Ff.190. Corning-Howell reported taxable income in 2024 of $188 million. At December 31, 2024, the reported amount of some assets andliabilities in the financial statements differed from their tax bases as indicated below:AssetsCurrentNet accounts receivablePrepaid insurancePrepaid advertisingNoncurrentInvestments in equity securities (fair value)*Buildings and equipment (net)LiabilitiesCurrentDeferred subscription revenueLong-termLiability-compensated future absences.Carrying Amount$ 76 million88 million72 million72 million428 million80 million662 millionTax Basis$ 80 million000348 million00"Gains and losses taxable when investments are sold.The total deferred tax asset and deferred tax liability amounts at January 1, 2024, were $190.25 million and $25 million, respectively.The enacted tax rate is 25% each year.Required:1. Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2024.2. Determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2024.3. Determine the income tax payable currently for the year ended December 31, 2024.4. Prepare the journal entry to record income taxes for 2024.

1. Computation of Total Deferred Tax Asset and Liability as on 31 Dec 2024 ( $in Million)…

Corning-Howell reported taxable income in 2024 of $188 million. At December 31, 2024, the reported amount of some assets and liabilities in the financial statements differed from their tax bases as indicated below: Carrying Amount Assets Current Net accounts receivable Prepaid insurance Prepaid advertising Prep Noncurrent Investments in equity securities (fair value)* Buildings and equipment (net) Liabilities Current Deferred subscription revenue Long-term Liability-compensated future absences $76 million 88 million 72 million 72 million 428 million 80 million. 662 million Tax Basis $ 80 million e 0 0 348 million 0 0 Gains and losses taxable when investments are sold. The total deferred tax asset and deferred tax liability amounts at January 1, 2024, were $190.25 million and $25 million, respectively. The enacted tax rate is 25% each year. Required: 1. Determine the total deferred tax asset and eferred tax liability amounts at December 31, 2024. 2. Determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2024. 3. Determine the income tax payable currently for the year ended December 31, 2024. 4. Prepare the journal entry to record income taxes for 2024.

Corning-Howell reported taxable income in 2024 of $188 million. At December 31, 2024, the reported amount of some assets and liabilities in the financial statements differed from their tax bases as indicated below: Carrying Amount Assets Current Net accounts receivable Prepaid insurance Prepaid advertising Prep Noncurrent Investments in equity securities (fair value)* Buildings and equipment (net) Liabilities Current Deferred subscription revenue Long-term Liability-compensated future absences $76 million 88 million 72 million 72 million 428 million 80 million. 662 million Tax Basis $ 80 million e 0 0 348 million 0 0 Gains and losses taxable when investments are sold. The total deferred tax asset and deferred tax liability amounts at January 1, 2024, were $190.25 million and $25 million, respectively. The enacted tax rate is 25% each year. Required: 1. Determine the total deferred tax asset and eferred tax liability amounts at December 31, 2024. 2. Determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2024. 3. Determine the income tax payable currently for the year ended December 31, 2024. 4. Prepare the journal entry to record income taxes for 2024.

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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