Q: At the beginning of 2021; Cullumber, Inc. had a deferred tax asset of $26000 and a deferred tax…

A: Taxable Income is Income as per Tax Laws . This Income can be different from accounting due to mainy…

Q: Crane Corporation has one temporary difference at the end of 2020 that will reverse and cause…

A: Total reversal amount = reverse in 2021 + reverse in 2022 + reverse in 2023 = $56200+61000 +66500 =…

Q: KL Corporation prepared the following reconciliation for its first year of operations: ·      Pretax…

A: Solution: Taxable income = Pretax financial income - Tax exempt interest - Taxable temporary…

Q: Larkspur Corporation has one temporary difference at the end of 2020 that will reverse and cause…

A: Deferred tax Assets/liability: A deferred tax asset is created  from overpayment or advance payment…

Q: Sherrod, Inc., reported pretax accounting income of $76 million for 2021. The following information…

A: Every business must be evidenced in at least two places, according to the logic of a journal entry…

Q: Anchor, inc, reports pretax financial income of $100,000 for 2020, S120,000 for 2021, and for 2022.…

A: Determination of taxable income    2020 2021 2022 Pretax Financial income $100,000 $120,000…

Q: The following information was taken from the accounting records of Lancer Inc, for the year ending…

A: The question is related to computation of taxable Income for the year 2020. We will proceed with…

Q: Sherrod, Inc., reported pretax accounting income of $100 million for 2021. The following information…

A: Compute the amounts to record income tax as follows: Result:

Q: herrod, Inc., reported pretax accounting income of $82 million for 2021. The following information…

A: What is Deferred tax? It is the difference between the asset and liability entries on the balance…

Q: Allmond Corporation, organized on January 3, 2021, had pretax accounting income of $16 million and…

A: Part 1:

Q: Kingbird Corporation began 2020 with a $55,200 balance in the Deferred Tax Liability account. At the…

A: Deferred tax liability = cumulative temporary difference x tax rate -  balance in the Deferred Tax…

Q: Addison Co. has one temporary difference at the beginningof 2017 of $500,000. The deferred tax…

A: Prepare the necessary journal entry in 2017to adjust deferred taxes.

Q: At December 31, 2020, Appaloosa Corporation had a deferred tax liability of $25,000. At December 31,…

A: Income Tax:Income earned by a taxable person during a financial year is subject to income tax, and…

Q: Tamarisk Corporation began 2020 with a $50,600 balance in the Deferred Tax Liability account. At the…

A: Deferred tax liability arises when the tax due for one accounting period arising out of timing…

Q: The estimated taxable income for Love Corporation on January 1, 2021, was P80,000, P100,000,…

A: As per IAS 34, interim financial reporting, when there is a change in annual effective tax rate,…

Q: Baltimore inc reported pretax gaap income of $45,000 in 2020. The company determined it had deducted…

A: The first step is to compute the taxable income of the business. For computing the taxable income,…

Q: Yellow Corporation, a calendar-year taxpayer, made estimated tax payments of $40,000 for 2020…

A: Impact on Yellow Corporation's E&P of the payment of estimated taxes and the receipt of the…

Q: At December 31, 2020, ABC Corporation had a deferred tax liability of $25,000. At December 31, 2021,…

A: Income tax expense includes current tax expense and deferred tax. Deferred tax liability to be added…

Q: henron, Inc. had pre-tax accounting income of P1,350,000 and a tax rate of 40% in 2020, its first…

A: PARTICULARS    AMOUNT IN (P) Pre-Tax Accounting income           P1,350,000…

Q: Martinez Corporation reports pretax financial income of $264,100 for 2020. The following items cause…

A: Taxable income= Pretax financial income +/- temporary differences +/- permanent differences.…

Q: Four Square Services Corporation estimates that its 2021 taxable income will be $1,000,000. Thus, it…

A: Given:Estimated taxable income for 2021=$1000000Liability=$210000To compute:Minimum quarterly…

Q: At the beginning of 2021, a company had future deductible amounts of $400,000 and the enacted tax…

A: Future deductable amount = 400000*27% = $108000 Amount that need to be deductable due to change in…

Q: Force Corporation has one temporary difference at the end of 2020 that will reverse and cause…

A: A journal entry is the first step—and an essential function—of the accounting process. Journal…

Q: South Carolina Corporation has one temporary difference at the end of 2020 that will reverse and…

A: a.Compute taxable income and income taxes payable for 2020.

Q: At December 31, 2018 AP Corporation had a deferred tax liability of P250, 000. At December 31, 2019,…

A: Income tax expense is the obligation for the tax payers to pay the tax to the government authorities…

Q: Interest income on municipal governmental bonds $ 92,000 Depreciation claimed on the 2021 tax return…

A: Tax is an amount that is charged by the government from the individual and organization on the…

Q: Blossom Corporation began 2020 with a $57,040 balance in the Deferred Tax Liability account. At the…

A: Temporary difference / Future taxable amount = $434,000 Deferred tax liability at the end of 2020 =…

Q: For its current tax year, Ilex Corporation has ordinary income of $250,000, a short-term capital…

A: Tax is a liability that has to be paid to the government that acts as revenue for the government.…

Q: Crane Corporation has one temporary difference at the end of 2020 that will reverse and cause…

A: Solution: Taxable income = Pretax income - Taxable temporary differences = $285,200 - ($56,200 +…

Q: Sherrod, Inc., reported pretax accounting income of $70 million for 2021. The following information…

A: A deferred tax liability is a tax that is assessed or is due for the current period but has not yet…

Q: In 2020, Sunland Corporation had pretax financial income of $185,000 and taxable income of $117,000.…

A: Financial Income is immaterial. TaxableIncome                  $117,000 Effective Taxrate…

Q: The following information was taken from the accounting records of Lancer Inc, for the year ending…

A: Total Deferred Tax Asset for  2020 = Deferred revenue x tax rate

Q: Sherrod, Inc., reported pretax accounting income of $82 million for 2021. The following information…

A: SOLUTION 1- EVENT PARTICULARS AMOUNT HINT   PRE TAX ACCOUNTING INCOME (AS GIVEN) 82   B ADD…

Q: In 2020, NB Incorporated’s federal taxable income was $254,000. Compute the required installment…

A: Introduction: NB's Incorporated federal taxable income was $254,000 in 2020, and required is the tax…

Q: Crane Corporation has one temporary difference at the end of 2020 that will reverse and cause…

A: Solution:- a) Computation of taxable income and income taxes payable for 2020 as follows:- Note:-…