Prepare the income tax section of the income statements for each of the years 2017 to 2020, beginning with the line "Income(loss) before income tax.". (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45). Donot leave any answer field blank. Enter O for amounts.)Bramble Inc.(Partial) Income StatementsDecember 312017201820192020eTextbook and MediaList of Accounts>> Question 5 of 6< >View PoliciesCurrent Attempt in ProgressBramble Inc. reports the following incomes (losses) for both book and tax purposes (assume the carryback provision is used wherepossible):AccountingIncomeYear(Loss)Tax Rate2017$137,00025 %2018107,00025 %2019(314,000 )30 %202052,00030 %The tax rates listed were all enacted by the beginning of 2017.

Income before tax means the earnings from which the tax is yet to be deducted.

Bramble Inc. reports the following incomes (losses) for both book and tax purposes (assume the carryback provision is used where possible): Accounting Income Year (Loss) Tax Rate 2017 $137,000 25 % 2018 107,000 25 % 2019 (314,000 ) 30 % 2020 52,000 30 % The tax rates listed were all enacted by the beginning of 2017.

Bramble Inc. reports the following incomes (losses) for both book and tax purposes (assume the carryback provision is used where possible): Accounting Income Year (Loss) Tax Rate 2017 $137,000 25 % 2018 107,000 25 % 2019 (314,000 ) 30 % 2020 52,000 30 % The tax rates listed were all enacted by the beginning of 2017.

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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During 2020, Sheffield Co.'s first year of operations, the company reports pretax financial income at $252,300. Sheffield's enacted tax rate is 45% for 2020 and 20% for all later years. Sheffield expects to have taxable income in each of the next 5 years. The effects on future tax returns of temporary differences existing at December 31, 2020, are summarized as follows. Future Years 2021 2022 2023 2024 2025 Total Future taxable (deductible) amounts: Installment sales Depreciation Unearned rent $31,300 5,800 (48,500) (48,500) $31,300 $31,300 5,800 $5,800 $5,800 $93,900 29,000 (97,000) 5,800 Complete the schedule below to compute deferred taxes at December 31, 2020. (Negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Deferred Tax Future Taxable Temporary Difference (Deductible) Amounts Tax Rate (Asset) Liability $ Installment sales $93,900 1% Depreciation 29,000 1% Unearned rent (97,000) % Totals THA
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