In 2023, Mini reports $800,000 of pretax book net income. Mini did not recognize any bad debt expense for book purposes in 2023 but did deduct $15,000 in bad debt expense for tax purposes. Mini reports no other temporary or permanent book - tax differences. The applicable U.S. Federal corporate income tax rate is 21%, and Mini earns an after-tax rate of return on capital of 4%. For 2023, compute Mini's current income tax benefit or expense.

In 2023, Mini reports $800,000 of pretax book net income. Mini did not recognize any bad debt expense for book purposes in 2023 but did deduct $15,000 in bad debt expense for tax purposes. Mini reports no other temporary or permanent book - tax differences. The applicable U.S. Federal corporate income tax rate is 21%, and Mini earns an after-tax rate of return on capital of 4%. For 2023, compute Mini's current income tax benefit or expense.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

In 2023, Novak Inc. reported pretax accounting income of $129,100. In 2024, the company had a pretax accounting income of $57,100. In 2025, the company had pretax losses of $205,800. The following year, the company's pretax accounting income was $169,600. Income for tax purposes was the same as for accounting for all years. Novak's tax rate was 25% for 2023 and 2024, 28% for 2025 and 26% for 2026 and subsequent years. The tax rates were all enacted by the beginning of 2023. Prepare the journal entries for the years 2023 to 2026 to record income taxes. Assume that Novak's policy is to carry back any tax losses first, and that at the end of 2025, the loss carryforward benefits are judged more likely than not to be realized in the future. Novak follows IFRS. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order…
Sherrod, Incorporated, reported pretax accounting income of $92 million for 2024. The following information relates to differences between pretax accounting income and taxable income: a. Income from installment sales of properties included in pretax accounting income in 2024 exceeded that reported for tax purposes by $6 million. The installment receivable account at year-end 2024 had a balance of $8 million (representing portions of 2023 and 2024 installment sales), expected to be collected equally in 2025 and 2026. b. Sherrod was assessed a penalty of $3 million by the Environmental Protection Agency for violation of a federal law in 2024. The fine is to be paid in equal amounts in 2024 and 2025. c. Sherrod rents its operating facilities but owns one asset acquired in 2023 at a cost of $104 million. Depreciation is reported by the straight-line method, assuming a four-year useful life. On the tax return, deductions for depreciation will be more than straight-line depreciation the…
Give me correct answer with explanation..j
In 2019, Mini reports $1,503,600 of pretax book net income. Mini did not deduct any bad debt expense for book purposes in 2019 but did deduct $132,900 in bad debt expense for tax purposes. Mini reports no other temporary or permanent differences. Assuming that the pertinent U.S. Federal corporate income tax rate is 21%, and Mini earns an after-tax rate of return on capital of 8%. For 2019, compute Mini's total income tax expense, current income tax expense, and deferred income tax expense. If required, round your answers to nearest dollar. a. Current income tax expense ____ b. Deferred income tax benefit ____ c. Total income tax expense ____
Violet Corporation reported a loss in 2022 of $610,000 and carried back the loss to the extent allowed. The company reported taxable income of $215,000 in 2020 and $245,000 in 2021. It has no permanent or temporary differences and its tax rate is 30%.Violet reported taxable income of $345,000 in 2023. What is the necessary journal entry for 2023? Group of answer choices Income Tax Expense 183,000 Income Tax Payable 138,000 Deferred Tax Asset 45,000 Income Tax Expense 103,500 Income Tax Payable 58,500 Deferred Tax Asset 45,000 Income Tax Refund Receivable 138,000 Deferred Tax Asset 45,000 Income Tax Benefit 183,000 Income Tax Refund Receivable 58,500 Deferred Tax Asset 45,000 Income Tax Benefit 103,500
In 2022 Charmed, Inc. recorded book income of $420,000. The company's only temporary difference relates to a $66,000 installment sale that it recorded for book purposes; there are no permanent differences. Charmed anticipates receiving payments equally over the following three years. The current enacted tax rate in 2022 is 39%. The substantively enacted tax rates for the following three years are 34%, 39%, and 47%, respectively.Under IFRS, what deferred tax amount should Charmed record for this temporary difference? Group of answer choices $31,020 $26,400 $24,640 $25,740
1. Dunder Mifflin Inc. had one temporary difference in 2022 because their tax depreciation deduction exceeded their book depreciation expense by $74. Dunder Mifflin's pretax financial income is $1204 in 2022 and its tax rate is 20%. The company had no prior deferred tax balance. Dunder Mifflin's journal entry at the end of 2022 will involve: a. A credit to Income Tax Expense of $240.80 b. A debit to Deferred Tax Asset of $14.80 c. A credit to Deferred Tax Liability of $14.80 d. A credit to Income Tax Payable of $240.80
In the year 2019, a corporation made $18.5 Million in revenue, $2.4 Million of operating expenses, and depreciation expenses of $7.5 Million. The state income tax rate is 9% and the federal income tax rate is 21%. How much (a) state income tax, and (b) federal income tax will this corporation pay in this tax year? Assume that the state income tax is a tax-deductable expence when filing federal income tax. The approximate state income tax is $ Million (Round to three decimal places.) The approximate federal tax is $ Million. (Round to three decimal places.) The combined effective income tax rate is%. (Round to the nearest decimal.) The ATCF for the year 2019 is $ Million. (Round to three decimal places.) 31-
Ashvin
Greenville Industries uses the accrual basis to account for all sales transactions. Sales for 2022 total $500,000. Included in this amount is $70,000 in receivables from sales on installment. Installment sales are considered revenue for book purposes, but not for tax purposes. Operating expenses total $170,000 and are treated the same for book and tax purposes. Assuming a 40% tax rate, what is the amount of Greenville's deferred tax asset or liability? OA. $14,000 deferred tax liability B. $28,000 deferred tax liability OC. $28,000 deferred tax asset OD. $14,000 deferred tax asset
Birdcallington Ltd. is a CCPC that earns $200,000 in active taxable income in 2014, all of which is earned within Canada. Calculate their taxes owing assuming that no corporations are associated with them and provincial taxes are 8% on all forms of income. (ensure you use the long form method - including showing the small business deduction, generate rate reduction, etc. if relevant).
Martinez Ltd. made four quarterly payments of $4,000 each to the Receiver General for Canada during 2023 as instalment payments on its estimated 2023 corporate tax liability. At year end, Martinez's controller completed the company's 2023 tax return, which showed income tax owing of $10,300 on its 2023 income. (a) Your answer is incorrect. Prepare the adjusting year-end entry to recognize the 2023 income tax. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Account Titles and Explanation Income Tax Receivable Income Tax Payable Debit 4000 Credit Anna