1. & 2. Determine the type of accounting change and prepare the appropriate journal entry to record Bronson's income tax expense in 2018 and adjustment, if any, is needed to revise retained earnings as a result of the change.

Q: A company's income statement reported net income of $88,500 during 2019. The income tax return…

A: INTRODUCTION: A tax rate is the percentage of a person's or corporation's income that is taxed. The…

Q: 8. In 2020, Ross Stores had reported a deferred tax asset of $146 million with no valuation…

A: Income tax expense refers to the process of determining the net amount of expense which is computed…

Q: At the end of 2016, Sentry Company reported a deferred tax liability of $6,120 based on an income…

A: SOLUTION- DEFERRED TAX LIABILITY-  IT IS  A TEMPORARY DIFFERENCE REFERS TO THE DIFFERENCE BETWEEN…

Q: Wicks Corporation began operations on January 1, 2016. At the end of 2016, Wicks reported pretax…

A: 1) Event DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 31-Dec-16 Income tax expense Dr…

Q: Western Digital reported $950 million in income before income taxes for 2021, its first year of…

A: Deferred tax liability is the amount of tax to be paid in the future on the temporary taxable…

Q: At December 31, 2025, Sheffield Corporation had a deferred tax liability of $362,100, resulting from…

A: Journal entry is the first stage of accounting process.Journal entry used to record business…

Q: Discord Inc. income tax return shows taxes currently payable for 2020 of $85,000. The company…

A: Deferred tax asset is a non-current asset which shows an advance payment of tax and has a debit…

Q: Shamrock Corporation reported the following income for each of the years indicated. For each year,…

A: What is meant by journal entries? It is the first step to record the financial transactions in the…

Q: CSX Corporation reported the following in its tax footnote to its 2019 financial statements. Use…

A: ROA stands for return on assets. ROA is a ratio that computes the return on total assets. Formula =…

Q: In late 2017 the federal tax rate for subsequent years was decreased from 35% to 21%. How would this…

A: Deferred tax liability: Deferred tax liability is created, if the tax obligation (income tax…

Q: Holmes Corporation has a cumulative temporary difference related to depreciation of $ 580,000 at…

A: When the tax paid (as per the tax code) is less than the tax calculated in the income statement (as…

Q: In its 2021 income statement, Crane Corp. reported depreciation of $3600000 and interest revenue on…

A: Deferred tax liability is the amount of liability that arises on account of differences in items as…

Q: At the beginning of 2025, Whispering Construction Company changed from the cost-recovery method to…

A: A journal entry in accounting is a documentation of a business's financial transaction. It entails…

Q: At the beginning of 2020, Buffalo Construction Company changed from the completed-contract method to…

A: Income as per completed contract method = $60, 000 Tax = $60, 000*20% = $12, 000

Q: Wittco Company reports pretax GAAP income in 2020, its first year of operations, of $180,000.…

A: The deferred tax is a future tax liability or asset, This tax is two types of deferred tax liability…

Q: vanhoe Corporation reported $202000 in revenues in its 2021 financial statements, of which $68,000…

A: SOlution: Deferred income tax liability = Future taxable amount * Tax rate of 2022

Q: Wheaton Inc. reported the following results for its first three years of operations:   2019 Income…

A: After-tax net income (loss) reported for 2020

Q: Oriole Corporation reported the following results for its first three years of operation: 2020…

A: Solution: Income tax benefit from loss carryforward for 2021 = 30,00,000*30% = $900,000

Q: Allmond Corporation, organized on January 3, 2021, had pretax accounting Income of $29 million and…

A: Journal Entry is the primary step to record the transaction in the books of accounts. The net income…

Q: Madhu Corp. receives rent in advance of $100,000 in Year 1. The timing difference is expected to…

A: The accrual method of accounting is used to record income tax that is due. Accordingly, the tax…

Q: Buster Corporation reported $150,000 in revenues in its Year 1 financial statements, of which…

A: We need to determine the transitory differences that exist between the financial accounting income…

Q: In 2018, Ryan Management collected rent revenue for 2019 tenant coccupancy. For financial reporting,…

A: Deferred Tax Deferred tax is an amount that is, computed on the basis of tax liability on the income…

Q: .) Krondor Co. reported book income of $10,359,000 for the year ended first year of operations.…

A: Income tax actual paid and income tax expenses some time differ because of deferred income…

Q: At the end of 2019, Sentry Company reported a deferred tax liability of $12,350 based on an income…

A: Given Information: Deferred tax liability = $12,350 Income tax rate = 26% Changed income tax rate =…

Q: Allmond Corporation, organized on January 3, 2021, had pretax accounting income of $16 million and…

A: Part 1:

Q: Described below are six independent and unrelated situations involving accounting changes. Each…

A: JOURNAL ENTRY-IT IS A BOOK OF PRIMARY ENTRY OR A BOOK OF ORIGINAL ENTRY IN WHICH TRANSACTION ARE…

Q: On December 31, 2023, XYZ Inc. has an account payable of $2,000 for operating expenses incurred…

A: The entity pays taxes on profit and tax liability is dependent upon the taxable income and filing…

Q: Jenkins Corporation had $675,000 of taxable income for 2018 and $575,000 for 2019. What is the…

A: Tax is the mandatory contribution by the taxpayer to the government. The tax is paid as a percentage…

Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $45 million…

A: The temporary difference will create a Deferred tax asset. In the first case Valuation Allowance…

Q: At the beginning of 2021, a company had future deductible amounts of $400,000 and the enacted tax…

A: Future deductable amount = 400000*27% = $108000 Amount that need to be deductable due to change in…

Q: Cullumber Corporation reported the following results for its first three years of operation: 2020…

A: A deferred tax asset represents the overpayment or advance payment of taxes. It is the opposite of a…

Q: At the end of 2019, Sentry Company reported a deferred tax liability of $9,724 based on an income…

A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized…

Q: For many years preceding 2018, Minimis Corporation, a calendar year corporation, had incurred the…

A: AMT has been repealed after the introduction of tax cuts and jobs act (TCJA) of 2017. But those…

Q: A company made $49,000 in installment sales in 2021 and will receive payment from customers in…

A: Pretax accounting income = Taxable income + Installment sales = $472,000 + $49,000 = $521,000

Filing Federal Income Tax Return

A tax is the amount of money paid to the government on the revenue earned by the individual or business organization. It acts as an income for the government and an expense for the individual or business organization. There are different regulations regarding filing an income tax return in other countries.