INTERMEDIATE ACCOUNTING (ACCT 3200B)
10th Edition
ISBN: 9781307660647
Author: SPICELAND
Publisher: MCG/CREATE
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Question
Chapter 16, Problem 16.8E
To determine
Identify future taxable amounts and future deductible amounts
The amount of difference between the pre-tax accounting income and taxable income, and the difference between the amount of assets and liabilities reported in the financial reports and the amount of assets and liabilities as per the company’s tax records, is referred as temporary difference. Those temporary difference lead to some future taxable amounts or some future deductible amounts.
To identify: Future taxable amounts or future deductible amounts as a consequence of each temporary difference.
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Students have asked these similar questions
Exercise 16-6 (Algo) Temporary difference; income tax payable given [LO16-3]
In 2024, DFS Medical Supply collected rent revenue for 2025 tenant occupancy. For income tax reporting, the rent is taxed when
collected. For financial statement reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period
tenants occupy the rental property. The deferred portion of the rent collected in 2024 amounted to $390,000 at December 31, 2024.
DFS had no temporary differences at the beginning of the year.
Required:
Assuming an income tax rate of 25% and 2024 income tax payable of $940,000, prepare the journal entry to record income taxes for
2024.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
View transaction list
Journal entry worksheet
Problem 16-145
Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced
by temporary differences reported first on:
Income Statement
Tax Return
Revenue Expense Revenue Expense
$21,000
(1.)
(2.)
(3.)
(4.)
$21,000
$15, 200 $21,000
$15, 200 $21, 000
$10, 200
Required:
For each situation, determine the taxable income assuming pretax accounting income is $100,000. (Amounts to be deducted should
be indicated by a minus sign.)
1
2
3
4
Accounting income
Temporary differences:
Income statement first:
Revenue
Expense
Tax return first:
Revenue
Expense
Taxable income
Page 3 of 4
I. TAXABLE OR NON-TAXABLE INCOME
Put a CHECK MARK on the appropriate column.
If the benefit is taxable or has a taxable portion, indicate the taxable amount on the column provided.
If TAXABLE, how much is
the taxable amount FOR
THE YEAR?
BENEFIT
PURELY NON-
TAXABLE
TAXABLE
1. Laundry allowance amounting to P 4,500 a year
2. Uniform allowance amounting to P6,500 a year
3. Gifts given during Christmas amounting to
P8,000.
4. One sack of rice (50 kg) each month. The rice is
valued at P50.00 per kilo.
5. A one-time actual medical assistance amounting
to P 25,000.00 was received during the year.
IV. PROBLEM SOLVING
Solve the following problems.
Write your final answer on the space provided. Present your solution at the back page or attach a separate
sheet if necessary.
ANSWER
QUESTION
Leah sells gadgets. She is given 13% 0omm
1
Chapter 16 Solutions
INTERMEDIATE ACCOUNTING (ACCT 3200B)
Ch. 16 - Prob. 16.1QCh. 16 - A deferred tax liability (or asset) is described...Ch. 16 - Prob. 16.3QCh. 16 - Prob. 16.4QCh. 16 - Temporary differences result in future taxable or...Ch. 16 - Identify three examples of differences with no...Ch. 16 - The income tax rate for Hudson Refinery has been...Ch. 16 - A net operating loss occurs when tax-deductible...Ch. 16 - Prob. 16.10QCh. 16 - Additional disclosures are required pertaining to...
Ch. 16 - Additional disclosures are required pertaining to...Ch. 16 - Prob. 16.13QCh. 16 - Prob. 16.14QCh. 16 - IFRS and U.S. GAAP follow similar approaches to...Ch. 16 - Valuation allowance LO162, LO163 VeriFone Systems...Ch. 16 - Prob. 16.8ECh. 16 - Identify future taxable amounts and future...Ch. 16 - Prob. 16.14ECh. 16 - Identifying income tax deferrals LO161, LO162,...Ch. 16 - Concepts; terminology LO161 through LO168 Listed...Ch. 16 - FASB codification research LO165, LO168, LO1610...Ch. 16 - Prob. 16.1DMPCh. 16 - Prob. 16.2DMPCh. 16 - Prob. 16.9DMP
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