At December 31, 2022, Blossom Corporation had a temporary difference (related to pensions) and reported a related deferred taxasset of $29,100 on its balance sheet. At December 31, 2023, Blossom has five temporary differences. An analysis reveals thefollowing:Future (Taxable) Deductible Amountsemporary Difference202420252026oks; deductible when funded for tax purposes$29,100$19,100$10,000earned for accounting purposes and when received for tax purposes76,000accounting purposes and recognized for tax purposes when paidalment sales when sold for book purposes, and as collected for tax purposes24,000(36,300)(36,300)(36,300)ting purposes, and CCA for tax purposes(90,300)(50,000)(40,000)$2,500($67,200)($66,300)The enacted tax rate has been 30% for many years. In November 2023, the rate was changed to 28% for all periods after January 1,2025. Assume that the company has income tax due of $180,000 on the 2023 tax return and that Blossom follows IFRS.(a)Indicate how deferred taxes should be presented on Blossom's December 31, 2023 SFP.BLOSSOM CORPORATION(Partial) Balance Sheet$

Deferred taxes assets-Deferred tax assets is a business tax credit for future taxes, and a deferred…

Answered: At December 31, 2022, Blossom…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

S a. What is MSU's interest expense deduction for 2023? $ For 2023, MSU Corporation has $500,000 of adjusted taxable income, $22,000 of business interest income, and $120,000 of business interest expense. It has average annual gross receipts of more than $29,000,000 over the prior three taxable years. b. How much interest expense can be deducted for 2023 if MSU's adjusted taxable income is $300,000?
None
Metlock reported the following pretax financial income (loss) for the years 2020-2022. 2020 $117,600 2021 (139,000) 2022 176,400 Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 20% for 2020- 2022.
A company prepared the following reconciliation for 2021: Pretax financial income for 2021 $719,000 Originating temporary difference 19,000 Permanent difference (38,000) Taxable income $xxxx (Figure this amount out on your own. Note: the parentheses outside the permanent difference mean subtraction). The temporary difference will reverse evenly over the next two years (i.e., 2022 and 2023). The enacted income tax rates are…
On December 31, 2019, an entity reported a deferred tax liability of P600,000 and a deferred tax asset of P150.000 On December 31, 2020, the deferred tax liability is P900,000 and the deferred tax asset is zero. What is the deferred tax expense for 2020?
At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $100 million attributable to a temporary book-tax difference of $400 million in a liability for estimated expenses. At the end of 2021, the temporary difference is $304 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2021 is $720 million and the tax rate is 25%. Required:1. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that the deferred tax asset will be realized in full. ( 1 Journal Entry for - 2021 income taxes. 1 Journal Entry for valuation allowance for the end of 2021.) 2. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that only one-fourth of the deferred tax asset ultimately will be realized. ( 1 Journal Entry for - 2021 income taxes. 1 Journal Entry for valuation allowance for the end of 2021.)
Subject : Accounting Bre-X Inc.'s only temporary difference at the beginning and end of 2022 is caused by a $1.5-million deferred gain for tax purposes on an installment sale of a plant asset. The related receivable (only one half of which is classified as a current asset) is due in equal instalments in 2023 and 2024. The related deferred tax liability at the beginning of the year is $300,000. In Quarter three (3) of 2022, a new tax rate of 24% is enacted into law and is scheduled to become effective for 2024. Taxable income is expected in all future years. Required: a. Determine the amount to be reported as a deferred tax liability at the end of 2022. Indicate its proper classification(s) if Bre-X Inc. uses ASPE guidelines. b. Indicate the classification of the Deferred Tax Asset or Deferred Tax Liability account if Bre-X Inc. uses IFRS guidelines. c. Prepare the journal entry (if any) that is necessary to adjust the deferred tax liability when the new tax rate is enacted into law.
In 2022, NB, Incorporated's federal taxable income was $242,000. Compute the required installment payments of 2023 tax in each of the following cases: Required: a. NB's 2023 taxable income is $593,000. b. NB's 2023 taxable income is $950,000. c. NB's 2023 taxable income is $1,400,000. a. Total installment payments b. Total installment payments c. Total installment payments Amount
In 2021, a company accrued salaries expense. It will make the payment in 2022. At the end of 2021, as a result of this transaction, the company will __________. (Enter 1, 2, 3, or 4 that represents the correct answer). 1. record a deferred tax asset. 2. record a deferred tax liability. 3. have a permanent difference in pretax financial income and taxable income for 2021. 4. have no differences in pretax financial income and taxable income for 2021.
Vishnu
For 2022, MSU Corporation has $500,000 of adjusted taxable income, $22,000 of business interest income, and $120,000 of business interest expense. It has average annual gross receipts of more than $27,000,000 over the prior three taxable years. a. What is MSU's interest expense deduction for 2022? b. How much interest expense can be deducted for 2022 if MSU's adjusted taxable income is $300,000?
As of December 31, 2022, its first year of operations, Batangas Company had taxable temporary differences totaling P3,000,000. Of this total, P1,000,000 relates to current items. Batangas also had deductible temporary differences totaling P1,500,000, P250,000 of which relates to current items. Pretax financial income for the year was P20,000,000. The income tax rate is 35%. How much income tax payable should Batangas Company report on December 31, 2022?

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS