rmn.2 The information that follows pertains to Richards Refrigeration, Incorporated:a. At December 31, 2024, temporary differences existed between the financial statement book values and the tax basesof the following:Buildings and equipment (net of accumulated depreciation)Prepaid insuranceLiability-loss contingencyComplete this question by entering your answers in the tabs below.Required 1CalculationBookValueGeneralJournal$ 1345732Required 2($ in millions)b. No temporary differences existed at the beginning of 2024.c. Pretax accounting income was $207 million and taxable income was $145 million for the year ended December 31,2024. The tax rate is 25%.TaxBasis$ 9700Required:1. Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2024.2. What is the 2024 net income?Future Taxable(Deductible)Amount$ 3757(32)

Income tax payable =Taxable income * tax rateIncome tax expense = Income tax payable + Deferred tax…

a. At December 31, 2024, temporary differences existed between the financial statement book values and the tax bases of the following: Buildings and equipment (net of accumulated depreciation) Prepaid insurance Liability-loss contingency Book Value $134 57 32 ($ in millions) Tax Basis $97 0 0 Future Taxable (Deductible) Amount $37 57 (32) b. No temporary differences existed at the beginning of 2024. c. Pretax accounting income was $207 million and taxable income was $145 million for the year ended December 31, 2024. The tax rate is 25%. Required: 1. Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2024. 2. What is the 2024 net income?

a. At December 31, 2024, temporary differences existed between the financial statement book values and the tax bases of the following: Buildings and equipment (net of accumulated depreciation) Prepaid insurance Liability-loss contingency Book Value $134 57 32 ($ in millions) Tax Basis $97 0 0 Future Taxable (Deductible) Amount $37 57 (32) b. No temporary differences existed at the beginning of 2024. c. Pretax accounting income was $207 million and taxable income was $145 million for the year ended December 31, 2024. The tax rate is 25%. Required: 1. Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2024. 2. What is the 2024 net income?

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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