Shetland Inc. had pretax financial income of $154,000 in 2017. Included in the computation of that amount is insurance expense of $4,000 which is not deductible for tax purposes. In addition, depreciation for tax purposes exceeds accounting depreciation by $10,000. Prepare Shetland’s journal entry to record 2017 taxes, assuming a tax rate of 45%.

Q: Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid…

A:

Q: The pretax financial income (or loss) figures for Whispering Company are as follows. 2016…

A:

Q: Feagler Company’s current income taxes payable relatedto its taxable income for 2017 is $460,000. In…

A: Income Tax Expenses: The expenses which are related to the taxable income of the individuals and…

Q: Bain co. had the following tax information. In 2018 Bain co. suffered a net operating loss of 48,000…

A: Loss carrybacks are similar to loss carry forward, except that companies apply their net operating…

Q: Gordon Company was started on January 1, 2010 and has two temporary differences between its income…

A: Journal entry refers to the first step in the accounting process, which signifies recording of…

Q: Oxford Corporation began operations in 2017 and reported pretax financial income of $225,000 for the…

A:

Q: At December 31, 2017, Suffolk Corporation had an estimated warranty liability of $105,000 for…

A: Deferred tax asset: When Income Tax Expense account is more than the Income Tax Payable account,…

Q: This company began operations in 2014.  The table below contains the company’s taxable income during…

A: As per the provisions, if the business entity suffers losses in one year, then such losses can be…

Q: Stone Co. began operations in 2016 and reported $225,000 in income before income taxes for the year.…

A:

Q: On December 31, 2020, Landmark Company reported the following: Income before tax for accounting…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: Bellago  Ltd made an accounting profit before tax of $75,000 for the year ended 30 June 2020.The…

A: Solution: Calculation of the current tax liability for the year ended 30 June 2020: Bellago Ltd…

Q: Youngman Corporation has temporary differences at December 31, 2017, that result in the following…

A: Deferred tax asset: When Income Tax Expense account is more than the Income Tax Payable account,…

Q: In its December 31, 2016, balance sheet, Shin Co. had income taxes payable of $13,000 and a current…

A:

Q: Pito Company has been in operation for several years. During those years, the company has been…

A: Working Note: 1. At the end of the year 2016, The book value of the current liability is $6,000…

Q: Conlin Corporation had the following tax information. Year Taxable Income Tax Rate Taxes Paid…

A: Workings:

Q: At the beginning of 2016, Norris Company had a deferred tax liability of $6,400, because of the use…

A: I am answering the first 3 sub-parts of the question as per bartleby guidelines. Please re-submit…

Q: Wynn Farms reported a net operating loss of $285,000 for financial reporting and tax purposes in…

A: 1.  Formulas first sub part:

Q: In the first year of operations 2021, Samuel Inc. had a pre-tax accounting income of $4,050,000 and…

A: Step 1 When we find income for taxable purpose, it will be different form income under accounting…

Q: At the beginning of 2018, FECC Corporation had discovered that the depreciation expense in the years…

A: Depreciation expense refers to the depreciation amount, that is, the amount of cost of assets that…

Q: The accounting profit before tax of Lindfield Ltd for the year ended 30 June 2022 was $150,000,…

A: The current tax liability seems to be the expected sum of tax or incurred tax obligation on earnings…

Q: n 2016, Waterford Corporation reported pretax financial income of $400,000. Included in that pretax…

A: Solution- Income for the purposes of tax = 400,000- 150,000+120,000+10,000 = 380,000*30% = 114,000

Q: EL Co. reported net income for the current year 2021 at ₱560,000 before provision of income tax…

A: Particulars Amount Accounting income per book  P560000 Permanent differences :…

Q: At the end of 2017 Buckeyes industries had a deferred tax asset account with a balance of $28…

A: Solution 1: Buckeyes industries Journal Entries Event Particulars Debit (In Million) Credit…

Q: Wynn Farms reported a net operating loss of $180,000 for financial reporting and tax purposes in…

A: 1. Net Operating loss carryback Amount Rate of Tax Tax Recorded as Carried back - 2017 $0 30%…

Q: At the end of 2015, Payne Industries had a deferred tax asset account with a balance of $30 million…

A: Valuation Allowance:  Valuation allowance is that financial item that offsets the deferred tax…

Q: The pretax financial income (or Loss) figures for Limerick co. are as follows: 2017 83,000 2018…

A: Given Information: Tax rate for 2017 = 25% Tax rate for remaining years = 20%

Q: Rowen, Inc. had pre-tax accounting income of $1,672,000 and a tax rate of 40% in 2015, its first…

A: Table showing the taxable summary Particulars GAAP Financial Statement IRS Tax return…

Q: Vasquez Corp.'s 2017 income statement showed pretax accounting income of $2,040,000. To compute the…

A: Formula: Taxable amount = Adjusted Accounting income x Corporate income tax rate

Q: For the year ended December 31, 2006, Grim Company's pretax financial income was P2,000,000 and its…

A: The total income tax provision need to be reported in the following two components  1) current…

Q: 29. For the year 2016, Sawi Ak Co. reported an income tax expense of P110,000. Income tax payable at…

A: solution given Income tax expense for 2016 P 110,000 Income tax payable , beginning of…

Q: At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $30 million…

A: Given information is: Deferred tax asset balance at the end of 2017= $30 million Temporary book tax…

Q: Scott Corp. received cash of $20,000 that was included in revenues in its 2016 financial statements,…

A: Deferred tax liability: Deferred tax liability is created, if the tax obligation (income tax…

Q: During 2018, its first year of operations, Baginski Steel Corporation reported a net operating loss…

A: Requirement 1:   Compute the amount of tax payable.

Q: During 2016, its first year of operations, Baginski Steel Corporation reported a net operating loss…

A: Net Operating Loss Carryforward The net operating loss is considered as negative taxable income.…

Q: NSync Manufacturing has a deferred tax asset account with a balance of P300,000 at the end of 2015…

A: Cumulative temporary difference = P1,000,000 Tax rate for future years = 35% Deferred tax asset…

Q: Callaway Corp. has a deferred tax asset account with a balance of $150,000 at the end of 2017 due to…

A: (a) Date Account Title and Explanation Debit Credit   Dec, 31 2013 Income tax…

Q: Wynn Farms reported a net operating loss of $128,000 for financial reporting and tax purposes in…

A: Net Operating Loss Net operating loss denotes a situation in which operating expenses exceed net…

Q: Ross Company has been in business for several years, during which time it has been profitable. For…

A: Net Operating loss carryback: Carry back of net operating losses (NOLs) can help provide cash…

Q: Bramble Inc. reports the following incomes (losses) for both book and tax purposes (assume the…

A: Income before tax means the earnings from which the tax is yet to be deducted.

Q: At the beginning of 2016, Norris Company had a deferred tax liability of $6,600, because of the use…

A: Gain on Disposal of Division F : $24000 X 30% = $7200 Retained Earnings : $14,100 x 30% = $4230…

Q: In 2017, Amirante Corporation had pretax financial income of $168,000 and taxable income of…

A: Tax:   A tax is a compulsory charge or a levy imposed upon a taxpayer by a government organization…

Q: Lyons company deducts insurance expense of P84,000 for tax purposes in 2015, but the expense is not…

A:

Q: The pretax financial income (or loss) figures for Martinez Company are as follows. 2012…

A: Income tax expense:  Income tax expense is an expense for the company which is equal to a certain…

Q: Lee Company’s current income taxes payable related toits taxable income for 2017 is $320,000. In…

A: Income Tax Expenses: The expenses which are related to the taxable income of the individuals and…

Q: Ayayai Corporation began operations in 2020 and reported pretax financial income of $230,000 for the…

A: Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes…

Q: The book basis of depreciable assets for Erwin Co. is$900,000, and the tax basis is $700,000 at the…

A:

Q: In 2020, Sandhill Corporation had pretax financial income of $172,000 and taxable income of…

A: Income tax: Income tax is a tax levied on an individual’s income (taxable income). It is a direct…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.