Comprehensive At the beginning of 2019, Norris Company had a deferred tax liability of $6,400, because of the use of MACRS depreciation for income tax purposes and units-of-production depreciation for financial reporting. The income tax rate is 30% for 2018 and 2019, but in 2018 Congress enacted a 40% tax rate for 2020 and future years.
Morris’s accounting records show the following pretax items of financial income for 2019: income from continuing operations, $120,000 (revenues of $352.000 and expenses of $232,000); gain on disposal of Division F, $23,000; loss from operations of discontinued Division F, $10,000; and prior period adjustment, $15,000, due to an error that understated revenue in 2018. All of these items are taxable; however, financial depreciation for 2019 on assets related to continuing operations exceeds tax depreciation by $5,000. Norris had a retained earnings balance of $161,000 on January 1, 2019, and declared and paid cash dividends of $32,000 during 2019.
Required:
Corporate Financial Accounting
Financial Accounting
Financial & Managerial Accounting
Accounting Information Systems
College Accounting, Chapters 1-27
Managerial Accounting: The Cornerstone of Business Decision-Making
Financial And Managerial Accounting
Essentials of Business Communication (MindTap Course List)
Essentials of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Foundations of Business (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
Fundamentals of Financial Management (MindTap Course List)
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Management, Loose-Leaf Version
Contemporary Marketing
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
MKTG 12:STUDENT ED.-TEXT
Accounting Information Systems
Financial & Managerial Accounting
Financial Accounting
Accounting (Text Only)
College Accounting (Book Only): A Career Approach
Exploring Economics
Statistics for Business & Economics, Revised (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
College Accounting (Book Only): A Career Approach
Principles of Macroeconomics (MindTap Course List)
Pkg Acc Infor Systems MS VISIO CD
Fundamentals of Financial Management (MindTap Course List)
Corporate Financial Accounting
Survey of Accounting (Accounting I)
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Economics For Today
Economics (MindTap Course List)
Cornerstones of Cost Management (Cornerstones Series)
Macroeconomics
Practical Management Science
Purchasing and Supply Chain Management
Microeconomics
Managerial Accounting
Cornerstones of Financial Accounting
MACROECONOMICS FOR TODAY
Microeconomics: Private and Public Choice (MindTap Course List)
Macroeconomics: Private and Public Choice (MindTap Course List)
Micro Economics For Today
Principles of Microeconomics
Economics: Private and Public Choice (MindTap Course List)
Understanding Management (MindTap Course List)