Miner Company had pretax accounting income for 2021, its first year of operations, of $758,000. In calculating that income, Miner subtracted a $15,000 fine paid for violating a law. Depreciation on the tax return for the year was $56,000, but book depreciation was only $42.000. Deferred revenues, amounts collected and taxable during 2021 but not yet recognized as revenues, totaled $23,000. The 2021 tax rate is 25%, but the tax rate for all years after 2021 has already been enacted to increase to 30%. Make the journal entry to record taxes for 2021. If you have both deferred tax assets and deferred tax liabilities, record them separately. Show your work.
Miner Company had pretax accounting income for 2021, its first year of operations, of $758,000. In calculating that income, Miner subtracted a $15,000 fine paid for violating a law. Depreciation on the tax return for the year was $56,000, but book depreciation was only $42.000. Deferred revenues, amounts collected and taxable during 2021 but not yet recognized as revenues, totaled $23,000. The 2021 tax rate is 25%, but the tax rate for all years after 2021 has already been enacted to increase to 30%. Make the journal entry to record taxes for 2021. If you have both deferred tax assets and deferred tax liabilities, record them separately. Show your work.
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 5MC: At the beginning of 2019, Conley Company purchased an asset at a cost of 10,000. For financial...
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