Net income was of solve this question general Accounting A telecommunications company failed to make ayear-end accrual of $300,000 for penalties due to aregulatory violation. Its tax rate is 35%. As a result ofthis error, net income was:a) Unaffected.b) Overstated by $300,000.c) Overstated by $195,000.d) Overstated by $105,000.

Step 1: Define Accrual Accounting and Net Income ImpactAccrual accounting requires that expenses be…

Answered: A telecommunications company failed to…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter14: Choice Of Business Entity—operations And Distributions

Section: Chapter Questions

Problem 38P

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In 20X6, Dalia Corp., a calendar fiscal-year company, discovered that depreciation expense was erroneously overstated $68,000 in both 20X4 and 20X5 for financial reporting purposes. Net income in 20X6 is correct. The tax rate is 35%. The error was made only for financial reporting, affecting depreciation and deferred income tax accounts. CCA had been recorded correctly, and thus there will be no change in taxes payable. Additional information: Z0X6 Beginning retained earnings $456,000 zexs $432,500 Earnings (includes error in 20x5) Dividends declared 85,800 62,500 96,400 72,900 Required: 1. Record the entry in 20X6 to correct the error. (If no entry is required for a transaction/event, select "No Journal entry required" In the first account field.) Answer is not complete. General Journal Debit Credit 136,000 23,800x 112,200x No 1 Date 20X6 Deferred income tax liability Retained earnings, error correction 2. Prepare the comparative retained earnings section of the statement of changes…
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Greenfield Broadcasting failed to make a year end.... Please provide answer the general accounting question
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Pretax accounting income is $206,000. Depreciation for tax is $111,000; depreciation for accounting is $29,000. Bad debt expense for tax is $12,000; bad debt expense for accounting is $9000. A fine for pollution of a river was imposed by the state of Kentucky for $7000. The tax rate is 20%. Which of the following is true? Income tax expense is 206,000 x .2 The current portion is 206,000 x .20 Income tax expense is less than the current portion. Income tax expense is more than the current portion.
Financial Accounting
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A telecommunications company failed to make a year-end accrual of $300,000 for penalties due to a regulatory violation. Its tax rate is 35%. As a result of this error, net income was: a) Unaffected. b) Overstated by $300,000. c) Overstated by $195,000. d) Overstated by $105,000.