Xenun Inc. uses the accrual method ofaccounting for financial reporting purposesand appropriately uses the installmentmethod of accounting for income taxpurposes. Profits of $1,200,000 recognized forbooks in 2020 will be collected in thefollowing years:Collection of Profits$200,000$400,000202120222023$600,000The enacted tax rate is 30% for 2020 and2021. The enacted tax rate is 35% for 2022and 2023.Prepared the necessary journal entries for2020, 2021, 2022, and 2023.

Journal : It is the book where all the business transactions are recorded at first by way of debit…

Answered: Inc. use ethod of accounting for…

Inc. use ethod of accounting for financial reporting purposes and appropriately uses the installment method of accounting for income tax purposes Profits of $1.200 000 recognized fr

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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Ross Martin arrived at the following tax information: Tax Information $ 56,725 Gross salary Interest earnings 225 Dividend income 105 Standard deduction 12,000 11,290 1,400 Itemized deductions Adjustments to income What amount would Ross report as taxable income? Taxable income
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Eight independent situations are described below. Each involves future deductible amounts and/or future taxable amounts: 1. 2. 3. 4. 5. 6. 7. 8. ($ in millions) Temporary Differences Reported First on: The Income Statement The Tax Return Revenue $22 7 8 17 17 17 Expense $ 22 2222 Situations Taxable Income 1 $ 122 2 3 4 5 6 Revenue $22 17 7 Expense $22 Required: For each situation, determine taxable income, assuming pretax accounting income is $120 million. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). 12 12
Which of these is reported on Schedule M-1, Reconciliation of Income (Loss) per Books With Income (Loss) per Return? $347 of royalties reported on the books this year and included on Schedule K. $673 of foreign taxes paid reported on the books this year and included on Schedule K. $1,234 of ordinary dividend income included on Schedule K and recorded on the books this year. $1,679 of capital gain from the sale of collectibles included on Schedule K and not recorded on the books this year.
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Determine taxable income in each of the following independent cases. In all cases, the company was formed in 2012, was very profitable in all years prior to 2017, and had retained earnings of $1,000,000 at the end of 2017. Required: In 2018, Company A has taxable income of $60,500 prior to consideration of any net operating loss. In 2017, the company incurred a net operating loss of $10,200. It did not elect to waive the carryback period. Determine 2018 taxable income. In 2018, Company B has taxable income of $50,400 prior to consideration of any net operating loss. In 2017, the company incurred a net operating loss of $20,300. It elected to waive the carryback period. Determine 2018 taxable income. In 2021, Company C has taxable income of $35,350 prior to consideration of any net operating loss. In 2020, the company incurred a net operating loss of $30, 320 and elected to forgo the carryback period. Determine 2021 taxable income. In 2021, Company D has taxable income of $35,350 prior…
What would be the answer to problem (11) if a consolidated tax return were filed?a. –0–b. $300c. $1,500d. $7,500
1 Ross Martin arrived at the following tax information: Tax Information $ 58,610 Gross salary Interest earnings Dividend income 5 290 polnts 235 Standard deduction 12,000 11,420 2,050 Skipped Itemized deductions Adjustments to income еВook What amount would Ross report as taxable income? Hint Taxable income Print References
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