At the end of 2019, Sentry Company reported a deferred tax liability of $6,120 based on an income tax rate of 30%. On January 2, 2020, Congress changed the income tax rate to 35%. Required: 1. Calculate the amount of the adjustment to Sentry’s 2019 year-end deferred tax liability. 2. Prepare the journal entry to correct Sentry’s deferred tax liability.

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Q: Callen Inc. had accumulated minimum tax credits of $1.37 million from tax years prior to 2018. For…

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Q: Wicks Corporation began operations on January 1, 2016. At the end of 2016, Wicks reported pretax…

A: 1) Event DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 31-Dec-16 Income tax expense Dr…

Q: In 2021, the company accrued wages payable $68,000 and will make the payment in 2022.   Taxable…

A: Adjusted taxable income=Taxable income-Accrued wages=$600,000-$68,000=$532,000

Q: Prepare slater’s income tax journal entry at the end of 2019 and show how the deferred taxes would…

A: When Book profits are higher than Taxable profits then the difference tax amount shall be treated as…

Q: At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000…

A: a. Determine the taxable income and income tax payable for the year to 30 June 2020.

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A: (a) Required journal entry:

Q: BL Co. reported a deferred tax liability of $15M for the year ended December 31, 2020, related to a…

A: (1) Retained earnings represent the earnings of the company that has been earned due to the business…

Q: GYV Ltd has the following deffered tax balances as at 30 June 2019 DTA        $900000 DTL.…

A: Calculation of Deferred Tax Asset: DTA = ( 900000 / 20 % )          = 4500000          = 4500000 x 5…

Q: At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000…

A:

Q: At the end of 2019, Vaughn Company has $181,600 of cumulative temporary differences that will result…

A: Year Amount Tax rate Amount 2020 $60,500 30% 18,150.00 2021 50,200 30% 15,060.00 2022…

Q: At the end of 2019, Sentry Company reported a deferred tax liability of $6,120 based on an income…

A: Income tax: Income tax is a tax levied on an individual’s income (taxable income). It is a direct…

Q: Callaway Corp. has a deferred tax asset account with a balance of $112,500 at the end of 2020 due to…

A:

Q: During 2019, Holmes Co. reports pretax financial income at $762,300 and a taxable income of…

A: Pretax financial income- It is that income of the entity which it earns after deducting all the…

Q: Headland Corporation began operations in 2020 and reported pretax financial income of $226,000 for…

A: Deferred tax liability arises when Book profit is higher than the taxable profit. In the given…

Q: Prepare Wilcox’s income tax journal entry at the end of 2019. 2. Prepare the lower portion of…

A: ANSWER : Tax payable = 2950 * 30% = 885 Tax expense = 3000 * 30% = 900 1) Journal entry: Dr…

Q: At the end of 2019, Lucretia McEvil Company has $180,000 of cumulative temporary differences that…

A: a.    Prepare the journal entry for McEvil to record income taxes payable, deferred income taxes,…

Q: Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid…

A: Income tax payable = Taxable income x tax rate = $75,000,000*25% = $18,750,000 Deferred tax asset =…

Q: Prepare Wicks’s income tax journal entry at the end of 2019. Assume a valuation allowance is not…

A: The taxable income of WC at the end of 2019 is $52,830. Its before tax financial income at the end…

Q: At the end of 2019, Sentry Company reported a deferred tax liability of $12,350 based on an income…

A: Given Information: Deferred tax liability = $12,350 Income tax rate = 26% Changed income tax rate =…

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Q: Rich Goma Corporation failed to file its income tax return for the fiscal year ending August 31,…

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Q: Anchor, inc, reports pretax financial income of $100,000 for 2020, S120,000 for 2021, and for 2022.…

A: Determination of taxable income    2020 2021 2022 Pretax Financial income $100,000 $120,000…

Q: d of 2019, its first year of operations, Beattie Company reported taxable income of $40,000 and…

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Q: Prepare Beattie’s income tax journal entry at the end of 2019. 2. Prepare the lower portion of…

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Q: At December 31, 2020, Appaloosa Corporation had a deferred tax liability of $25,000. At December 31,…

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Q: Thiel Company reports the following deferred tax items at the end of 2019: Deferred Tax Item #…

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Q: At the end of 2019, Keil Company reports a pretax operating loss of $80,500 for both financial…

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Q: SHM Corporation establishes a P90million liability at the end of 2019 for the estimated litigation…

A: (a) Determine the deferred taxes to be reported at the end of 2019 Litigation Settlement provision…

Q: During 2019 Lian Company became involved in a tax dispute with the BIR.  At December 31, 2019,…

A: Note: Provision for litigation should be made for the amount for which chances of paying are…

Q: Oriole Company deducts insurance expense of $183000 for tax purposes in 2021, but the expense is not…

A: Concept: Deferred Tax Liability When Income Tax Expense is more than Income Tax Liability,when…

Q: At the beginning of 2019, Norris Company l1ad a deferred tax liability of $6,400, because of the use…

A: Comment-Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: equired: 1. Prepare Wicks’s income tax journal entry at the end of 2019. Assume a valuation…

A: Income tax: A fee charged by the government of the country on the taxable income earned by the…

Q: During 2020, Sheffield Co.'s first year of operations, the company reports pretax financial income…

A: Deferred tax asset: A Deferred Tax Asset is an asset on a Company's balance sheet that may be used…

Q: At the beginning of 2021, a company had future deductible amounts of $400,000 and the enacted tax…

A: Future deductable amount = 400000*27% = $108000 Amount that need to be deductable due to change in…

Q: Keira's Kites Inc. reported a deferred tax liability of $40,000 at the beginning of 2020. At the end…

A: (a) Calculate income tax payable for 2020.

Q: Rich Goma Corporation failed to file its income tax return for the fiscal year ending August 31,…

A: In Philippines interest for late filing of income tax return is levy at 12% per year from the date…

Q: Indicate the date that the statute of limitations would run out on each of the following 2018…

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Q: Force Corporation has one temporary difference at the end of 2020 that will reverse and cause…

A: A journal entry is the first step—and an essential function—of the accounting process. Journal…

Q: South Carolina Corporation has one temporary difference at the end of 2020 that will reverse and…

A: a.Compute taxable income and income taxes payable for 2020.

Q: At December 31, 2018 AP Corporation had a deferred tax liability of P250, 000. At December 31, 2019,…

A: Income tax expense is the obligation for the tax payers to pay the tax to the government authorities…

Q: Addison Co. has one temporary difference at the beginning of 2020 of $500,000. The deferred tax…

A: Calculate deferred tax liability.

Q: In 2021, Ryan Management collected rent revenue for 2022 tenant occupancy. For financial reporting,…

A: Deferred tax is an amount that is, computed on the basis of tax liability on the income as per…

Q: Jennings Inc. reported the following pretax income (loss) and related tax rates during the years…

A: Journal entries are the foundation of bookkeeping that helps in building a base for the preparation…

Q: Crane Corporation has one temporary difference at the end of 2020 that will reverse and cause…

A: Solution: Taxable income = Pretax income - Taxable temporary differences = $285,200 - ($56,200 +…

Q: Wicks Corporation began operations on January 1, 2019. At the end of 2019, Wicks reported pretax…

A: Journal entry is a record of financial transaction in the books of accounts of a business. It…

Q: The Jets company recorded a deffered tax liability in the amount of $18,750 on December 2020 due to…

A: The deferred tax liability of $18,750 has been computed by multiplying the difference of the book…

Q: At the end of 2019, its first year of operations, Beattie Company reported taxable income of $39,000…

A: Journal entries are prepared to record the financial and non-financial transactions of the business…

Filing Federal Income Tax Return

A tax is the amount of money paid to the government on the revenue earned by the individual or business organization. It acts as an income for the government and an expense for the individual or business organization. There are different regulations regarding filing an income tax return in other countries.