Information for Kent Corp. for the year 2021:Reconcillation of pretax accounting income and taxable income:Pretax accounting income$180,000(15,000)165,000(12,000)Permanent differencesTemporary difference-depreciationTaxable income$153,000Cumulative future taxable amounts all from depreciation temporary differences:As of December 31, 2020$13,000$25,000As of December 31, 2021The enacted tax rate vwas 25% for 2020 and thereafter.What should be the balance in Kent's deferred tax liability account as of December 31, 2021?Multiple ChoicePrev8 of 39Next >Question no....pages....pdf7 Question no....pagesMacBook Air

Deferred tax liability refers to the sum of money the company needs to pay as income tax that has…

conciliation of pretax accounting income and taxable income: eretax accounting income Permanent differences $180,000 (15,000) 165,000 (12,000) Temporary difference-depreciation Taxable income $153,000 Eumulative future taxable amounts all from depreciation temporary As of December 31, 2020 $13,000

conciliation of pretax accounting income and taxable income: eretax accounting income Permanent differences $180,000 (15,000) 165,000 (12,000) Temporary difference-depreciation Taxable income $153,000 Eumulative future taxable amounts all from depreciation temporary As of December 31, 2020 $13,000

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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Exercise 16-6 (Algo) Temporary difference; income tax payable given [LO16-3] In 2024, DFS Medical Supply collected rent revenue for 2025 tenant occupancy. For income tax reporting, the rent is taxed when collected. For financial statement reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy the rental property. The deferred portion of the rent collected in 2024 amounted to $390,000 at December 31, 2024. DFS had no temporary differences at the beginning of the year. Required: Assuming an income tax rate of 25% and 2024 income tax payable of $940,000, prepare the journal entry to record income taxes for 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet
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Buffalo Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax financial income $811,000 $932,000 $992,000 Excess depreciation expense on tax return (31,500 ) (39,100 ) (9,900 ) Excess warranty expense in financial income 19,900 9,800 8,300 Taxable income $799,400 $902,700 $990,400 The income tax rate for all years is 20%. (a) Your Answer Correct Answer (Used) Assuming there were no temporary differences prior to 2020, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020, 2021, and 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit…
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Recording NOL Carryforward and Carryback|Carryforward Toner Corporation computed the following: Year 1 taxable income, $10,000; Year 2 taxable loss, $( 40,000). At the end of Year 2, Toner made the following estimates: Year 3 taxable income, $4,000; Year 4 taxable income, $11,000; and Year 5 taxable income, $50,000. On the basis of these estimates, Toner believes the full amount of the tax loss carryforward benefit is more likely than not to be realized. There are no other temporary differences. Tax rates are 25% for Year 1, Year 2, and Year 3; and 30% for Year 4 and Year 5. Net operating loss carryforwards can only offset a maximum of 80% of taxable income in each of the future years. Required Do not give solution in image format
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