The federal tax rate has been 35% number of years. Assume in the third quarter of 2020 new rate of 40% is approved effective January 1, 2020. At the beginning of the year you had deferred tax assets of ten million and deferred tax liability of six million. You estimate the pretax gaap income will be approximately 5 million in 2020 and that the taxable income will be about 7 million. The company is publicly traded with the 500,000 shares outstanding all year. What effect will be tax rate increase have a balance sheet and income statement for the company for the year 2020? Can actions be taken to minimize the effect?

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.

Bandung Corporation began 2020 with a $46,000 balance in the ­Deferred Tax Liability account. At the end of 2020, the related cumulative temporary difference amounts to $350,000, and it will reverse evenly over the next 2 years. Pretax accounting income for 2020 is $525,000, the tax rate for all years is 20%, and taxable income for 2020 is $405,000. Instructions a.    Compute income taxes payable for 2020. b.    Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. c.    Prepare the income tax expense section of the income statement for 2020 beginning with the line “Income before income taxes.”

Kingbird Corporation began 2020 with a $55,200 balance in the Deferred Tax Liability account. At the end of 2020, the related cumulative temporary difference amounts to $420,000, and it will reverse evenly over the next 2 years. Pretax accounting income for 2020 is $630,000, the tax rate for all years is 20%, and taxable income for 2020 is $486,000.     A. Compute income taxes payable for 2020. Income taxes payable   $ B. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) C. Prepare the income tax expense section of the income statement for 2020 beginning with the line “Income before income taxes.”. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Irving, Inc. pays its general manager an annual bonus of 6% of profit after deduction for both bonus and corporate income tax. For the year 2020, the company realized profit of ₱10,800,000 before said deductions. The income tax rate is 30%. What is the corporate income tax liability at December 31, 2020?

Tamarisk Corporation began 2020 with a $50,600 balance in the Deferred Tax Liability account. At the end of 2020, the related cumulative temporary difference amounts to $385,000, and it will reverse evenly over the next 2 years. Pretax accounting income for 2020 is $577,500, the tax rate for all years is 20%, and taxable income for 2020 is $445,500. (a)   Compute income taxes payable for 2020. Income taxes payable   $enter Income taxes payable in dollars     (b)     Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter…

Blossom Corporation began 2020 with a $57,040 balance in the Deferred Tax Liability account. At the end of 2020, the related cumulative temporary difference amounts to $434,000, and it will reverse evenly over the next 2 years. Pretax accounting income for 2020 is $651,000, the tax rate for all years is 20%, and taxable income for 2020 is $502,200.     Compute income taxes payable for 2020. Income taxes payable   $enter Income taxes payable in dollars            Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount…

In 2019, Beta had an annual effective tax rate of 20%. In the 2020 first quarter, the company would pay tax at 25% just for that quarter alone. Beta management estimates that the 2020 full year effective tax rate will be 15%. Based on a first quarter 2020 income before tax of $200,000 what amount of provision for income taxes should be accrued under the integral method.     a. $50,000   b. $40,000   c. $60,000                            d. $0   e. $30,000

Rockland Corporation earned net income of $300,000 in 2020 and had 100,000 shares of common stock outstanding throughout the year. Also outstanding all year was $800,000 of 9% bonds, which are convertible into 16,000 shares of common. Rockland's tax rate is 20%. Compute Rockland's 2020 diluted earnings per share.

For its current tax year, Ilex Corporation has ordinary income of $250,000, a short-term capital loss of $20,000 and a long-term capital gain of $60,000. Calculate Ilex Corporation's tax liability for 2020.$   Prior to 2018, the U.S. corporate tax rate structure had eight tax brackets with progressive marginal tax rates ranging from 15 percent to 39 percent. Starting in 2018, corporations are subject to a flat income tax rate. Corporations are limited in the way that capital losses may be deducted. However, losses may be carried back and carried forward.