GinnyCo has pretax book and taxable income of $400,000 and reports a s100,000 income tax payable in the current year. GinnyCo has engaged in activities that it believes qualify for the research activities credit a general business tax credit of $40,000 that it cannot use this year, and its management believes that it is more likely than not that one-fourth of the credit carryforward will expire unused, a. Compute GinnyCo's income tax provision for the year, expressed as a Microsoft Excel formula. b. Construct the journal entry to report these items. JOURNAL DATE Description Post. Ref. Debit Credit Income tax payable Deferred tax asset

GinnyCo has pretax book and taxable income of $400,000 and reports a s100,000 income tax payable in the current year. GinnyCo has engaged in activities that it believes qualify for the research activities credit a general business tax credit of $40,000 that it cannot use this year, and its management believes that it is more likely than not that one-fourth of the credit carryforward will expire unused, a. Compute GinnyCo's income tax provision for the year, expressed as a Microsoft Excel formula. b. Construct the journal entry to report these items. JOURNAL DATE Description Post. Ref. Debit Credit Income tax payable Deferred tax asset

Name: Problem 3-44 (LO. 5)GinnyCo has pretax book and taxable income of $40
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Description: Problem 3-44 (LO. 5)GinnyCo has pretax book and taxable income of $400,000 and reports a s100,000 income tax payable in the current year. GinnyCo hasengaged in activities that it believes qualify for the research activities credit a general business

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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Matador Company is preparing its 2022 financial statements. Matador's bookkeeper has determined Income from Continuing Operations (ICO) but is not certain this number is accurate. Matador has a corporate tax rate of 30%. Use the following information to determine the adjustments, if any, to ICO. (Hint: if you are adjusting ICO, should the adjustments be pre-tax or net of tax?) If you need to increase ICO, enter your answer as a positive number; for instance: 3000 If you need to decrease ICO, enter your answer as a negative number; for instance: -3000 If you determine no change is needed to ICO; enter 0. Put your answers in the provided boxes. 1) During 2022, Matador declared preferred dividends of $70,000, paid $90,000 for dividends, and received $135,000 for dividends on available-for-sale equity securities. The bookkeeper did not include any of these when calculating ICO. Determine the adjustment to ICO. Matador has a corporate tax rate of 30%. 2) Over the past 4 years, Matador has…
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