PRINCIPLES OF TAXATION F/BUS...(LL)
23rd Edition
ISBN: 9781260433197
Author: Jones
Publisher: MCG
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Chapter 11, Problem 5IRP
To determine
Identify the tax issues and state the issues in the form of a question.
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Lindemax Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. (Assume the carryback provision is used for a net operating loss.)
The tax rates listed were all enacted by the beginning of 2018.
Instructions
a) Prepare the journal entries for the years 2018-2021 to record income tax expense (benefit) and income tax payable (refundable) and the tax effects of the loss carryback and carryforward, assuming that the end of 2020 it is probable that the benefits of the loss carryforward will be realized in the future.
CC corporation (a calendar-year C corporation) has a net operating loss (NOL) carryover to 2021 in the amount of $30,000. How much tax will SCC pay for 2021 if it reports taxable income from operations of $20,000 before considering loss carryovers under the following assumptions? (Leave no answer blank. Enter zero if applicable.)
a. The NOL originated in 2017.
SCC Taxable Income in 2021
b. The NOL originated in 2018.
SCC Tax in 2021
Bramble Corp. had a Deferred Tax Asset account with a balance of $100,200 at the end of 2019 due to a single temporary
difference of $334,000 related to warranty liability accruals. At the end of 2020, this same temporary difference has increased to
$368,500. Taxable income for 2020 is $919,000. The tax rate is 30% for all years.
Assuming that it is more likely than not that $29,500 of the deferred tax asset will not be realized, prepare the journal entries to
record income taxes for 2020. Bramble uses a valuation allowance account. (Credit account titles are automatically indented when
the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the
amounts.)
Year Account Titles and Explanation
Debit
Credit
2020
(To record current tax expense)
2020
(To record deferred tax benefit)
2020
(To bring the deferred tax assets
account to its realizable value)
Chapter 11 Solutions
PRINCIPLES OF TAXATION F/BUS...(LL)
Ch. 11 - Prob. 1QPDCh. 11 - Prob. 2QPDCh. 11 - Prob. 3QPDCh. 11 - Prob. 4QPDCh. 11 - Prob. 5QPDCh. 11 - Libretto Corporation owns a national chain of...Ch. 11 - Prob. 7QPDCh. 11 - Prob. 8QPDCh. 11 - Prob. 9QPDCh. 11 - In your own words, explain the conclusion that...
Ch. 11 - Prob. 1APCh. 11 - Prob. 2APCh. 11 - Corporation P owns 93 percent of the outstanding...Ch. 11 - This year, Napa Corporation received the following...Ch. 11 - This year, GHJ Inc. received the following...Ch. 11 - In its first year, Camco Inc. generated a 92,000...Ch. 11 - Prob. 7APCh. 11 - Prob. 8APCh. 11 - Cranberry Corporation has 3,240,000 of current...Ch. 11 - Hallick Inc. has a fiscal year ending June 30....Ch. 11 - Landover Corporation is looking for a larger...Ch. 11 - Cramer Corporation, a calendar year, accrual basis...Ch. 11 - Prob. 13APCh. 11 - Prob. 14APCh. 11 - Prob. 15APCh. 11 - Prob. 16APCh. 11 - In each of the following cases, compute the...Ch. 11 - Prob. 18APCh. 11 - Prob. 19APCh. 11 - Jackson Corporation has accumulated minimum tax...Ch. 11 - Camden Corporation, a calendar year accrual basis...Ch. 11 - Callen Inc. has accumulated minimum tax credits of...Ch. 11 - Prob. 23APCh. 11 - Prob. 24APCh. 11 - In 2018, NB Inc.s federal taxable income was...Ch. 11 - James, who is in the 35 percent marginal tax...Ch. 11 - Leona, whose marginal tax rate on ordinary income...Ch. 11 - Prob. 28APCh. 11 - Prob. 29APCh. 11 - Prob. 30APCh. 11 - Prob. 1IRPCh. 11 - Prob. 2IRPCh. 11 - Prob. 3IRPCh. 11 - Prob. 4IRPCh. 11 - Prob. 5IRPCh. 11 - Prob. 6IRPCh. 11 - Prob. 7IRPCh. 11 - Prob. 8IRPCh. 11 - Prob. 1RPCh. 11 - Prob. 2RPCh. 11 - Prob. 3RPCh. 11 - This year, Prewer Inc. received a 160,000 dividend...Ch. 11 - Prob. 1TPCCh. 11 - Prob. 2TPC
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