000,000 Temporary differences between financial income and taxable in the income tax return for the first year of operations. The enacted income tax rate is 30% for the current and future Stabilizer Company years. Temporary differences between financial income and ten income for the year are: Tax depreciation in excess of book depreciation Accrual for product liability claim in excess of actual claim 800,000 1,200,000 Reported installment sales income in excess of taxable installment sales income 2,600,000 What is the deferred tax asset at vear-end?

000,000 Temporary differences between financial income and taxable in the income tax return for the first year of operations. The enacted income tax rate is 30% for the current and future Stabilizer Company years. Temporary differences between financial income and ten income for the year are: Tax depreciation in excess of book depreciation Accrual for product liability claim in excess of actual claim 800,000 1,200,000 Reported installment sales income in excess of taxable installment sales income 2,600,000 What is the deferred tax asset at vear-end?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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INCOME TAXES SURVIVE Company reported net income for the current year 2020 before taxes is P3,511,000. The following differences were noted between the financial reporting and tax reporting: Financial Tax Interest on depository accounts P 53,000 Warranty expense 260,000 P 115,000 Revenue from installment sales 584,000 319,000 Advance collections from customers 75,000 Provision for probable losses 406,000 Insurance premiums on senior managers' life insurance 120,000 The income tax rate is 30% and is not expected to change in the future. Estimated tax payments for the last three quarters amounted to P850,000. . 1. At what amount should income tax expense be reflected in the income statement ending December 31, 2020?
Find the total income tax expense for 20x6.
A company has income before income taxes of $879,000 for the current year. The current provision for income taxes is $140,000, and the provision for deferred income taxes is $50,000. Which amount should be recorded as this company's net income for the year? O $689,000 O $739,000 $829,000 $879,000
vn.2 At the end of the year, the deferred tax asset account had a balance of $8 million attributable to a temporary difference of $32 million in a liability for estimated expenses. Taxable income is $88 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%.Prepare the journal entry(s) to record income taxes, assuming it is more likely than not that three-fourths of the deferred tax asset will not ultimately be realized.
Calculating Deferred Tax Balance Evergreen Company's reconciliation between pretax GAAP income and taxable income follows for the year. Pretax GAAP income $240,000 Depreciation adjustment (48,000) Permanent difference 1,500 Taxable income $193,500 The company had one temporary difference due to the GAAP basis of equipment exceeding the tax basis of equipment. Record the income tax journal entry for the year, assuming a tax rate of 25%. Assume that the January 1 deferred tax liability balance was $6,000. • Note: Round amounts to the nearest whole dollar. Account Name Date Dec. 31 Income Tax Expense Deferred Tax Liability Income Tax Payable To record income tax expense. Dr. 0 0 0 Cr. 0x 11,625 x 48,375
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4. The following information is for Z Corp's first year of operations. Amounts are in millions of dollars. The enacted tax rate is 25%. Accounting income Temporary differences: Rental Income Depreciation Expense Permanent Difference: Taxable income Year 2021 $80 6 -12 2 $76 Future Taxable Amounts 2022 2023 88 75 0 -4 $4 $3 2024 2025 63 58 Future Amount Total -1 -1 -6 $3 $2 $ 12 Required: Prepare the journal entries to record the income tax expense for each year. (show the computing process and precise journal entries)
Tax Drill- ASC 740 Ovate, Inc., earns $140,000 in book Income before tax and is subject to a 21% Federal income tax rate. Ovate records a single temporary difference. Warranty expenses deducted for book purposes are $8,000 of which only $2,000 are deductible for tax purposes. Ovate has a deferred tax asset of
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Information relating to Waukegan Company for the current year is as follows: Income from continuing operations before tax $ 140,000 Income from discontinued operations (pretax) 40,000 What is the amount of the income tax expense that should be allocated to the income from discontinued operations? (Assume the effective tax rate is 25%) income tax expense