FINANCIAL ACCOUNTING 9TH
16th Edition
ISBN: 9781308821672
Author: Libby
Publisher: MCG/CREATE
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Chapter S, Problem 8E
To determine
Explain whether Company TB would report a long-term net
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Bridgeton Company started its operations at the beginning of 2018. The following information relates to its operations for the year.
The differences between the 2018 income statement and tax return are listed below:
1. Fines incurred for pollution violations of $7,320 were deducted in computing pretax financial income.2. Warranty expense accrued for financial reporting purposes amounts to $15,910.Warranty deductions per the tax return amount to $8,730.3. Interest revenue earned on an investment in tax-exempt bonds amounts to $2,570.4. Depreciation of property, plant and equipment for financial reporting purposes amounts to $80,500. Depreciation of these assets amounts to $102,000 for the tax return.5. Income on construction contracts using the percentage of completion method per books amounts to $99,000. Income on contracts for tax purposes amounts to $64,300.6. Sales on an accrual basis were $76,890. For tax purposes $60,450 was recorded on the installment sales method.7. Interest…
At December 31, 2013, Control enterprises had the following deferred income tax
items:
Deferred income tax liability of $24 million related to current assets
Deferred income tax asset of $18 million related to a current liability
Deferred income tax liability of $40 million related to noncurrent asset
Deferred income tax asset of $12 million related to a noncurrent liability
Control Enterprises should report in the current section of its December
31, 2013, balance sheet a:
a. Noncurrent asset of $30,000 and a noncurrent liability of $64,000
b. Current asset of $6,000
c. Noncurrent asset of $28,000 and a noncurrent liability of 15,000
d. Noncurrent liability of $10,000
In its first four years of operations Cordelli Resorts reported the following
operating income (loss) amounts:
2010
$300,000
2011
200,000
2012
(850,000)
2013
900,000
There were no other deferred income taxes in any year, Cordelli elected to
carry back its operating loss. The enacted income tax rate was 40%. In its
2013…
XYZ Company reported the following pretax income (loss) and related tax rates
during the years 2016-2021.
Year
Pretax Income (loss)
Таx rate
2016
$75,000
30%
2017
150,000
30%
2018
240,000
40%
2019
(540,000)
48%
2020
210,000
40%
2021
300,000
42%
a. Prepare the journal entries for the years 2019 and 2020 to record income taxes
and the tax effects of the loss. Assume that XYZ elects the carryback provision
where possible and it is probable that it will realize benefits of any loss
carryforward.
b. Prepare the portion of the income statement that presents your answer in part
(a) for the year ended 2019.
Chapter S Solutions
FINANCIAL ACCOUNTING 9TH
Ch. S - Defining a Lessor Which of the following best...Ch. S - Prob. 2MCQCh. S - Prob. 3MCQCh. S - Prob. 4MCQCh. S - Prob. 5MCQCh. S - Prob. 6MCQCh. S - Prob. 1MECh. S - Prob. 2MECh. S - Prob. 3MECh. S - Prob. 4ME
Ch. S - Prob. 1ECh. S - Prob. 2ECh. S - Prob. 3ECh. S - Prob. 4ECh. S - Calculating a Deferred Tax Liability LOS-5 On...Ch. S - Prob. 6ECh. S - Prob. 7ECh. S - Prob. 8ECh. S - Prob. 9ECh. S - Prob. 10ECh. S - Converting Operating Leases to Capital Leases...Ch. S - Converting Operating Leases to Capital Leases...Ch. S - Computing Effective Tax Rates LOS-4 Below is...Ch. S - Prob. 4PCh. S - Prob. 5PCh. S - Prob. 6PCh. S - Analyzing Starbuckss Lease Disclosures The...Ch. S - Analyzing Disneys Income Tax Disclosures The...
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- XYZ Company reported the following pretax income (loss) and related tax rates during the years 2016-2021. Year Pretax Income (loss) Tax rate 2016 $75,000 30% 2017 150,000 30% 2018 240,000 40% 2019 (540,000) 48% 2020 210,000 40% 2021 300,000 42% Prepare the journal entries for the years 2019 and 2020 to record income taxes and the tax effects of the loss. Assume that XYZ elects the carryback provision where possible and it is probable that it will realize benefits of any loss carryforward. Prepare the portion of the income statement that presents your answer in part (a) for the year ended 2019.arrow_forwardPretax financial statement income for the year ended December 31, 2021, was $25 million for Scott Pen Company. Scott's taxable income was $30 million. This was a result of differences between depreciation for financial reporting purposes and tax purposes. The enacted tax rate is 30% for 2021 and 40 % thereafter. What amount should Scott report as the current portion of income tax expense for 2021?arrow_forwardCSX Corporation reported the following in its tax footnote to its 2019 financial statements. Use this information to answer the requirements. $ millions Net income Interest expense, net 737 639 546 Average total assets 37,493 36,234 35,577 Compute (a) return on assets and (b) the adjusted return on assets for each of the three years. Assume a statutory tax rate of 37% for 2017 and 22% for 2018 and 2019. a. Compute return on assets (ROA) for 2017, 2018, and 2019 Note: 1. Select the appropriate numerator and denominator used to compute ROA from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute ROA for each year. Year Numerator Net income 2019 2018 2017 $3,331 $3,309 $5,471 2017 $ 2018 $ 2019 $ 2017 $ 2018 S 2019 $ Denominator + Average total assets ÷ 35,577 5,471 $ 3,309 $ 3,331 $ ÷ b. Compute adjusted return on assets (ROA) for 2017, 2018, and 2019 Note: 1. Select the appropriate numerator and denominator used to compute adjusted ROA from the…arrow_forward
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