During 2020, Coronado Co.'s first year of operations, the company reports pretax financial income at $258,100. Coronado's enacted tax rate is 45% for 2020 and 20% for all later years. Coronado 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 $29,800 $29,800 $29,800 $89,400 Depreciation 5,800 5,800 5,800 $5,800 $5,800 29,000 Unearned rent (45,600) (45,600) (91,200) (a) 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).) Temporary Difference Future Taxable (Deductible) Amounts Tax Rate (Asset) Deferred Tax
During 2020, Coronado Co.'s first year of operations, the company reports pretax financial income at $258,100. Coronado's enacted tax rate is 45% for 2020 and 20% for all later years. Coronado 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 $29,800 $29,800 $29,800 $89,400 Depreciation 5,800 5,800 5,800 $5,800 $5,800 29,000 Unearned rent (45,600) (45,600) (91,200) (a) 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).) Temporary Difference Future Taxable (Deductible) Amounts Tax Rate (Asset) Deferred Tax
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
None
Transcribed Image Text:During 2020, Coronado Co.'s first year of operations, the company reports pretax financial income at $258,100. Coronado's enacted
tax rate is 45% for 2020 and 20% for all later years. Coronado 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
$29,800
$29,800
$29,800
$89,400
Depreciation
5,800
5,800
5,800
$5,800
$5,800
29,000
Unearned rent
(45,600)
(45,600)
(91,200)
(a)
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).)
Temporary
Difference
Future Taxable
(Deductible) Amounts
Tax Rate
(Asset)
Deferred Tax
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education