GENERAL ACCOUNT - 11G Co. began its operations in January x1. At the endof the first year, G reported $340,000 income beforetaxes as financial income. However, they reported$320,000 as taxable income. The $20,000 differenceis due to their use of the accrual method for certainsales for financial reporting purposes and the use ofthe installment sale method for those sales for taxpurposes. The marginal tax rate is 34%. What is theamount of the income tax expense?

Step 1: Compute current year tax by multiplying the taxable income with the marginal tax rate as…

Answered: GENERAL ACCOUNT - 11 G Co. began its…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

ChapterMB: Model-building Problems

Section: Chapter Questions

Problem 12M

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In the current year, Madison Corporation had 50,000 of taxable income at a tax rate of 25%. During the year, Madison began offering warranties on its products and has a Warranty liability for financial reporting purposes of 5,000 at the end of the year. Warranty expenses are not deductible until paid for income tax purposes. Prepare the journal entry to record Madisons income taxes at the end of the year.
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.
hfg
Range Rover Inc. had taxable income of $152,000 for the year. The GAAP basis of accounts receivable (net) $9,600 less than the tax basis of accounts receivable. Assuming a tax rate of 25%, record the income tax journal entry on December 31. Assume zero beginning balances in deferred tax accounts Note: faline in a journal entry ant required for the transaction select N/A as the account names and leave the Dr. and Cr. answers blank (zero) Dr. Account Name Date Dec 31 income Tax Expose Income Tax Payate Deferred Tax Asset Tocesant income
Mami Co. computed a pre-tax financial income of 15,000,000 for the year ended Dec. 31, 201X. In preparing the tax return, the following differences are noted between financial income and taxable income. Non-deductible Expense 2,000,000 Non-taxable revenue 1,000,000 Estimated warranty cost that was recognized as expense in 200X but deductible for tax purposes when paid 1,500,000 Excess tax depreciation over financial depreciation 500,000 What is the current tax expense for 201X if the tax rate is 32%?
EFG & Co. started its business at the beginning of the current year. By end of first year operations, EFG reported P6,000,000 financial income before income tax and P5,100,000 taxable income. Breakdown of the P900,000 difference revealed that P500,000 is a permanent difference and P400,000 is a future taxable amount. Enacted tax rate is 30%. How much is the total income tax expense? a. 1,800,000 b. 1,950,000 c. 1,530,00 d. 1,650,000
For the year ended Dec. 31, 201X, Suga Dadi Co. reported pre-tax financial income of 12,000,000. Its taxable income was 14,000,000. The difference is due to rental received in advance. Rental income is taxable when received. The income tax rate is 32% and Suga Dadi Co. made estimated tax payment during of 1,000,000 in 201X. What should Suga Dadi Co. report as 201X total tax income expense?
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N1. Account
Grateful Enterprises had the following income before tax provision andeffective annual tax rate for the first three quarters of the current year: 1stQuarter - 5,000,000 (30%); 2nd Quarter - 6,000,000 (30%); 3rd Quarter-7,000,000 (25%). What amount should be reported as income taxexpense in the interim income statement for the third quarter?
1. Faye Faye Corporation's statement of financial performance for the year ended December 31, 20X2, shows pretax income of P 1,000,000. The following items are treated differently on the tax return and in the accounting records. Tax Return Accounting Records Rent income P 70,000 P 120,000 Depreciation Expense 280,000 220,000 Premiums on officers' life insurance 90,000 Faye Faye's rate for 20X2 is 30%. How much is the current tax expense for 20X2?
For the year ended December 31, year 1, Tyre Co. reported pretax financial statement income of $7,500,000. Its taxable income was $6,500,000. The difference is due to accelerated depreciation for income tax purposes. Tyre's effective income tax rate is 30%, and Tyre made estimated tax payments during year 1 of $900,000. 1. What amount should be reported as current tax expense for the current year? a. 2,250,000 b. 1,950,000 c. 1,050,000 d. 1,350,000 2. What amount should be reported as total income tax expense? a. 1,350,000 b. 1,950,000 c. 1,050,000 d. 2,250,000 3. What amount of income tax payable should be presented at year end? a. 2,250,000 b. 1,350,000 c. 1,950,000 d. 1,050,000

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