Exercise 16-10 (Algo) Calculate income tax amounts under various circumstances; financial statementeffects [LO16-2, 16-3]Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts producedby temporary differences:($ in thousands)Taxable incomeFuture deductible amountsFuture taxable amounts.Balance(s) at beginning of the year:Deferred tax assetDeferred tax liabilityThe enacted tax rate is 25%.Required:Situation1234$ 112$ 244$ 252$ 34416202016165621682For each situation, determine the following:Note: Enter your answers in thousands rounded to one decimal place (i.e. 1,200 should be entered as 1.2). Negative amountsshould be indicated by a minus sign. Leave no cell blank, enter "O" wherever applicable.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.Situation123

Deferred tax asset: The deferred tax asset is created when the taxes to be paid as per income tax…

Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: Taxable income Future taxable amounts Future deductible amounts Balance(s) at beginning of the year: Deferred tax asset Deferred tax liability ($ in thousands) Situation 1 2 3 4 $ 112 $ 244 $ 252 $ 344 16 20 20 16 16 56 2 16 8 2

Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: Taxable income Future taxable amounts Future deductible amounts Balance(s) at beginning of the year: Deferred tax asset Deferred tax liability ($ in thousands) Situation 1 2 3 4 $ 112 $ 244 $ 252 $ 344 16 20 20 16 16 56 2 16 8 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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The following table shows tax due for the given taxable income level for a single taxpayer. Taxable income Tax due $97,000 $97,050 $97,100 $97,150 $97,200 $21,913 $21,927 $21,941 $21,955 $21,969 (a) Show that the data in the table are linear. For every change of $50 in the taxable income there is constant change of $ 1.00 in the tax due. These data exhibit a constant rate of change and are linear. (b) How much additional tax is due on each dollar over $97,000? (Round your answer to the nearest cent.) per dollar (c) What would you expect for your tax due if you had a taxable income of $97,000? 24 What would you expect for your tax due if you had a taxable income of $98,000? $ (d) Find a linear formula that gives tax due T if your income is A dollars over $97,000. (Round equation parameters to two decimal places.) T =
Single-Schedule X If taxable income is: Over- $ 0 11,000 44,725 95,375 182,100 231,250 income is: Over- $ But not over- $ 11,000 44,725 95,375 182,100 231,250 578,125 0 22,000 89,450 190,750 364,200 462,500 693,750 But not over- The tax is: $ 22,000 89,450 190,750 364,200 462,500 693,750 ****** 10% $ 1,100.00+ 12% 5,147.00 +22% 16,290.00+ 24% 37,104.00+ 32% 52,832.00+ 35% 578,125 174,238.25 + 37% Married filing jointly or Qualifying widow(er)-- Schedule Y-1 If taxable The tax is: ......... 10% $ 2,200.00 +12% 10,294.00+ 22% 32,580.00 24% 2023 Tax Rate Schedules 74,208.00 + 32% 105,664.00+ 35% 186,601.50 +37% of the amount over- $ $ 0 11,000 44,725 95,375 182,100 231,250 578,125 of the amount over- 0 22,000 89,450 190,750 364,200 462,500 693,750 Head of household-Schedule Z If taxable income is: Over- $ 0 15,700 59,850 95,350 If taxable income is: Over- $ But not over- 0 11,000 44,725 95,375 182,100 231,250 346,875 $ 15,700 59,850 95,350 182,100 231,250 578,100. 182,100 231,250 578,100…
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
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In Step 1 the income tax expense of $8,750,000 is correct. The deferred tax liability and income tax payable are incorrect. In Step 2 the net income is correct.
Vishal
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
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