GENERAL ACCOUNT - 53Mitchell Corporation prepared the following reconciliationfor its first year of operations:Pretax financial income for 2018Tax exempt interestOriginating temporary differenceTaxable income$ 18,00,000(1,50,000)(3,50,000)$ 13,00,000The temporary difference will reverse evenly over the nexttwo years at an enacted tax rate of 40%. The enacted taxrate for 2018 is 35%.In Mitchell's 2018 income statement, what amount shouldbe reported for total income tax expense?A. $690,000B. $630,000C. $595,000D. $455,000

Step 1: Calculate the Current Tax ExpenseThe current tax expense is based on the taxable income for…

Answered: GENERAL ACCOUNT - 53 Mitchell…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter14: Taxes On The Financial Statements

Section: Chapter Questions

Problem 51P

See similar textbooks

Similar questions

Comprehensive Colt Company reports pretax financial income of 143,000 in 2019. In addition to pretax income from continuing operations (of which revenues are 295,000), the following items are included in this pretax income: Colts taxable income totals 93,000 in 2019. The difference between the pretax financial income and the taxable income is due to the excess of tax depreciation over financial depreciation on assets used in continuing operations. At the beginning of 2019, Colt had a retained earnings balance of 310.000 and a deferred tax liability of 8,100. During 2019, Colt declared and paid dividends of 48,000. It is subject to tax rates of 15% on the first 50,000 of income and 30% on income in excess of 50,000. Based on proper interperiod tax allocation procedures, Colt has determined that its 2019 ending deferred tax liability is 14,100. Required: 1. Prepare a schedule for Colt to allocate the total 2019 income tax expense to the various components of pretax income. 2. Prepare Colts income tax journal entry at the end of 2019. 3. Prepare Colts 2019 income statement. 4. Prepare Colts 2019 statement of retained earnings. 5. Show the related income tax disclosures on Colts December 31, 2019, balance sheet.
Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and taxable income for 2020. The prior period adjustment was the result of an error in calculating bad debt expense for 2019. The current tax rate is 30%, and no change in the tax rate has been enacted for future years. When the company applies intraperiod income tax allocation, the prior period adjustment will be shown on the: a. income statement at 12,000 b. income statement at 8,400 (net of 3,600 income taxes) c. retained earnings statement at 12,000 d. retained earnings statement at 8,400 (net of 3,600 income taxes)
Rhodes Corporations financial statements are shown after part f. Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions. a. What is the net operating profit after taxes (NOPAT) for 2020? b. What are the amounts of net operating working capital for both years? c. What are the amounts of total net operating capital for both years? d. What is the free cash flow for 2020? e. What is the ROIC for 2020? f. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.) Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)
A reconciliation of pretax financial statement income to taxable income is shown below for See Shipping for the year ended December 31, 2018, its first year of operations. The income tax rate is 40%. Pretax accounting income (income statement) $ 600,000 Installment income taxable upon receipt next year (30,000 ) Warranty expense in excess of deductible amount 5,000 Tax depreciation in excess of income statement amount (20,000 ) Taxable income (tax return) $ 555,000 What amount should See report as a noncurrent item related to deferred income taxes in its 2018 balance sheet? A) Deferred income tax asset of $18,000. B) Deferred income tax liability of $20,000. C) Deferred income tax liability of $45,000. D) Deferred income tax liability of $18,000
12) Ehrlich Corporation prepared the following reconciliation for its first year of operations: Pretax financial income for 2021 $2,550,000 Excess depreciation expense (450,000) Taxable income $2,100,000 The temporary difference will reverse evenly over the next two years at an enacted tax rate of 30%. The enacted tax rate for 2021 is 20%. Prepare the journal entry for the income taxes for 2021
Caramel Corp. prepared the following reconciliation of income per books with income per tax return for the year ended December 31, 2021: Book income before income taxes 2,700,000.00 Add temporary difference Installment revenue which will reverse in 2022 240,000.00 Deduct temporary difference Depreciation expense which will reverse in equal amounts in each of the next four years (960,000.00) Taxable income 1,980,000.00 Caramel Corp effective income tax rate is 25% for 2021. What amount should Caramel Corp report in its 2021 income statement as the current provision for income tax expense?
A company prepared the following reconciliation for 2021: Pretax financial income for 2021 $719,000 Originating temporary difference 19,000 Permanent difference (38,000) Taxable income $xxxx (Figure this amount out on your own. Note: the parentheses outside the permanent difference mean subtraction). The temporary difference will reverse evenly over the next two years (i.e., 2022 and 2023). The enacted income tax rates are…
Need Expert Help
9. A reconciliation of Gentry Company's pretax accounting income with its taxable income for 2022, its first year of operations, is as follows:Pretax accounting income - P3,000,000Excess tax depreciation - (90,000)Taxable income - P2,910,000The excess tax depreciation will result in equal net taxable amounts in each of the next three years. Enacted tax rates are 40% in 2022, 35% in 2023 and 2024, and 30% in 2025. The total deferred tax liability to be reported on Gentry's statement of financial position at December 31, 2022, is a.P27,000. b.P36,000. c.P30,000. d.P31,500.
Estimated tax information: XYZ made four equal estimated tax payments totaling $360,000 ($90,000 per quarter). For purposes of estimated tax liabilities, assume XYZ was in existence in 2023 and that in 2023 it reported a tax liability of $500,000. During 2024, XYZ determined its taxable income at the end of each of the first three quarters as follows: Quarter-end Cumulative taxable income (loss) First $ 405,000 Second $ 1,105,000 Third $ 1,425,000 Finally, assume that XYZ is not a large corporation for purposes of estimated tax calculations. Note: Do not round intermediate calculations. Round your answers to the nearest dollar amount. e. Determine the quarters for which XYZ is subject to underpayment of estimated tax penalties. Actual Taxable Income = $1,888,700 Actual IncomeTax Liability = $396,627 Actual Tax Rate = 21% All I need is the Estimated Tax Payment Under Annualized Method for 4th Quarter
Hello tutor can you answer this account query?
6

SEE MORE QUESTIONS

Recommended textbooks for you

SWFT Corp Partner Estates Trusts

Accounting

ISBN:

9780357161548

Author:

Raabe

Publisher:

Cengage

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

SWFT Essntl Tax Individ/Bus Entities 2020

Accounting

ISBN:

9780357391266

Author:

Nellen

Publisher:

Cengage

SWFT Corp Partner Estates Trusts

Accounting

ISBN:

9780357161548

Author:

Raabe

Publisher:

Cengage

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

SWFT Essntl Tax Individ/Bus Entities 2020

Accounting

ISBN:

9780357391266

Author:

Nellen

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

SEE MORE TEXTBOOKS