Accounting for Income Taxes Dunkin, Inc. reported revenues of $150,000 and expenses of $70,000 in each of its first three years of operations. For tax purposes, Dunkin reported the same expenses to the IRS in each of the years. Dunkin reported taxable revenues of $120,000 in 2020, $160,000 in 2021, and $170,000 in 2022. What is the effect on the accounts of reporting different amounts of revenue for GAAP versus tax?
Accounting for Income Taxes Dunkin, Inc. reported revenues of $150,000 and expenses of $70,000 in each of its first three years of operations. For tax purposes, Dunkin reported the same expenses to the IRS in each of the years. Dunkin reported taxable revenues of $120,000 in 2020, $160,000 in 2021, and $170,000 in 2022. What is the effect on the accounts of reporting different amounts of revenue for GAAP versus tax?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 21E: Uncertain Tax Position At the end of the current year, Boyd Company claims a 200,000 tax credit on...
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Deferred Tax Liability 2020
2020
2021
2022
Total
Comparison of Differences
Income tax expense (GAAP)
Income tax payable (IRS)
Difference
Dunkin makes the following entry at the end of 2020 to record
income taxes.
General Journal
Debit
Credit
Date
LO 1
Copyright ©2019 John Wiley & Sons, Inc.
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INTL](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F81ee3775-40e9-4f25-b683-ca8b48e3cd62%2F6f987735-f4cd-4ed2-94fc-0d5038282590%2F5qd118_processed.jpeg&w=3840&q=75)
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Deferred Tax Liability 2020
2020
2021
2022
Total
Comparison of Differences
Income tax expense (GAAP)
Income tax payable (IRS)
Difference
Dunkin makes the following entry at the end of 2020 to record
income taxes.
General Journal
Debit
Credit
Date
LO 1
Copyright ©2019 John Wiley & Sons, Inc.
스 Notes
ENG
INTL
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ORe
Accounting for Income Taxes
Dunkin, Inc. reported revenues of $150,000 and expenses of
$70,000 in each of its first three years of operations. For tax
purposes, Dunkin reported the same expenses to the IRS in
each of the years. Dunkin reported taxable revenues of
$120,000 in 2020, $160,000 in 2021, and $170,000 in 2022.
What is the effect on the accounts of reporting different
amounts of revenue for GAAP versus tax?
ENotes
88
ENG
C
F5
F6
F7
PrtSc
De
F8
F9
F10
F11
F12
Ins](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F81ee3775-40e9-4f25-b683-ca8b48e3cd62%2F6f987735-f4cd-4ed2-94fc-0d5038282590%2F7nt77on_processed.jpeg&w=3840&q=75)
Transcribed Image Text:p Search (Alt+Q)
Shawn Smith
55
imations
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ORe
Accounting for Income Taxes
Dunkin, Inc. reported revenues of $150,000 and expenses of
$70,000 in each of its first three years of operations. For tax
purposes, Dunkin reported the same expenses to the IRS in
each of the years. Dunkin reported taxable revenues of
$120,000 in 2020, $160,000 in 2021, and $170,000 in 2022.
What is the effect on the accounts of reporting different
amounts of revenue for GAAP versus tax?
ENotes
88
ENG
C
F5
F6
F7
PrtSc
De
F8
F9
F10
F11
F12
Ins
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