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Lewis Associates, operates in an industry for which NOL carryback is not allowed, and had the following pretax income (loss) over its first three years of operations 2022 $1,000,000 2023 (1,800,000) 2024 1,500,000 For each year there were no deferred income taxes. The tax rate was 25% in all years. No valuation account was deemed necessary for the deferred tax asset as of December 31, 2023. What entry to deferred tax assets would Lewis make in 2024? Multiple Choice

Lewis Associates, operates in an industry for which NOL carryback is not allowed, and had the following pretax income (loss) over its first three years of operations 2022 $1,000,000 2023 (1,800,000) 2024 1,500,000 For each year there were no deferred income taxes. The tax rate was 25% in all years. No valuation account was deemed necessary for the deferred tax asset as of December 31, 2023. What entry to deferred tax assets would Lewis make in 2024? Multiple Choice

FINANCIAL ACCOUNTING
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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Intermediate Accoungting ll ch 16

16 Skipped Lewis Associates. operates in an industry for which NOL carryback is not allowed, and had the following pretax income (loss) over its first three years of operations 2022 $1,000,000 2023 (1,800,000) 2024 1,500,000 For each year there were no deferred income taxes. The tax rate was 25% in all years. No valuation account was deemed necessary for the deferred tax asset as of December 31, 2023. What entry to deferred tax assets would Lewis make in 2024? Multiple Choice O O Credit of $375,000 Credit of $300,000 No debit or credit to deferred tax assets Credit of $75,000
Transcribed Image Text:16 Skipped Lewis Associates. operates in an industry for which NOL carryback is not allowed, and had the following pretax income (loss) over its first three years of operations 2022 $1,000,000 2023 (1,800,000) 2024 1,500,000 For each year there were no deferred income taxes. The tax rate was 25% in all years. No valuation account was deemed necessary for the deferred tax asset as of December 31, 2023. What entry to deferred tax assets would Lewis make in 2024? Multiple Choice O O Credit of $375,000 Credit of $300,000 No debit or credit to deferred tax assets Credit of $75,000
18 Skipped Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences reported first on: (1) (2) (3) (4) Income Statement Revenue $ 22,000 $ 15,400 $ 15,400 Accounting income Temporary differences: Income statement first: Expense Revenue Expense Tax return first: Revenue Expense Taxable income $ 22,000 $ 22,000 Required: For each situation, determine the taxable income assuming pretax accounting income is $100,000. Note: Amounts to be deducted should be indicated by a minus sign. $ Tax Return Revenue $ 22,000 (1) 0 $ (2) Expense 0 $ $ 10,400 (3) 0 $ (4) 0
Transcribed Image Text:18 Skipped Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences reported first on: (1) (2) (3) (4) Income Statement Revenue $ 22,000 $ 15,400 $ 15,400 Accounting income Temporary differences: Income statement first: Expense Revenue Expense Tax return first: Revenue Expense Taxable income $ 22,000 $ 22,000 Required: For each situation, determine the taxable income assuming pretax accounting income is $100,000. Note: Amounts to be deducted should be indicated by a minus sign. $ Tax Return Revenue $ 22,000 (1) 0 $ (2) Expense 0 $ $ 10,400 (3) 0 $ (4) 0
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