During 2020, Sheffield Co.s first vear of operations, the company reports pretax financial income at $252,300. Sheffield's enacted tax rate is 45% for 2020 and 20% for all later years. Sheffield expects to have taxable income in each of the next 5 years. The effects on future tax returns of temporary differences existing at December 31, 2020, are summarized as follows. Future Years 2021 2022 2023 2024 2025 Total Future taxable (deductible) amounts Installment sales Depreciation Uneamed rent $31,300 5,800 5,800 5,800 $5,800 $5,800 (48.500) (48.500) $31,300 $31,300 $93,900 29.000 (97,000) Complete the schedule below to compute deferred taxes at December 31, 2020. (Negative amounts using either a negative sign preceding the number e.g. 45 or parentheses e.g. (45).) Deferred Tax Future Taxable Temporary Difference (Deductible) Amounts $93.900 Тах Нate (Asset) Liability Installment sales Depreciation 29,000 Unearned rent (97,000) Totals Compute taxable income for 2020. Taxable income for 2020

During 2020, Sheffield Co.s first vear of operations, the company reports pretax financial income at $252,300. Sheffield's enacted tax rate is 45% for 2020 and 20% for all later years. Sheffield expects to have taxable income in each of the next 5 years. The effects on future tax returns of temporary differences existing at December 31, 2020, are summarized as follows. Future Years 2021 2022 2023 2024 2025 Total Future taxable (deductible) amounts Installment sales Depreciation Uneamed rent $31,300 5,800 5,800 5,800 $5,800 $5,800 (48.500) (48.500) $31,300 $31,300 $93,900 29.000 (97,000) Complete the schedule below to compute deferred taxes at December 31, 2020. (Negative amounts using either a negative sign preceding the number e.g. 45 or parentheses e.g. (45).) Deferred Tax Future Taxable Temporary Difference (Deductible) Amounts $93.900 Тах Нate (Asset) Liability Installment sales Depreciation 29,000 Unearned rent (97,000) Totals Compute taxable income for 2020. Taxable income for 2020

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 13P

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