Dell Technologies Inc. the following information for December 2019-2021 2019 2020 2021 Pretax Accounting Income (2,361) (4) 3,670 Tax Rate for 2019-2021 – 35% a. Dell paid in advance for Insurance for 3 years beginning 2019, $15,000. b. Unrealised Gain was recorded in 2020 for an investment but it was not sold until 2021, $6,000 c. Dell recorded bad debt expense of $4,000 in 2021 which the government did not recognize. d. Interest received in 2020 for $4,500 was from a government bond investment. Requirements: 1. Identify the permanent vs the temporary differences. 2. Prepare a schedule showing the calculation of the taxable income for both 2019 - 2021. 3. Prepare journal entries for each year (2019 – 2021) 4. Show how any 2021 tax related amounts should be classified and reported in the 2021 balance sheet.
3. Dell Technologies Inc. the following information for December 2019-2021
2019 2020 2021
Pretax Accounting Income (2,361) (4) 3,670
Tax Rate for 2019-2021 – 35%
a. Dell paid in advance for Insurance for 3 years beginning 2019, $15,000.
b. Unrealised Gain was recorded in 2020 for an investment but it was not sold until 2021, $6,000
c. Dell recorded
d. Interest received in 2020 for $4,500 was from a government bond investment.
Requirements:
1. Identify the permanent vs the temporary differences.
2. Prepare a schedule showing the calculation of the taxable income for both 2019 - 2021.
3. Prepare
4. Show how any 2021 tax related amounts should be classified and reported in the 2021 balance sheet.
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