hw18 part 1

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Problem 15-58 (LO 15-6) In each of the following independent cases for tax year 2022, determine the amount of business interest expense deduction and disallowed interest expense carryforward, if any. Assume that average annual gross receipts exceed $27 million. Required: a. Company A has ATI of $70,000 and business interest expense of $20,000. b. Company B has ATI of $90,000, business interest expense of $50,000, and business interest income of $2,000. c. Company C has taxable income of $50,000 which includes business interest expense of $90,000 and depreciation of $20,000. Note: For all requirements, leave no cells blank - be certain to enter "0" wherever required. Enter your answers in dollar values not in million of dollars. a. Company A b. Company B c. Company C Interest expense deduction Disallowed interest expense carryforward

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BE18.2 (LO 1) Oxford Corporation began operations in 2025 and reported pretax financial income of $225,000 for the year. Oxford’s tax depreciation exceeded its book depreciation by $40,000. Oxford’s tax rate for 2025 and years thereafter is 30%. In its December 31, 2025, balance sheet, what amount of deferred tax liability should be reported? BE18.3 (LO 1, 2) Using the information from BE18.2, assume this is the only difference between Oxford’s pretax financial income and taxable income. Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes payable, and show how the deferred tax liability will be classified on the December 31, 2025, balance sheet.

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Problem 5 (Accounting for Income Tax) Zeus Company reported pretax financial income of P3,000,000 for the year ended December 31, 2020. The taxable income was P4,000,000. The difference is due to rental received in advance. Rental income is taxable when received. The income tax rate is 30% and Zeus Company made estimated tax payment of P500,000 during the current year. Questions: 1. How much is the current tax expense in 2020? 2. How much is the total tax expense in 2020? 3. How much deferred tax asset or deferred tax liability should be presented in 2020 (Note: Indicate if DTA or DTL)?

The pretax financial income (or loss) figures for Windsor Company are as follows. 2022 $82,000 2023 (45,000) 2024 (40,000) 2025 123,000 2026 97,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 20% tax rate for all years. Prepare the journal entries for the years 2022 to 2026 to record income tax expense and the effects of the net operating loss carryforwards. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.) (List all debit entries before credit entries. 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 titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Account Titles and Explanation Debit 2022 2023 2024 2025 2026 Credit

Item 4 During 2021, its first year of operations, Baginski Steel Corporation reported a net operating loss of $408,000 for financial reporting and tax purposes. The enacted tax rate is 25%. Required:1. Prepare the journal entry to recognize the income tax benefit of the net operating loss. Assume the weight of available evidence suggests that future taxable income will be sufficient to benefit from future deductible amounts arising from the net operating loss carryforward.2. Show the lower portion of the 2021 income statement that reports the income tax benefit of the net operating loss.

Immediate Accounting ll Ch 16   3. During 2024, its first year of operations, Baginski Steel Corporation reported a net operating loss of $360,000 for financial reporting and tax purposes. The enacted tax rate is 25%. Required: Prepare the journal entry to recognize the income tax benefit of the net operating loss. Assume the weight of available evidence suggests that future taxable income will be sufficient to benefit from future deductible amounts arising from the net operating loss carryforward. Show the lower portion of the 2024 income statement that reports the income tax benefit of the net operating loss.   Required 1 Record 2024 income tax benefit from operating loss Transaction                           General Journal Debit Credit 1

Pretax financial statement income for the year ended December 31, 2024 was $180 million for Wilton Company. Wilton's taxable income was $120 million. This was a result of differences between depreciation for financial reporting purposes and tax purposes. The enacted tax rate is 20% for 2024 and 25% thereafter. What amount should Wilton report as the current portion of income tax expense for 2024? $45 million $24 million $30 million $36 million

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Question 1At 30 June 2019, Beta Ltd had the following deferred tax balances:Deferred tax liability $18,000Deferred tax asset 15,000Beta Ltd recorded a profit before tax of $80,000 for the year to 30 June 2020, which included thefollowing items:Depreciation expense – plant $7,000Doubtful debts expense 3,000Long-service leave expense 4,000For taxation purposes the following amounts are allowable deductions for the year to 30 June 2020:Tax depreciation – plant $8,000Bad debts written off 2,000Depreciation ratesfor taxation purposes are higher than for accounting purposes. A corporate tax rateof 30% applies.Required:a) Determine the taxable income and income tax payable for the year to 30 June 2020. b) Determine by what amount the balances of the deferred liability and deferred tax asset will increase or decrease for the year to 30 June 2020 because of depreciation, doubtful debts and long-service leave. c) Prepare the necessary journal entries to account for income tax assuming…

4... 4 Sunland Company has the following two temporary differences between its income tax expense and income taxes payable.     2020   2021   2022 Pretax financial income   $842,000     $956,000     $914,000   Excess depreciation expense on tax return   (28,800 )   (39,300 )   (9,900 ) Excess warranty expense in financial income   20,400     9,500     7,600   Taxable income   $833,600     $926,200     $911,700   The income tax rate for all years is 20%. (a)     Assuming there were no temporary differences prior to 2020, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020, 2021, and 2022. (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 titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit 2020…

4 continue.... Sunland Company has the following two temporary differences between its income tax expense and income taxes payable.     2020   2021   2022 Pretax financial income   $842,000     $956,000     $914,000   Excess depreciation expense on tax return   (28,800 )   (39,300 )   (9,900 ) Excess warranty expense in financial income   20,400     9,500     7,600   Taxable income   $833,600     $926,200     $911,700   The income tax rate for all years is 20%. (b)     Indicate how deferred taxes will be reported on the 2022 balance sheet. Sunland’s product warranty is for 12 months. Sunland CompanyBalance Sheet (Partial)                                                                                                                                                                      $          Save for Later     Attempts: 0 of 1 used Submit Answer     (c) The parts of this…

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Accounting 3230 Spring 2024 Chapter 18: In - Class Handout #1 (Accounting for income taxes) Ledecky, Inc. began 2017 with the following balances in deferred tax accounts: Deferred Tax Assets DTA Valuation Allowance Deferred Tax Liabilities $ 245,000 (DR) $30,000(CR) $210,000(CR) The deferred tax asset resulted from $ 700, 000 of unearned revenue that was received in 2016, but will be earned for financial reporting purposes evenly across the next three years, and 2019

Exercise 19.8 (Two Temporary Differences, One rate, 3 years). Button Company has the following two temporary differences between its income tax expense and income taxes payable.     2020 2021 2022 Pretax Financial Income $840,000 $910,000 $945,000 Excess Depreciation Expense on tax Return (30,000) (40,000) (10,000) Excess Warranty Expense in Financial Income 20,000 10,000 8,000 Taxable Income $830,000 $880,000 $943,000   The income tax rate is 20% for all years.   Instructions:   a) Assuming there were no temporary differences prior to 2020, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020,2021, and 2022.   b) Indicate how deferred taxes will be reported on the 2022 balance sheet. Button’s product warranty is for 12 months.       Deferred tax asset ( $ 0 + $ 0 + $ 0 )..............................$ 0       Deferred tax liability ( $ 0 + $ 0 + $ 0…

Provide answer this financial accounting question