For the year ended December 31, 2015, Pering Co. reported pretaxfinancial income of $550,000. Its current tax expense was $144,000.Pering reported a difference between pretax financial statement incomeand taxable income. This difference is due to accelerated depreciationfor income tax purposes. Pering?s effective income tax rate is 30% andPering made estimated tax payments during 2015 of $75,000. Whatamount did Paring report as taxable income for 2015?a. $405,000b. $475,000c. $480,000d. $550,000

Step 1: Identify the FormulaThe relationship between taxable income and current tax expense is:…

Answered: For the year ended December 31, 2015,…

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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In 2017, Amirante Corporation had pretax financial income of $168,000 and taxable income of $120,000. The difference is due to the use of different depreciation methods for tax and accounting purposes. The effective tax rate is 40%. Compute the amount to be reported as income taxes payable at December 31, 2017.
What is the 2016 net income?
In 2016, Bodily Corporation reported $290,000 pretax accounting income. The income tax rate for that year was 28%. Bodily had an unused $130,000 net operating loss carryforward from 2014 when the tax rate was 31%. What would be Bodily's income tax payable for 2016? (General Account)[03]
(Three Differences, Compute Taxable Income, Entry for Taxes) Zurich Company reports pretax financial income of $70,000 for 2017. The following items cause taxable income to be different than pretax financial income.1. Depreciation on the tax return is greater than depreciation on the income statement by $16,000.2. Rent collected on the tax return is greater than rent recognized on the income statement by $22,000.3. Fines for pollution appear as an expense of $11,000 on the income statement.Zurich’s tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2017.Instructions(a) Compute taxable income and income taxes payable for 2017.(b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017.(c) Prepare the income tax expense section of the income statement for 2017, beginning with the line “Income before income taxes.”(d) Compute the…
Shetland Inc. had pretax financial income of $154,000 in 2017. Included in the computation of that amount is insurance expense of $4,000 which is not deductible for tax purposes. In addition, depreciation for tax purposes exceeds accounting depreciation by $10,000. Prepare Shetland’s journal entry to record 2017 taxes, assuming a tax rate of 45%.
Carla reported the following pretax financial income (loss) for the years 2015-2019. 2015 $235,000 2016 343,000 2017 98,000 2018 (511,000) 2019 176,000 ) Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 34% for 2015 and 2016, and 40% for 2017-2019. Assume the carryback provision is used first for net operating losses A.) Prepare the journal entries for the years 2017-2019 to record income tax expense, income taxes payable (refundable), and the tax effects of the loss carryback and loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-fifth of the benefits of the loss carryforward will not be realized. B.) Prepare the income tax section of the 2018 income statement beginning with the line "Income (loss) before income taxes."
Zurich Company reports pretax financial income of $84,270 for 2014. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $20,240. 2. Rent collected on the tax return is greater than rent earned on the income statement by $24,840. 3. Fines for pollution appear as an expense of $13,940 on the income statement. Zurich's tax rate is 40% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2014. Compute taxable income and income taxes payable for 2014.(Cost Account)
Conlin Corporation had the following tax information. Year Taxable Income Tax Rate Taxes Paid 2015 $300,000 35% $105,000 2016 325,000 30 97,500 2017 400,000 30 120,000 In 2018, Conlin suffered a net operating loss of $480,000, which it elected to carry back. The 2018 enacted tax rate is 29%. Prepare Conlin’s entry to record the effect of the loss carryback.
From the following information for R Ltd. for the year ended 31 March, 2016, calculate the deferred tax asset/ liability as per AS-22 Accounting Profit. ₹10,00,000 Book Profit as per MAT(|Minimum Alternate Tax. ₹9,00,000Profit as per income Tax Act. ₹1,00,000Tax Rate 30%MAT Rate 10%
I need this correct answer general Accounting
Sagehen Enterprises reports pretax financial income of $80,000 for 2012. The following cause taxable income to be different from pretax financial income: Depreciation on the tax return is greater than depreciation on the income statement by $15,000. Rent collected on the tax return is $25,000 greater than rent earned on the income statement. Fines reported on the income statement were $10,000. The current tax rate is 30%. There are no deferred taxes at the beginning of 2012. Compute taxable income and income tax payable for 2012. Which of the differences are temporary, and which are permanent?(Cost Account)
Sagehen Enterprises reports pretax financial income of $80,000 for 2012. The following cause taxable income to be different from pretax financial income: Depreciation on the tax return is greater than depreciation on the income statement by $15,000. Rent collected on the tax return is $25,000 greater than rent earned on the income statement. Fines reported on the income statement were $10,000. The current tax rate is 30%. There are no deferred taxes at the beginning of 2012. Compute taxable income and income tax payable for 2012. Which of the differences are temporary, and which are permanent?

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