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.
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.
Expert Answer
Want to see the step-by-step answer?
Related Accounting Q&A
Q: What should a MNC do to prevent bribery?
A: Bribery is the act of giving or receiving something of value in exchange for some kind of influence ...
Q: In two or three paragraphs explain the purpose of variance analysis and its benefits and drawbacks.
A: Standard costs form a significant part of managerial accounting. They are usually associated with di...
Q: I'm having trouble solving this problem. Thanks!
A: (a) Determine the times interest earned ratio:
Q: how do expenses affect equity?
A: Equity represents the sum which hs been contributed by the owners or which belongs to the equity sto...
Q: Woh Che Co. has four departments: materials, personnel, manufacturing, and packaging. In a recent mo...
A: Based on the given information allocate the indirect expenses to each of the department.Allocation o...
Q: What is the relationship between the amount shown in the adjusted trial balance column for an accoun...
A: Adjusted trial balance: Adjusted trial balance is that statement which contains complete list of ac...
Q: Problem 25-3A Computation of cash flows and net present values with alternative depreciation methods...
A: Compute the net income after tax:
Q: Wildhorse Co. purchased equipment on January 1 at a list price of $155000, with credit terms 3/10, n...
A: Compute the total cost of new equipment:
Q: I am resubmitting this question as it was not fully answered and it did not have the correct answers...
A: 1. As per general accepted accounting principles, the absorption method is followed in the preparati...
Q: Suppose your company sells goods for $450, of which $275 is received in cash and $175 is on account....
A: Operating activities: Operating activities refers to those activities which are performed by the com...
Q: Toxaway Company is a merchandiser that segments its business into two divisions—Commercial and Resid...
A: Since we only answer up to 3 sub-parts, we'll answer the first 3. Please resubmit the question ans s...
Q: What is imputed interest?
A: Interest: Interest is a charge against the amount due, Interest is paid on the amount borrowed as a ...
Q: Hi i need help answering this question please! The last section got a bit cut off for part e but it ...
A: Click to see the answer
Q: Exercise 15-1During its first year of operations, Indigo Corporation had the following transactions ...
A: (a) Preparation of the journal entries for these transactions, assuming that the common stock has a ...
Q: Gunflint adventures operate an airplane service that take fishing parties to a remote lake season la...
A: Determine the age of the airplane in months:
Q: unland, Inc. produces three types of balloons—small, medium, and large—with the following characteri...
A: Calculate the contribution margin per hour:
Q: Winkle, Kotter, and Zale is a small law firm that contains 10 partners and 12 support persons. The f...
A: 1-aCalculate predetermined overhead rate for Research and Document Department:
Q: Cullumber Company markets CDs of numerous performing artists. At the beginning of March, Cullumber C...
A: Periodic Inventory System: Periodic Inventory System refers to the accounting system under which the...
Q: Varto Company has 12,400 units of its sole product in inventory that it produced last year at a cost...
A: It is to be noted that the last of th inventory incurred last year is a sunk cost and not relevant f...
Q: Bb Blackboard Learn mbe Course: ACCT 209: Survey of Acc X X New Tab ckboard.com/webapps/ubsh-Iti-int...
A: 1.Credit terms - 2/10 , n/30; Date June 8:Cash received = $30,000 (100% - 2%)Cash received = $29,400
Q: If I were to have accounts receivable in the millions and were $ 74 million at the beginning of year...
A: Accounts receivable turnover: This is the ratio which analyzes the number of times accounts receivab...
Q: 4. ABC company suffered inventory loss from market declines in April 2017. As a result, the company ...
A: As per ASC Section 330-10-35-14, when the cost of the inventory has been written down below its cost...
Q: Tempo Company’s fixed budget (based on sales of 7,000 units) for the first quarter of calendar year ...
A: Calculate the sales price per unit.
Q: Which of the following constitute a tax and why? l Payment for driver’s license? l Payment for ...
A: Tax: It is an amount which is a compulsory contribution to government’s revenue and levied by the g...
Q: Carmen had worked for Sparrow Corporation for thirty years when she died of a heart attack at age 60...
A: In favour of the first question regarding whether the payments made by Sparrow Corporation must be t...
Q: The two independent cases are listed below: Case A Case B Year 2 Year 1 Year 2 Y...
A: Cash flows from operating activities: Cash flows from operating activities refer to the cash receiv...
Q: On January 1, 2019, Bailey Industries had shares outstanding as follows.6% cumulative preference sha...
A: Earnings per share is a financial ratio that indicates a company’s ability to earn revenue for its c...
Q: Q: Which situation is better for the debt financing of a subsidiary? A. 16% income tax, 10% withhold...
A: AssumptionsLet us understand the best situation for the parent company in Debt financing to its subs...
Q: In two or three paragraphs explain the purpose of variance analysis and its benefits and drawbacks.
A: Click to see the answer
Q: Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to plan f...
A: Click to see the answer
Q: The following information was drawn from the Year 5 balance sheets of two companies: Company Ass...
A: Return on equity ratio: Rate of return on equity ratio is used to determine the relationship betwee...
Q: Andretti Company has a single product called a Dak. The company normally produces and sells 85,000 D...
A: Incremental cost: Incremental cost refers to the cost incurred in producing an additional unit, in o...
Q: Q1. A own > 50% voting rights of B, and has the right to appoint three out of four board members ...
A: Voting Rights Voting rights refer to the right given to the major shareholders of the company to pro...
Q: Identy the type(s) of gain or loss that would be recognized on the following asset sales as capital,...
A: Capital gain relates to profits on the sale of investments or real estateSec 1231 gains is computed ...
Q: what are the differences between the following components of taxable income o De...
A: Difference between the Deductions for AGI and Deductions from AGI: Deductions for AGI are also refer...
Q: How do I solve this problem? I attempted it and got 79,100 for my final answer but I'm not sure if I...
A: Cash flow statement: Cash flow statement displays the summary of all inflows and outflows of cash in...
Q: Guenter and Firmin both of whom are CPAs, form a partnership with Guenter investing $100,00 and firm...
A: A general partnership is an agreement in which two or more partners agree to share the profits and l...
Q: The Melrose Corporation produces a single product, Product C. Melrose has the capacity to produce 10...
A: Incremental cost: Incremental cost refers to the cost incurred in producing an additional unit, in o...
Q: Engines Done Right Co. is trying to establish the standard labor cost of a typical engine tune-up. T...
A: Direct labor variances:The difference between the actual labor cost in the production and the standa...
Q: Patents are asset, liability, quity, revenue or expense?
A: Assets: These are the resources owned and controlled by business as a result of a past transaction o...
Q: I had previously asked this question and there was no solution attached to it. I should be credited ...
A: Break-even sales: Break-even sales is that level of sales at which the firm is just covering its exp...
Q: What are the three major types of activities classified on a statement of cash flows? Give an exampl...
A: Cash flow statement Cash flow statement shows the summary of all inflows and outflows of cash in a b...
Q: I understand th accounting equation is: Liabilities + Stock Holders’ Equity = Assets How do you prep...
A: Transaction: A transaction is a business event which has a monetary value that creates an impact on ...
Q: The Geological consulting firm Gilbert, Marsh,& Kester prepare adjusting entries on a monthly ba...
A: Calculate the accrued interest on note for the month of December.
Q: MC issued $5million of 20-year, 9.5 percent bonds on July 1, 2018, at 98. Interest is due on June 30...
A: Journal entry: Journal entry is book of original entry used to record the economic event and transac...
Q: What are some examples of such exclusions in gross income?
A: Gross Income: For individual: Gross income includes the income of an individual in the form of wages...
Q: East Alabama Medical Center uses nonfinancial performance measures to track the following objectives...
A: Balanced Scorecard helps in evaluating a corporation using a both financial and non-financial measu...
Q: Concord Company gathered the following data about the three products that it produces: Product ...
A: We can solve the question as follows :
Q: The partnership of Avery and Kirk was formed on July 1, when George Avery and Dinah Kirk agreed to i...
A: Partnership: Partnership refers to the business run by two or more individuals based on some agreed ...
Q: Clem and Chloe, a married couple, sell their principal residence that they have owned and occupied f...
A: Disposal of Assets: Disposal is an activity of selling the worn-out assets that is no longer in need...