The following information is available for Marigold Corporation for 2020. 1 2. 3. A 4. 5. 6. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $114,000. This difference will reverse in equal amounts of $28,500 over the years 2021-2024. Interest received on municipal bonds was $10,200. Rent collected in advance on January 1, 2020, totaled $61,800 for a 3-year period. Of this amount, $41.200 was reported as unearned at December 31, 2020, for book purposes. The tax rates are 40% for 2020 and 35% for 2021 and subsequent years. Income taxes of $308,000 are due per the tax return for 2020. No deferred taxes existed at the beginning of 2020.

The following information is available for Marigold Corporation for 2020. 1 2. 3. A 4. 5. 6. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $114,000. This difference will reverse in equal amounts of $28,500 over the years 2021-2024. Interest received on municipal bonds was $10,200. Rent collected in advance on January 1, 2020, totaled $61,800 for a 3-year period. Of this amount, $41.200 was reported as unearned at December 31, 2020, for book purposes. The tax rates are 40% for 2020 and 35% for 2021 and subsequent years. Income taxes of $308,000 are due per the tax return for 2020. No deferred taxes existed at the beginning of 2020.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 47P

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