Ronin, Inc. had pre-tax accounting income of $2.700,000 and a tax rate of 40% in 2018, its first year of operations. During 2018 the company had the following transactions Received rent from Jean Co. for 2019 of $96,000. Municipal bond income of $120,000. Depreciation for tax purposes in excess of book depreciation was $60,000 Installment sales profit to be taxed in 2019 is $162,000. For 2018, what is the amount of income taxes payable for Ronin, Inc? a) b) At the end of 2018, which of the deferred tax accounts and balances exist at December 31, 2018, and what are the balances?

Ronin, Inc. had pre-tax accounting income of $2.700,000 and a tax rate of 40% in 2018, its first year of operations. During 2018 the company had the following transactions Received rent from Jean Co. for 2019 of $96,000. Municipal bond income of $120,000. Depreciation for tax purposes in excess of book depreciation was $60,000 Installment sales profit to be taxed in 2019 is $162,000. For 2018, what is the amount of income taxes payable for Ronin, Inc? a) b) At the end of 2018, which of the deferred tax accounts and balances exist at December 31, 2018, and what are the balances?

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 3RE: In the current year, Madison Corporation had 50,000 of taxable income at a tax rate of 25%. During...

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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.
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.
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