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The following facts relate to Crane Corporation. Deferred tax liability, January 1, 2025, $30,600. Deferred tax asset, January 1, 2025, $10,200. Taxable income for 2025,$107,100. Cumulative temporary difference at December 31,2025 , giving rise to future taxable amounts, $234,600. Cumulative temporary difference at December 31,2025 , giving rise to future deductible amounts, $96,900. Tax rate for all years, 20%. No permanent differences exist. The company is expected to operate profitably in the future. (a) Compute the amount of pretax financial income for 2025. Pretax financial income $

The following facts relate to Kingbird Corporation. 1. Deferred tax liability, January 1, 2020, $48,000. Deferred tax asset, January 1, 2020, $0. Taxable income for 2020, $114,000. Pretax financial income for 2020, $120,000. 2. 3. 4. 5. 6. 7. 8. (a) Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $288,000. Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $42.000. Tax rate for all years, 20%. The company is expected to operate profitably in the future. Compute income taxes payable for 2020. Income taxes payable

The following facts relate to Concord Corporation. 1. Deferred tax liability, January 1, 2020, $31,500. 2. Deferred tax asset, January 1, 2020, $10,500. 3. Taxable income for 2020, $110,250. 4. Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $241,500. 5. Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $99,750. 6. Tax rate for all years, 20%. No permanent differences exist. 7. The company is expected to operate profitably in the future. (a) Your answer is correct. Compute the amount of pretax financial income for 2020. Pretax financial income $ 147000 %24

The following facts relate to Cheyenne Corporation. 1.   Deferred tax liability, January 1, 2020, $46,800. 2.   Deferred tax asset, January 1, 2020, $0. 3.   Taxable income for 2020, $111,150. 4.   Pretax financial income for 2020, $117,000. 5.   Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $280,800. 6.   Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $40,950. 7.   Tax rate for all years, 20%. 8.   The company is expected to operate profitably in the future.     Compute income taxes payable for 2020. Income taxes payable   $enter Income taxes payable in dollars        Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account…

The following facts relate to Duncan Corporation. 1.    Deferred tax liability, January 1, 2020, $30,000. 2.    Deferred tax asset, January 1, 2020, $10,000. 3.    Taxable income for 2020, $105,000. 4.    Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $230,000. 5.    Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $95,000. 6.    Tax rate for all years, 20%. No permanent differences exist. 7.    The company is expected to operate profitably in the future. Instructions a.    Compute the amount of pretax financial income for 2020. b.    Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. c.    Prepare the income tax expense section of the income statement for 2020, beginning with the line “Income before income taxes.” d.    Compute the effective tax rate for 2020.

Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: Taxable income Future deductible amounts Future taxable amounts Balance(s) at beginning of the year: Deferred tax asset Deferred tax liability ($ in thousands) Situation 1 2 3 $92 $224 $212 $284 16 20 20 16 16 36 2 11 4 8 2 The enacted tax rate is 25%. Required: For each situation, determine the following: (Enter your answers in thousands rounded to one decimal place (i.e. 1,200 should be entered as 1.2). Negative amounts should be indicated by a minus sign. Leave no cell blank, enter "0" wherever applicable.) Show Transcribed Text a. Income tax payable currently. b. Deferred tax asset-balance. c. Deferred tax asset-change. d. Deferred tax liability-balance. e. Deferred tax liability-change. f. Income tax expense. 2 J Situation 2 3

1. Firm B uses the calendar taxable year and the cash method of accounting. On December 31, 20x6, Firm B made certain cash payments. To what extent can it deduct the payment in 20x6? (Please note: payments for assets to be consumed in the following year are fully deductible in the 12 months or less and is consumed by the end of the following year.) year of payment if the expenditure results in a benefit with a duration of a) $3,000 compensation to a consultant who spent three weeks in January 20x7 analyzing B's internal control system. b) $500,000 to purchase a new piece of commercial real estate. The equipment was delivered on January 8, 20x7 and has a useful life of 40 years. c) $16,900 property tax to the local government for the first six months of 20x7. d) $50,000 for a two-year lease beginning on February 1, 20x7.

Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: Taxable income Future deductible amounts Future taxable amounts Balance(s) at beginning of the year: Deferred tax asset Deferred tax liability. The enacted tax rate is 25%. a. Income tax payable currently. b. Deferred tax asset-ending balance. c. Deferred tax asset-change. d. Deferred tax liability-ending balance. e. Deferred tax liability-change. f. Income tax expense. 1 ¹ 1 2 ³ $132 $264 $292 16 | ($ in thousands) Situation 2 16 2 8 Required: For each situation, determine the following: (Enter your answers in thousands rounded to one decimal place (i.e. 1,200 should be entered as 1.2). Negative amounts should be indicated by a minus sign. Leave no cell blank, enter "0" wherever applicable.) Situation 20 16 3 21 2 4| $404 20 76 4 4

What tax treatment applies to gains and losses on Sec. 1244 stock? OA. Losses on the sale or worthlessness of Sec. 1244 stock are deductible as capital losses that are first netted against capital gains, and allowed as an additional deduction up to $3,000 per year. Gains on the sale of Sec. 1244 stock are treated as capital gains for the year. B. Losses on the sale or worthlessness of Sec. 1244 stock are deductible as ordinary losses up to a maximum of $50,000 per taxable year ($100,000 for married taxpayers filing a joint return). Any excess loss for the year is a capital loss. Gains on the sale of Sec. 1244 stock are capital gains. OC. Losses on the sale or worthlessness of Sec. 1244 stock are deductible as ordinary losses for a maximum of $3,000 per year. Gains on the sale of Sec. 1244 stock are treated as ordinary gains up to a maximum amount for the year. Any excess for the year is allowed as a capital gain. OD. Losses on the sale or worthlessness of Sec. 1244 stock are deductible…

True/False A deferred tax liability represents the increase in taxes payable in future years as a result of taxable temporary differences existing at the end of the current year.

1. Prior to 2022, taxable income and accounting income were identical. 2. Accounting income was $1.7 million in 2022 and $1.46 million in 2023. 3. On January 1, 2022, equipment costing $1.97 million was purchased. It is being depreciated on a straight-line basis over eight years for financial reporting purposes, and is a Class 8-20% asset for tax purposes. Tax-exempt interest income of $70,000 was received in 2023. 4. 5. The tax rate is 30% for all periods. 6. Taxable income is expected in all future years. 7. Sunland had 100,000 common shares outstanding throughout 2023. (a) ง Calculate the amount of capital cost allowance and depreciation expense for 2022 and 2023, and the corresponding carrying amount and undepreciated capital cost of the depreciable assets at the end of 2022 and 2023. Capital Cost Allowance Undepreciated Capital Cost Depreciation Expense Net Book Value

At December 31, 2022, Blossom Corporation had a temporary difference (related to pensions) and reported a related deferred tax asset of $29,100 on its balance sheet. At December 31, 2023, Blossom has five temporary differences. An analysis reveals the following: Future (Taxable) Deductible Amounts emporary Difference 2024 2025 2026 oks; deductible when funded for tax purposes $29,100 $19,100 $10,000 earned for accounting purposes and when received for tax purposes 76,000 accounting purposes and recognized for tax purposes when paid alment sales when sold for book purposes, and as collected for tax purposes 24,000 (36,300) (36,300) (36,300) ting purposes, and CCA for tax purposes (90,300) (50,000) (40,000) $2,500 ($67,200) ($66,300) The enacted tax rate has been 30% for many years. In November 2023, the rate was changed to 28% for all periods after January 1, 2025. Assume that the company has income tax due of $180,000 on the 2023 tax return and that Blossom follows IFRS. (a) Indicate…