Estimated tax Information:made four equal estimated tax payments totaling $360,000 ($90,000 per quarter). For purposes of estimated taxliabilities, assume was in existence in 2019 and that in 2019 it reported a tax liability of $500,000. During 2020,determined its taxable income at the end of each of the four quarters as follows:Quarter-endFirstSecondThirdFinally, assume that is not a large corporation for purposes of estimated tax calculations. (Do not round Intermediatecalculations. Round your answers to the nearest dollar amount.)InstallmentCumulative taxableincome (loss)$ 480,000e. Determine the quarters for which is subject to underpayment of estimated tax penalties. (Round "Annualization Factor" forFourth quarter to 2 decimal places.)1st quarter2nd quarter3rd quarter4th quarter$ 1,100,000$ 1,400,000$$$IS(1) Requiredcumulativepayment (perquarter) underprior year taxmethod(2) Estimatedtax payment125,000 S250,000 $375.000 $500.000 $underannualizedmethod84,000168,000346,500392,000>*Answer is complete but not entirely correct.(3) Requiredpayment basedon current yeartax liabilityss$$(4) Requiredcumulativepayment0X S293.498 $440.247 $586.000 $84,000 s84,000 S408,000 S500,000 $(5) Actualpayments90,000180,000270,000360,000UnderpaymentpenaltyNoNoYesYes3333

Estimated tax Information: made four equal estimated tax payments totaling $360,000 ($90,000 per quarter). For purposes of estimated tax liabilities, assume was in existence in 2019 and that in 2019 it reported a tax liability of $500,000. During 2020, determined its taxable income at the end of each of the four quarters as follows: Quarter-end First Second Third Cumulative taxable income (loss) $ 400,000 $ 1,100,000 $ 1,400,000 Finally, assume that is not a large corporation for purposes of estimated tax calculations. (Do not round Intermediate calculations. Round your answers to the nearest dollar amount.) e. Determine the quarters for which Fourth quarter to 2 decimal places.) is subject to underpayment of estimated tax penalties. (Round "Annualization Factor" for

Estimated tax Information: made four equal estimated tax payments totaling $360,000 ($90,000 per quarter). For purposes of estimated tax liabilities, assume was in existence in 2019 and that in 2019 it reported a tax liability of $500,000. During 2020, determined its taxable income at the end of each of the four quarters as follows: Quarter-end First Second Third Cumulative taxable income (loss) $ 400,000 $ 1,100,000 $ 1,400,000 Finally, assume that is not a large corporation for purposes of estimated tax calculations. (Do not round Intermediate calculations. Round your answers to the nearest dollar amount.) e. Determine the quarters for which Fourth quarter to 2 decimal places.) is subject to underpayment of estimated tax penalties. (Round "Annualization Factor" for

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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The pretax financial income of Tamarisk Company differs from its taxable income throughout each of 4 years as follows. Year PretaxFinancial Income Taxable Income Tax Rate 2020 $295,000 $180,000 35 % 2021 320,000 217,000 20 % 2022 335,000 264,000 20 % 2023 435,000 592,000 20 % Pretax financial income for each year includes a nondeductible expense of $29,300 (never deductible for tax purposes). The remainder of the difference between pretax financial income and taxable income in each period is due to one depreciation temporary difference. No deferred income taxes existed at the beginning of 2020. Prepare the Income stmt for 2021 beginning with income before income taxes
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Bestlook Company provided the following information for its first year of operatic December 31, 2019 in connection with the preparation of it income tax return: Accounting income Nondeductible expenses P8,000,000 400,000 600,000 Nontaxable revenue Deferred income on installment sales included in financial income but taxable in 2020 900,000 200,000 600,000 Doubtful accounts recorded Financial depreciation Tax depreciation Estimated warranty cost accrued in 2019 but not deductible for tax purposes until paid Income tax rate (current and future) a. How much is the current tax expense? 700,000 200,000 35% b. How much is the deferred tax asset? c. How much is the deferred tax liability? d. How much is the total tax expense?
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Case Development began operations in December 2021. When property is sold on an installment basis, Case recognizes installment income for financial reporting purposes in the year of the sale. For tax purposes, installment income is reported by the installment method. 2021 installment income was $870,000 and will be collected over the next three years. Scheduled collections and enacted tax rates for 2022–2024 are as follows: 2022 $ 290,000 20 % 2023 320,000 25 2024 260,000 25 Case also had product warranty costs of $335,000 expensed for financial reporting purposes in 2021. For tax purposes, only the $80,000 of warranty costs actually paid in 2021 was deducted. The remaining $255,000 will be deducted for tax purposes when paid over the next three years as follows: 2022 $ 95,000 2023 84,000 2024 76,000 Pretax accounting income for 2021 was $1,005,000, which includes interest revenue of $25,000 from municipal bonds. The…
1.The Mosaic Company organized on January 2, 2021, had pretax accounting income of $8,000,000 and taxable income of $11,600,000 for the year ended December 31, 2021. The 2021 tax rate was 25%. The only difference between book and taxable income is estimated warranty costs. Expected payments and scheduled enacted tax rates are as follows: 2022 $ 1,200,000 30 % 2023 600,000 30 % 2024 600,000 30 % 2025 1,200,000 35 % Required:Prepare one compound journal entry to record Mosaic's provision for taxes for the year 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
The following information has been obtained for Sheridan Corporation. 1. Prior to 2020, taxable income and pretax financial income were identical. 2. Pretax financial income is $1,634,000 in 2020 and $1,359,000 in 2021. On January 1, 2020, equipment costing $1,260,000 is purchased. It is to be depreciated on a straight-line basis over 5 years for tax purposes and over 8 years for financial reporting purposes. (Hint: Use the half-year convention for tax purposes, as discussed in Appendix 11A.) 3. 4. Interest of $57,000 was earned on tax-exempt municipal obligations in 2021. 5. Included in 2021 pretax financial income is a gain on discontinued operations of $195,000, which is fully taxable. 6. The tax rate is 20% for all periods. 7. Taxable income is expected in all future years.
In 2021, NB Incorporated’s federal taxable income was $292,000. Compute the required installment payments of 2021 tax in each of the following cases: Required: NB’s 2022 taxable income is $550,000. NB’s 2022 taxable income is $935,000. NB’s 2022 taxable income is $1,362,000. a.Total installement payments b. total installment payments c. total install payments.
During 2020, Marigold Co.’s first year of operations, the company reports pretax financial income at $247,300. Marigold’s enacted tax rate is 45% for 2020 and 20% for all later years. Marigold 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 $33,800 $33,800 $33,800 $101,400 Depreciation 5,800 5,800 5,800 $5,800 $5,800 29,000 Unearned rent (47,000) (47,000) (94,000) 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).)…
The pretax financial income of x company differs from its taxable income throughout each of 4 years as follows Year. Pretax Financial Income. Taxable income. Tax rate 2020. 305,000. 173,000. 35% 2021. 349,000. 216,000. 20% 2022 358,000 277,000 20% 2023 429,000 615,000 20% Pretax fiancial income for each year includes a nondeductible exense of $29,100 (never deductible for tax purposes) The remainder of the difference between pretax fiancial income and taxable income in each period is due to one depreciation temporary difference. No deferred income taxes existed at the beginning of 2020. Prepare journal entries to record income taxes in all 4 years. Assume that the change in the tax rate to 20% was not enacted until the beginning of 2021
Received rent from ruck in 2019 $87,000 Municipal bond income $111,000 Depreciation for tax purposes in excess of book depreciation $51,000 Installment sales profit to be taxed in 2019 $153,000 Tubom had pre tax accounting income of $1,800,000 and a tax rate of 30% in 2018, its first year of operations. For 2018, what is the amount of income taxes payable?
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.