The following facts relate to Kingbird Corporation. 1. Deferred tax liability, January 1, 2020, $48,000. Deferred tax asset, January 1, 2020, $0. Taxable income for 2020, $114,000. Pretax financial income for 2020, $120,000. Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $288,000. 6. Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $42.000. Tax rate for all years, 20%. 7. The company is expected to operate profitably in the future. 2. 3. 4. 5. 8. (a) Compute income taxes payable for 2020. Income taxes payable

The following facts relate to Kingbird Corporation. 1. Deferred tax liability, January 1, 2020, $48,000. Deferred tax asset, January 1, 2020, $0. Taxable income for 2020, $114,000. Pretax financial income for 2020, $120,000. Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $288,000. 6. Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $42.000. Tax rate for all years, 20%. 7. The company is expected to operate profitably in the future. 2. 3. 4. 5. 8. (a) Compute income taxes payable for 2020. Income taxes payable

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 56P

See similar textbooks

Similar questions

Incomc Taxes Then Company has been in operation for several years. It has both a deductible and a taxable temporary difference. At the beginning of 2019, its deferred tax asset was 690, and its deferred tax liability was 750. The company expects its lutine deductible amount to be deductible in 2020 and its Inline taxable amount to 1 taxable in 2021. In 2018, Congress enacted income tax rates for future years as follows: 2019, 30%; 2020, 34%; and 2021, 35%. At the end of 2019, Then reported income taxes payable of 25,800, an increase in its deferred tax liability of 300, and an ending balance in its deferred tax asset of 860. Thun has prepared the following schedule of items related to its income taxes for 2019. Required: Fill in the blanks in the preceding schedule. Show your calculations.
Tayla Corporation generated $400,000 of taxable income in the 2019. What is Tayla's corporate tax liability? $71,400 $84,000 $115,600 $0 None of the above
Quince Corporation has taxable income of $485,000 for its calendar tax year. Calculate the corporation's income tax liability for 2019 before tax credits. $________________
Prior to and during 2019, Shadrach Company reported tax depreciation at an amount higher than the amount of financial depreciation, resulting in a book value of the depreciable assets of 24,500 for financial reporting purposes and of 20,000 for tax purposes at the end of 2019. In addition, Shadrach recognized a 3,500 estimated liability for legal expenses in the financial statements during 2019; it expects to pay this liability (and deduct it for tax purposes) in 2023. The current tax rate is 30%, no change in the tax rate has been enacted, and the company expects to be profitable in future years. What is the amount of the net deferred tax liability at the end of 2019? a. 300 b. 450 c. 1,050 d. 1,350
LO.2 Osprey Corporation, an accrual basis taxpayer, had taxable income for 2019 and paid 40,000 on its estimated state income tax for the year. During 2019, the company received a 4,000 refund upon filing its 2018 state income tax return. The company filed its 2019 state income tax return in August 2020 and paid the 7,000 state income tax due for 2019. In December 2019, the company received a notice from the state tax commission that an additional 6,000 of income tax was due for 2017 because of an error on the return. The company acknowledged the error in December 2019 and paid the additional 6,000 in tax in February 2020. What is Ospreys 2019 Federal income tax deduction for state income taxes?