Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: ($ in thousands) Situation 1 2 3 Taxable income $85 $215 $195 $260 Future deductible amounts 15 20 20 Future taxable amounts 15 15 30 Balance(s) at beginning of the year: Deferred tax asset 9 4 Deferred tax liability The enacted tax rate is 40%. Required: For each situation, determine the: a. Income tax payable currently b. Deferred tax asset–balance c. Deferred tax asset-change (dr) cr d. Deferred tax liability-balance e. Deferred tax liability-change (dr) er f. Income tax expense 2.

Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: ($ in thousands) Situation 1 2 3 Taxable income $85 $215 $195 $260 Future deductible amounts 15 20 20 Future taxable amounts 15 15 30 Balance(s) at beginning of the year: Deferred tax asset 9 4 Deferred tax liability The enacted tax rate is 40%. Required: For each situation, determine the: a. Income tax payable currently b. Deferred tax asset–balance c. Deferred tax asset-change (dr) cr d. Deferred tax liability-balance e. Deferred tax liability-change (dr) er f. Income tax expense 2.

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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Save & Exit Subm Two independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: SITUATION Taxable income Amounts at year-end: Future deductible amounts 2. $46,000 $86,000 5,600 10,600 0 5,600 Future taxable amounts Balances at beginning of year, dr (cr): Deferred tax asset, Deferred tax liability $ 1,000 $ 3,180 0 1,000 The enacted tax rate is 30% for both situations. Required: For each situation determine the: SITUATION 2. (a.) Income tax payable currently. (b.) Deferred tax asset - balance at year-end. (c.) Deferred tax asset change dr or (cr) for the year. (d.) Deferred tax liability - balance at year-end. (e.) Deferred tax liability change dr or (cr) for the year. (f.) Income tax expense for the year. Next > 31 of 39
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Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences reported first on: (1) (2) (3) (4) Income Statement Revenue $ 22,500 $ 15,500 $ 15,500 Accounting income Temporary differences: Income statement first Expense Revenue Expense Tax return first: Revenue Expense Taxable income $ 22,500 $ 22,500 $ Required: For each situation, determine the taxable income assuming pretax accounting income is $100,000. Note: Amounts to be deducted should be indicated by a minus sign. (1) Revenue $ 22,500 Tax Return. 0 $ (2) Expense 0 $ $ 10,500 (3) 0 $ 0
Taxable Income and Total Tax Liability are in thousands. Item Number of returns Taxable income Under $15,000 30,715,203 Total tax liability Average tax rate* $ 5,400,125 $ 529,117 9.80% Ranges of Adjusted Gross Income $15,000 to under $30,000 27,411,021 $ 189,357,926 $ 15,530,244 $30,000 to under $50,000 28,926,896 $ 639,301,718 $ 55,477,985 8.20% 8.68% *The average tax rate is total tax liability divided by taxable income. Required: $50,000 to under $100,000 37,548,054 $ 1,912,937,663 $ 214,989,667 11.24% $100,000 to under $200,000 24,180,826 $ 2,687,830,279 $ 385,058,662 14.33 % $200,000 or more 11,616,732 $ 6,249,277,422 $ 1,591,015,179 25.46% a. If the federal tax system was changed to a proportional tax rate structure with a tax rate of 17.10%, calculate the amount of tax liability for 2021 for all taxpayers. b. What is the amount and nature of difference from actual tax liability specified in the above table? Required A Required B If the federal tax system was changed to a…
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A taxpayer is itemizing their return and they're trying to calculate the deductible amount of state income taxes paid. They have $4,000 from their Form(s) W-2 and they paid an outstanding balance in the current year for the prior year's balance of $2,500. What is the total amount of Line 5 income taxes that they can itemize? (Do not consider SALT limitations for this question) 2500 4000 6500
please help me find the write answer for rhe ones that are wrong (red boxes) thank you
5
Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: Taxable income Future deductible amounts Future taxable amounts Balance(s) at beginning of the year: Deferred tax asset Deferred tax liability. The enacted tax rate is 25%. a. Income tax payable currently. b. Deferred tax asset-ending balance. c. Deferred tax asset-change. d. Deferred tax liability-ending balance. e. Deferred tax liability-change. f. Income tax expense. 1 ¹ 1 2 ³ $132 $264 $292 16 | ($ in thousands) Situation 2 16 2 8 Required: For each situation, determine the following: (Enter your answers in thousands rounded to one decimal place (i.e. 1,200 should be entered as 1.2). Negative amounts should be indicated by a minus sign. Leave no cell blank, enter "0" wherever applicable.) Situation 20 16 3 21 2 4| $404 20 76 4 4
Dunn, Inc. uses the accrual method of accounting for financial reporting purposes and appropriately uses the installment method of accounting for income tax purposes. Installment income of $3,000,000 will be collected in the following years when the enacted tax rates are: Collection of Income Enacted Tax Rates 2020 $300,000 25% 2021 600,000 20% 2022 900,000 20% 2023 1,200,000 15% The installment income is Dunn's only temporary difference. What amount should be included in the deferred income tax liability in Dunn's December 31, 2020 balance sheet? a. $480,000 b. $555,000 c. $675,000 d. $750,000