Blossom Co. at the end of 2020, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income Estimated litigation expense Installment sales Taxable income $140000 noncurrent. $1500000 O $140000 current. O $700000 noncurrent. $0. 3500000 The estimated litigation expense of $3500000 will be deductible in 2022 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $1400000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $1400000 current and $1400000 noncurrent. The income tax rate is 20% for all years. The deferred tax asset to be recognized is (2800000) $2200000

Blossom Co. at the end of 2020, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income Estimated litigation expense Installment sales Taxable income $140000 noncurrent. $1500000 O $140000 current. O $700000 noncurrent. $0. 3500000 The estimated litigation expense of $3500000 will be deductible in 2022 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $1400000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $1400000 current and $1400000 noncurrent. The income tax rate is 20% for all years. The deferred tax asset to be recognized is (2800000) $2200000

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 3P: Multiple Temporary Differences Wilcox Company has prepared the following reconciliation of its...

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Current Attempt in Progress Sunland Co. at the end of 2020, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $1380000 Estimated litigation expense 3300000 Installment sales (2640000) Taxable income $2040000 The estimated litigation expense of $3300000 will be deductible in 2022 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $1320000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $1320000 current an $1320000 noncurrent. The income tax rate is 20% for all years. The income tax expense is O $1320000. O $276000. O $660000. O $408000. MacBook Air
32. Blossom Co. at the end of 2020, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $3550000 Estimated litigation expense 4550000 Extra depreciation for taxes (6540000) Taxable income $ 1560000 The estimated litigation expense of $4550000 will be deductible in 2021 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $2180000 in each of the next 3 years. The income tax rate is 20% for all years.Income taxes payable is $0. $312000. $398000. $598000.
30. Wildhorse Co. at the end of 2020, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $1470000 Estimated litigation expense 3450000 Installment sales (2760000) Taxable income $2160000 The estimated litigation expense of $3450000 will be deductible in 2022 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $1380000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $1380000 current and $1380000 noncurrent. The income tax rate is 20% for all years.The deferred tax asset to be recognized is $0. $138000 noncurrent. $690000 noncurrent. $138000 current.
31. Oriole Co. at the end of 2020, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $930000 Estimated litigation expense 2550000 Installment sales (2040000) Taxable income $1440000 The estimated litigation expense of $2550000 will be deductible in 2022 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $1020000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $1020000 current and $1020000 noncurrent. The income tax rate is 20% for all years.The deferred tax liability to be recognized is $408000. $204000. $102000. $288000.
29. Carla Vista Co. at the end of 2020, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $1050000 Estimated litigation expense 2750000 Installment sales (2200000) Taxable income $1600000 The estimated litigation expense of $2750000 will be deductible in 2022 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $1100000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $1100000 current and $1100000 noncurrent. The income tax rate is 20% for all years.The income tax expense is $1100000. $550000. $320000. $210000. Save for Later
Part 1XYZ Co. at the end of 2018, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows:Pretax financial income € 750,000Estimated expenses deductible for taxes when paid 1,200,000Extra depreciation (1,350,000)Taxable income € 600,000 Estimated warranty expense of €800,000 will be deductible in 2019, €300,000 in 2020, and €100,000 in 2021. The use of the depreciable assets will result in taxable amounts of €450,000 in each of the next three years. Instructions (a) Prepare a table of future taxable and deductible amounts.(b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2018, assuming an income tax rate of 40% for all years.
Sarsuela Co. at the end of 2022, its first year of operation, prepared reconciliation between pretax financial income and taxable income as follows: Pretax financial income P400,000 Estimated litigation expense 1,000,000 Installment sales (800,000) Taxable income P600,000 The estimated litigation expenses of P1,000,000 will be deductible in 2023 when it is expected to be paid. The gross profit from installment sales will be realized in the amount of P500,000 and P300,000 each of the next two years. The income tax rate is 30% in current year and 32% in 2023 and 33% in 2024 were enacted for future years. TRUE OR FALSE Statement 1: The net income after tax for the period ending December 31, 2022 is P660,000. Statement 2: Total income tax expense for the period ending December 31, 2022 is P120,000
Pole Co. at the end of 2018, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Use of the depreciable assets will result in taxable amounts of €350,000 in each of the next three years. The estimated litigation expenses of €840,000 will be deductible in 2021 when settlement is expected. Instructions a. Prepare a schedule of future taxable and deductible amounts
Subject :- Account At the end of 2024, its first year of operations, Blossom Company prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $2,890,000 Estimated litigation expense 3890000 Extra depreciation for taxes (5892000) Taxable income $888,000 The estimated litigation expense of $3890000 will be deductible in 2025 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $1964000 in each of the next 3 years. The income tax rate is 20% for all years. The deferred tax asset at the end of 2024 to be recognized is
Dengar
In its first three years of operations, Vaden Corp. experienced the following income/(losses): Year Income/(Loss) Tax Rate 2020 50,000 0.35 2021 40,000 0.30 2022 (130,000) 0.30 Required: Prepare the journal entry that Vaden needs to make in 2022, assuming that it is more likely than not that any loss carryforward will be realized? Prepare the income tax section of the income statement for 2022, beginning with Pretax Net Loss. What additional entry would Vaden need to make in 2022 if it is more likely than not that any loss carryforward will NOT be realized? I need only answer 3