Subject - account Please help me. Thankyou. Times-Roman Publishing Company reports the following amounts in its first three years of operation:2022($ in thousands)Pretax accounting incomeTaxable income$ 1701902023$ 170180The difference between pretax accounting income and taxable income is due to subscription revenue for one-year magazinesubscriptions being reported for tax purposes in the year received, but reported in the income statement in later years when theperformance obligation is satisfied. The income tax rate is 25% each year. Times-Roman anticipates profitable operations in the future.1.2021Required:1. What is the balance sheet account that gives rise to a temporary difference in this situation?2. For each year, indicate the cumulative amount of the temporary difference at year-end. (Enter your answers in thousands.)3. Determine the balance in the related deferred tax account at the end of each year. Is it a deferred tax asset or a deferred taxllability? (Enter your answers in thousands rounded to 1 decimal place.)2.3.$ 200220Temporary differenceWhat is the balance sheet account that gives rise to a temporarydifference in this situation?December 31202120222023

Deferred Subscription revenue is recorded on a company's balance sheet as a liability. It is treated…

Answered: Required: 1. What is the balance sheet…

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 9MC: Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and...

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Similar questions

In the current year, Madison Corporation had 50,000 of taxable income at a tax rate of 25%. During the year, Madison began offering warranties on its products and has a Warranty liability for financial reporting purposes of 5,000 at the end of the year. Warranty expenses are not deductible until paid for income tax purposes. Prepare the journal entry to record Madisons income taxes at the end of the year.
Comprehensive Colt Company reports pretax financial income of 143,000 in 2019. In addition to pretax income from continuing operations (of which revenues are 295,000), the following items are included in this pretax income: Colts taxable income totals 93,000 in 2019. The difference between the pretax financial income and the taxable income is due to the excess of tax depreciation over financial depreciation on assets used in continuing operations. At the beginning of 2019, Colt had a retained earnings balance of 310.000 and a deferred tax liability of 8,100. During 2019, Colt declared and paid dividends of 48,000. It is subject to tax rates of 15% on the first 50,000 of income and 30% on income in excess of 50,000. Based on proper interperiod tax allocation procedures, Colt has determined that its 2019 ending deferred tax liability is 14,100. Required: 1. Prepare a schedule for Colt to allocate the total 2019 income tax expense to the various components of pretax income. 2. Prepare Colts income tax journal entry at the end of 2019. 3. Prepare Colts 2019 income statement. 4. Prepare Colts 2019 statement of retained earnings. 5. Show the related income tax disclosures on Colts December 31, 2019, balance sheet.
Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and taxable income for 2020. The prior period adjustment was the result of an error in calculating bad debt expense for 2019. The current tax rate is 30%, and no change in the tax rate has been enacted for future years. When the company applies intraperiod income tax allocation, the prior period adjustment will be shown on the: a. income statement at 12,000 b. income statement at 8,400 (net of 3,600 income taxes) c. retained earnings statement at 12,000 d. retained earnings statement at 8,400 (net of 3,600 income taxes)

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