Evergreen companies 2020 reconciliation between pretax GAAP income and taxable income is as follows. Pretax GAAP income of $200,000. Depreciation adjustment of ($40,000). Permanent difference of $1250. Taxable income of $161,250. The company had one temporary difference due to the GAAP basis of equipment exceeding the tax basis of the equipment. Record the income tax journal entry for 2020 assuming an enacted tax rate of 25%. assume that the December 31, 2019 deffered tax liability balance was $5000.

AA Company began operations at the beginning of 2020. The following information pertains to this company: Pretax financial income for 2020 is P100,000 The tax rate enacted for 2020 and future years is 40% Differences between 2020 income statement and the tax return are listed below:  Warranty expense accrued for financial reporting purposes amounts to P7,000. Warranty deductions per tax return amounted to P2,000 Income on construction contracts using the percentage of completion method per books amounts to P92,000. Income on construction contracts for tax purposes amounts to P67,000. Depreciation of PPE for financial reporting purposes amounts to P60,000. Depreciation of these assets amounts to P80,000 for the tax return. A P3,500 fine paid for violation of pollution laws was deducted in computing pretax financial income. Interest revenue earned on an investment in tax-exempt bonds amounts to P1,500.  Taxable income is expected for the next few years. Compute the deferred tax…

Dry Valley Corporation reported the following items in its adjusted trial balance for the year ended December 31, 2026: Income from continuing operations before income taxes Gain on disposal of discontinued component Loss from operations of discontinued component Dry Valley is subject to a 20% tax rate. Instructions $120,000 28,000 (60,000) Prepare the December 31, 2026, income statement for Dry Valley Corporation, starting with income from continuing operations before income taxes.

ABC Corporation prepared the following reconciliation for its first year of operations:·      Pretax financial income for 2020- P1,200,000·      Tax exempt interest- P100,000·      Taxable temporary difference - P300,000The temporary difference will reverse evenly over the next two years at an enacted tax rate of 40%. The enacted tax rate for 2020 is 28%. What amount should be reported in its 2020 income statement as the current portion of its provision for income taxes?

A company reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Year Pretax Income (Loss) Tax Rate 2018 $138,000 18% 2019 81,000 18 2020 (258,700) 21 2021 303,200 21 Assuming that the company can carryforward its 2020 net operating loss, what is the amount of deferred tax asset the company would report at the end of 2020 related to this loss carryforward?

the pretax financial income (or loss) figures for metlock company are as follows 2022- 77000; 2023-(49000); 2024-(44000); 2025-125000; 2026-95000. pretax financial income (or loss) and taxable (loss) were the same for all years involved. Assumed a 20% tax rate for all years. Prepare the journal entries for the years 2022 and 2026 to record income tax expense and the effects of the net operating loss carry forwards. all income and losses related to normal operations (in recording the benefits of a loss carry forward assume that no valuation account is deemed necessary Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

A company reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Year Pretax Income (Loss) Tax Rate 2018 $167,000 18% 2019 56,000 18 2020 (579,300) 23 2021 320,100 27 2022  580,700  31 Assuming that the company can carryforward its 2020 net operating loss, what is the amount of deferred tax asset the company would report at the end of 2020 related to this loss carryforward?

Parker Ltd had the following opening balances for the current year beginning 1 July 2020: Deferred tax asset (DTA)       $24 000 Deferred tax liability (DTL)   $15 000 If the company tax rate decreased from 30% to 25%, the adjusting journal entry would include:   a. Dr DTL    3 000; Cr DTA    4 800   b. Cr DTL     4 000; Dr DTA     2 500   c. Cr DTA     4 000; Dr DTL    2 500   d. Cr DTL     4 800; Dr DTA    3 000   e. Cr DTA     1 200; Dr DTL    750

Foster Company reported pretax financial income of $350,000 for 2021. Foster uses an accelerated form of depreciation for tax purposes, and it exceeds book depreciation by $50,000. The tax rate for 2021 is 20%. Record the journal entry at the end of 2021, be sure to include calculations, as well as income tax expense, a deferred account, and income tax payable.

The pretax financial income (or loss) figures for Marin Company are as follows. 2017   76,000   2018   (48,000 ) 2019   (43,000 ) 2020   116,000   2021   104,000   Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 25% tax rate for 2017 and a 20% tax rate for the remaining years.Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carryforwards. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary. Account Titles and Explanation Debit Credit 2017 enter an account title to record carryback enter a debit amount enter a credit amount enter an account title to record carryback enter a debit amount enter a credit amount 2018 enter an account title to record carryforward enter a debit amount enter a…