During 2021 a company reported an increase in the deferred tax liability account of $77,990, an increase in the deferred tax asset account of $35,325 and an income tax liability of $398,555. What is the income tax expense to be reported in the income statement for the year ending December 31, 2021?

During 2021 a company reported an increase in the deferred tax liability account of $77,990, an increase in the deferred tax asset account of $35,325 and an income tax liability of $398,555. What is the income tax expense to be reported in the income statement for the year ending December 31, 2021?

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter13: Tax Credits And Payment Procedures

Section: Chapter Questions

Problem 25P

See similar textbooks

Similar questions

Prepare the income statement for 2023, beginning with the line "income before income taxes.
A company's income statement reported net income of $88,500 during 2019. The income tax return excluded a revenue item of $9,500 (reported on the income statement) because under the tax laws the $9,500 would not be reported for tax purposes until 2020. Which of the following statements is incorrect assuming a 21% tax rate? 1. Income tax expense on the income statement is $16,590. 2. A $1,995 deferred tax liability is reported as of December 31, 2019. 3. The $9,500 of revenue creates a deferred tax liability. 4. Income tax expense on the income statement exceeds the tax liability to the IRS.
Discord Inc. income tax return shows taxes currently payable for 2020 of $85,000. The company reported deferred tax assets of $35,000 at the end of 2019 and $24,000 at the end of 2020. Accord reported deferred tax liabilities of $48,000 at the end of 2019 and $54,000 at the end of 2020. Determine the amount of income tax expense reported by Discord for 2020.
Bezos Company’s income tax return shows income taxes payable for 2020 of $75,000 (that is, $75,000 is owed for 2020). For financial reporting, the firm reports deferred tax assets of $67,900 at the beginning of 2020 and $63,600 at the end of 2020. It reports deferred tax liabilities of $53,600 at the beginning of 2020 and $59,400 at the end of 2020. Compute the amount of income tax expense for 2020.
What is the adjusted balance of income tax payable to be reflected in the 2021 statement of financial position?
For the year ended December 31, 2023, Crane Ltd. reported income before income taxes of $82,000.In 2023, Crane Ltd. paid $45,000 for rent; of this amount, $15,000 was expensed in 2023. The remaining $30,000 was treated as a prepaid expense for accounting purposes and would be expensed equally over the 2024-2025 period. The full $45,000 was deductible for tax purposes in 2023.The company paid $66,000 in 2023 for membership in a local golf club (which was not deductible for tax purposes).In 2023 Crane Ltd. began offering a 1-year warranty on all merchandise sold. Warranty expenses for 2023 were $32,000, of which $26,000 was actual repairs for 2023 and the remaining $6,000 was estimated repairs to be completed in 2024.Meal and entertainment expenses totalled $16,000 in 2023, only half of which were deductible for income tax purposes.Depreciation expense for 2023 was $160,000. Capital Cost Allowance (CCA) claimed for the year was $181,000.Crane was subject to a 20% income tax rate for…
A company reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Year Pretax Income (Loss) Tax Rate 2018 $142,000 17% 2019 94,000 17 2020 (208,800) 22 2021 318,500 22 In 2021, what amount of income tax payable should be reported for the company, assuming the loss can carry forward?
Required: 1. Determine the amounts necessary to record Allmond's income taxes for 20: Allmond Corporation, organized on January 3, 2021, had pretax accounting income of $25 million and taxable income of $33 million 2. What is Allmond's 2021 net income? for the year ended December 31, 2021. The 2021 tax rate is 25%. The only difference between accounting income and taxable income is estimated product warranty costs. Assume that expected payments and scheduled tax rates (based on recently enacted tax legislation) are as follows: Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 GJ Required 2 Prepare the appropriate journal entry. (If no entry is required for a transaction/e account field. Enter your answers in millions rounded to 2 decimal places (i.e., 5 View transaction list 1 Record 2021 income taxes. X Cr 2022 2023 2024 2025 $2 million 2 million 1 million 3 million 35% 35% 35% 25% Required: 1. Determine the amounts necessary to…
ABC Company reported pretax financial income of 7,000,000 for the year ended December 31,2021. The taxable income was 6,500,000. The differences is due to accelerated depreciation for income tax purposes. The income tax rate is 25% and ABC Company made estimated tax payment of 500,000 during the current year. REQUIREMENTS: a. Prepare journal entries for 2021. b. Compute the total income tax expenses for 2021
At the beginning of 2021, Pitman Co. had pretax financial income of $1,200,000. Additionally, there was a timing difference of $300,000 due to an accounts receivable that will not be collected until the following year. The tax rate us 30%. A. Calculate the total taxable income for 2021. B. Calculate Income tax expense, income tax payable, and the deferred amount for 2021, and create the journal entry.
Pretax financial statement income for the year ended December 31, 2021, was $25 million for Scott Pen Company. Scott's taxable income was $30 million. This was a result of differences between depreciation for financial reporting purposes and tax purposes. The enacted tax rate is 30% for 2021 and 40 % thereafter. What amount should Scott report as the current portion of income tax expense for 2021?
The following facts relate to a company for 2021: Income tax payable $150,200 Income tax expense 242,700 Taxable income 448,000 Pretax financial income 873,000 What is the effective income tax rate for 2021? Very important: Please present your answer in percentage format, and round the percentage amount to 2 decimal places if necessary. For example, your answer should look like 23.45% or 23.45 (the percentage sign, %, is optional), not 0.2345.