Presented below are two independent situations related to future taxable and deductible amounts resulting from temporary differences existing at December 31, 2020. 1. Sheridan Co. has developed the following schedule of future taxable and deductible amounts. Taxable amounts Deductible amount Taxable amounts Deductible amount 2021 2022 2023 2. Skysong Co. has the following schedule of future taxable and deductible amounts. Other Assets $300 $300 $300 Deferred Tax Asset 2021 $300 Other Assets 2022 Deferred Tax Asset $300 eTextbook and Media 2023 $300 (2,100) 2024 Both Sheridan Co, and Skysong Co. have taxable income of $3,700 in 2020 and expect to have taxable income in all future years. The tax rates enacted as of the beginning of 2020 are 30% for 2020-2023 and 35% for years thereafter All of the underlying temporary differences relate to noncurrent assets and liabilities. December 31, 2020 $300 1. Compute the net amount of deferred income taxes to be reported at the end of 2020, and indicate how it should be classified on the balance sheet for situation one. (2,000) . Compute the net amount of deferred income taxes to be reported at the end of 2020, and indicate how it should be classified on the alance sheet for situation one. Deferred income taxes to be reported at the end of 2020 in Sheridan Co. $ December 31, 2020 2024 SHERIDAN CO. Balance Sheet (Partial) $300 SKYSONG CO. Balance Sheet 2025 Deferred income taxes to be reported at the end of 2020 in Skysong co. $300 2. Compute the net amount of deferred income taxes to be reported at the end of 2020, and indicate how it should be classified on the balance sheet for situation two. 200 $ 200 270 270
Presented below are two independent situations related to future taxable and deductible amounts resulting from temporary differences existing at December 31, 2020. 1. Sheridan Co. has developed the following schedule of future taxable and deductible amounts. Taxable amounts Deductible amount Taxable amounts Deductible amount 2021 2022 2023 2. Skysong Co. has the following schedule of future taxable and deductible amounts. Other Assets $300 $300 $300 Deferred Tax Asset 2021 $300 Other Assets 2022 Deferred Tax Asset $300 eTextbook and Media 2023 $300 (2,100) 2024 Both Sheridan Co, and Skysong Co. have taxable income of $3,700 in 2020 and expect to have taxable income in all future years. The tax rates enacted as of the beginning of 2020 are 30% for 2020-2023 and 35% for years thereafter All of the underlying temporary differences relate to noncurrent assets and liabilities. December 31, 2020 $300 1. Compute the net amount of deferred income taxes to be reported at the end of 2020, and indicate how it should be classified on the balance sheet for situation one. (2,000) . Compute the net amount of deferred income taxes to be reported at the end of 2020, and indicate how it should be classified on the alance sheet for situation one. Deferred income taxes to be reported at the end of 2020 in Sheridan Co. $ December 31, 2020 2024 SHERIDAN CO. Balance Sheet (Partial) $300 SKYSONG CO. Balance Sheet 2025 Deferred income taxes to be reported at the end of 2020 in Skysong co. $300 2. Compute the net amount of deferred income taxes to be reported at the end of 2020, and indicate how it should be classified on the balance sheet for situation two. 200 $ 200 270 270
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 8E: Incomc Taxes Then Company has been in operation for several years. It has both a deductible and a...
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Aa.9.
Transcribed Image Text:Presented below are two independent situations related to future taxable and deductible amounts resulting from temporary
differences existing at December 31, 2020.
1. Sheridan Co. has developed the following schedule of future taxable and deductible amounts.
Taxable amounts
Deductible amount
Taxable amounts
Deductible amount
2021
2. Skysong Co. has the following schedule of future taxable and deductible amounts.
Other Assets
$300 $300 $300
Show Transcribed Text
Deferred Tax Asset
2021
$300
2022 2023
Other Assets
Deferred Tax Asset
eTextbook and Media
2022
$300
Text
2023
Both Sheridan Co, and Skysong Co. have taxable income of $3,700 in 2020 and expect to have taxable income in all future years. The
tax rates enacted as of the beginning of 2020 are 30% for 2020-2023 and 35% for years thereafter All of the underlying temporary
differences relate to noncurrent assets and liabilities.
$300
(2.100)
1. Compute the net amount of deferred income taxes to be reported at the end of 2020, and indicate how it should be classifed on the
balance sheet for situation one.
2024
December 31, 2020
$300
1. Compute the net amount of deferred income taxes to be reported at the end of 2020, and indicate how it should be classified on the
balance sheet for situation one.
(2,000)
Deferred income taxes to be reported at the end of 2020 in Sheridan Co. $
2024
SHERIDAN CO.
Balance Sheet (Partial)
December 31, 2020
2025
$300
SKYSONG CO.
Balance Sheet
$300
Deferred income taxes to be reported at the end of 2020 in Skysong co. $
2. Compute the net amount of deferred income taxes to be reported at the end of 2020, and indicate how it should be classified on the
balance sheet for situation two.
200
200
270
270
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