The company's income (loss) before income tax provision (benefit) was subject to taxes in the following jurisdictions for the following periods: 20X2 20X1 Domestic $205,000 The provision (benefit) for income taxes is as follows: 20X2 Current tax provision (benefit): United States Deferred tax expense (benefit): United States LSM Student's initials Income tax provision (benefit) Significant components of the Company's deferred tax assets and liabilities as of December 31, 20X2 and 20X1 are as follows: December 31, 20X2 20X1 Deferred tax assets: Bad debt reserve (accounts receivable) 18,000 10,000 Org exp and start up costs Warranty reserve Deferred compensation Capital loss carryforward Total deferred tax assets $18,000 $10,000 Deferred tax liabilities: Fixed assets (property and equipment) Net deferred tax assets $18,000 $10,000 LSM Student's initials A reconciliation of the U.S. income tax rate to the company's effective tax rate is as follows: 20X2 % $ Statutory Rate 35% $350,000 Tax exempt interest Dividends Received Deduction Effective Rate Note: The tax expense reported on the Income Statement in cell C25 should be the same number reported on the Note 21 Income Taxes tab, cells C42 and B19. Complete the Schedule M-1 template tab in the SAM worksheet student.xls and answer the following questions: What was the journal entry to record current tax expense for 20X2? What was the journal entry to record deferred tax expense for 20X2? What is the net DTA/DTL reported on the balance sheet?

The company's income (loss) before income tax provision (benefit) was subject to taxes in the following jurisdictions for the following periods: 20X2 20X1 Domestic $205,000 The provision (benefit) for income taxes is as follows: 20X2 Current tax provision (benefit): United States Deferred tax expense (benefit): United States LSM Student's initials Income tax provision (benefit) Significant components of the Company's deferred tax assets and liabilities as of December 31, 20X2 and 20X1 are as follows: December 31, 20X2 20X1 Deferred tax assets: Bad debt reserve (accounts receivable) 18,000 10,000 Org exp and start up costs Warranty reserve Deferred compensation Capital loss carryforward Total deferred tax assets $18,000 $10,000 Deferred tax liabilities: Fixed assets (property and equipment) Net deferred tax assets $18,000 $10,000 LSM Student's initials A reconciliation of the U.S. income tax rate to the company's effective tax rate is as follows: 20X2 % $ Statutory Rate 35% $350,000 Tax exempt interest Dividends Received Deduction Effective Rate Note: The tax expense reported on the Income Statement in cell C25 should be the same number reported on the Note 21 Income Taxes tab, cells C42 and B19. Complete the Schedule M-1 template tab in the SAM worksheet student.xls and answer the following questions: What was the journal entry to record current tax expense for 20X2? What was the journal entry to record deferred tax expense for 20X2? What is the net DTA/DTL reported on the balance sheet?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter12: Liabilities: Off-balance-sheet Financing, Retirement Benefits, And Income Taxes

Section: Chapter Questions

Problem 33P

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Question

Note 21 Income Taxes

The company's income (loss) before income tax provision (benefit) was subject to
taxes in the following jurisdictions for the following periods:

	20X2	20X1
Domestic		$205,000

The provision (benefit) for income taxes is as follows:


	20X2
Current tax provision (benefit):
United States

Deferred tax expense (benefit):
United States		LSM	Student's initials

Income tax provision (benefit)

Significant components of the Company's deferred tax assets and liabilities as of December 31, 20X2 and 20X1 are as follows:
	December 31,
	20X2	20X1
Deferred tax assets:
Bad debt reserve (accounts receivable)	18,000	10,000
Org exp and start up costs
Warranty reserve
Deferred compensation
Capital loss carryforward
Total deferred tax assets	$18,000	$10,000
Deferred tax liabilities:
Fixed assets (property and equipment)
Net deferred tax assets	$18,000	$10,000	LSM	Student's initials

A reconciliation of the U.S. income tax rate to the company's effective tax rate is as follows:
	20X2
	%	$
Statutory Rate	35%	$350,000

Tax exempt interest
Dividends Received Deduction
Effective Rate

Note: The tax expense reported on the Income Statement in cell C25 should be the same number reported on the Note 21 Income Taxes tab, cells C42 and B19.

Complete the Schedule M-1 template tab in the SAM worksheet student.xls and answer the following questions:

What was the journal entry to record current tax expense for 20X2?

What was the journal entry to record deferred tax expense for 20X2?

What is the net DTA/DTL reported on the balance sheet?

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