-dAlsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six monthsafter services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For taxpurposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2020-2023are as follows:2020202120222023Service RevenueCollections$700,000$660,000790,000818,000750,000756,000742,000760,000Pretax AccountingIncome$226,000300,000268,000240,000There are no differences between accounting income and taxable income other than the temporary difference described above. Theenacted tax rate for each year is 25%.(Hint: You will find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2020-2023.)Required:1. to 3. Prepare the appropriate journal entries to record Alsup's 2021 income taxes, 2022 income taxes and 2023 income taxes. (If noentry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in wholedollars.)

Deferred Tax:The amount of income tax payable in the future due to taxtemporary difference is known…

2020 2021 2022 2023 Service Revenue $700,000 790,000 750,000 756,000 Collections $660,000 Income $226,000 818,000 300,000 742,000 268,000 760,000 240,000 There are no differences between accounting income and taxable inc enacted tax rate for each year is 25%.

2020 2021 2022 2023 Service Revenue $700,000 790,000 750,000 756,000 Collections $660,000 Income $226,000 818,000 300,000 742,000 268,000 760,000 240,000 There are no differences between accounting income and taxable inc enacted tax rate for each year is 25%.

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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人 Use the 2020 Federal Tax Rates for Individuals to calculate the estimated taxes for a taxable income of $22,700. Tax rate 10% 2020 Federal Tax Rates for Individuals Taxable Income Bracket $0 to $9875 12% $9876 to $40,125 22% $40,126 to $85,525 24% $85,526 to $163,300 32% $163,301 to $207,350 35% $207,351 to $518,400 37 % $518,401 or more
Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (Use the U.S tax rate schedule.) Required: a. How much federal tax will he owe? b. What is his average tax rate? c. What is his effective tax rate? d. What is his current marginal tax rate? Complete this question by entering your answers in the tabs below. Req A Req B Choose Numerator Req C What is his average tax rate? (Do not round intermediate calculations. Round total tax to nearest whole dollar amount.) 1 1 Req D Choose Denominator Average Tax Rate 0
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Bb4.
The pretax financial income of Truttman Company differs from its taxable income throughout each of 4 years as follows. Pretax Year Financial Income 2020 2021 2022 2023 $290,000 320,000 350,000 420,000 Taxable Income $180,000 225,000 260,000 560,000 Show Transcribed Text Pretax financial income for each year includes a nondeductible expense of $30,000 (never deductible for tax purposes). The remainder of the difference between pretax financial income and taxable income in each period is due to one depreciation temporary difference. No deferred income taxes existed at the beginning of 2020. 0 Prepare the income statement for 2021, beginning with income before income taxes. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) 0 O Tax Rate 35 % 20 % 20 % 20 % 0 Truttman Company Income Statement (Partial) O C S 000 G SUPPORT
Hd3.
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