INTERMEDIATE ACCOUNTING (LCPO)
10th Edition
ISBN: 9781264473441
Author: SPICELAND
Publisher: MCG
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For the tax year 2021-22, what is the deadline to file a self-assessment tax return if submitted manually?
31 January 2022
31 January 2023
31 October 2022
6th April 2023
Skysong Corp. sold an investment on an installment basis. The total gain of $74,400 was reported for financial reporting purposes in
the period of sale. The company qualifies to use the installment-sales method for tax purposes. The installment period is 3 years;
one-third of the sale price is collected in the period of sale. The tax rate was 40% in 2020, and 20% in 2021 and 2022. The 20% tax
rate was not enacted in law until 2021. The accounting and tax data for the 3 years is shown below.
Financial Accounting
Tax Return
2020 (40% tax rate).
Income before temporary difference
$86,800
$86,800
Temporary difference
74,400
24,800
Income
$161,200
$111,600
2021 (20% tax rate)
Income before temporary difference
$86,800
$86,800
Temporary difference
24,800
Income
$86,800
$111,600
2022 (20% tax rate).
Income before temporary difference
$86,800
$86,800
Temporary difference
24,800
Income
$86,800
$111,600
Calculate cumulative temporary differences for years 2020-2022. (Negative amounts using…
Allmond Corporation, organized on January 3, 2021, had pretax accounting income of $30 million and taxable income
of $38 million for the year ended December 31, 2021. The 2021 tax rate is 25%. The only difference between
accounting income and taxable income is estimated product warranty costs. Assume that expected payments and
scheduled tax rates (based on recently enacted tax legislation) are as follows:
2022 $million
25%
2023
25%
million
2
2024
25%
million
2025
20%
million
Required:
1. Determine the amounts necessary to record Allmond's income taxes for 2021 and prepare the appropriate journal
entry.
2. What is Allmond's 2021 net income?
Complete this question by entering your answers in the tabs below.
Required Required Required
1 GJ
1
2
Determine the amounts necessary to record Allmond's income taxes for 2021. (Enter your
answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).
Enter all amounts as positive values.)
Show lessA
($ in
millions)
Tax…
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