buestion 0 The folowing information was disdosed during the audit of Kingbird Inc. Amount Due per Tax Return $132.100 104,200 1. Year 2020 2021 On January 1, 2020, equipment costing $582,500 is purchased. For finanda reporting purposes, the company Uses straight-line depreciation over a 3-year Ife. For tax purposes, the company uses the electire straight-line method over a 5-vear life. (Hint: For tax p.rposes, the har-year convantion as discussed in aensedix 11A must be used) In January 2021, $231,900 is collected in advance rental of a building for a 3-vear period. The entire $231,500 is reported as taable income in 2021. but $154,000 of the $231,900 is reported as uneamed revenue in 2021 for financial reporting purposes. The remaining amount of unearnad revenue is to be recognized equally in 2022 and 2023. The tax rate is 20% in 2020 and al subsequent periods. (Hint: To find taxeble income in 2020 and 2021, the related income taxes payable amounts wil have to be "grossed up.) . ke tamporary differences existed at the and of 2019. Kingbird expacts to report taxable income in cach of the next 5 years.

buestion 0 The folowing information was disdosed during the audit of Kingbird Inc. Amount Due per Tax Return $132.100 104,200 1. Year 2020 2021 On January 1, 2020, equipment costing $582,500 is purchased. For finanda reporting purposes, the company Uses straight-line depreciation over a 3-year Ife. For tax purposes, the company uses the electire straight-line method over a 5-vear life. (Hint: For tax p.rposes, the har-year convantion as discussed in aensedix 11A must be used) In January 2021, $231,900 is collected in advance rental of a building for a 3-vear period. The entire $231,500 is reported as taable income in 2021. but $154,000 of the $231,900 is reported as uneamed revenue in 2021 for financial reporting purposes. The remaining amount of unearnad revenue is to be recognized equally in 2022 and 2023. The tax rate is 20% in 2020 and al subsequent periods. (Hint: To find taxeble income in 2020 and 2021, the related income taxes payable amounts wil have to be "grossed up.) . ke tamporary differences existed at the and of 2019. Kingbird expacts to report taxable income in cach of the next 5 years.

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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Subject: accounting
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