Marigold Inc. has a tax rate of 30% and reports the following pre-tax amounts in 2024: a loss from continuing operations of $500,000 ⚫ income from discontinued operations of $870,000, of which $220,000 is not taxable ⚫ an unrealized holding gain of $25,000 on investments accounted for at fair value through other comprehensive income (FV-OCI), which will be taxable as ordinary income when it is realized (a) Determine how and where the current tax expense or benefit will be reported for Marigold in 2024. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) ✓ : Continuing Operations Discontinued Operations $ OCI $ $ $ $ $ $ Total

Marigold Inc. has a tax rate of 30% and reports the following pre-tax amounts in 2024: a loss from continuing operations of $500,000 ⚫ income from discontinued operations of $870,000, of which $220,000 is not taxable ⚫ an unrealized holding gain of $25,000 on investments accounted for at fair value through other comprehensive income (FV-OCI), which will be taxable as ordinary income when it is realized (a) Determine how and where the current tax expense or benefit will be reported for Marigold in 2024. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) ✓ : Continuing Operations Discontinued Operations $ OCI $ $ $ $ $ $ Total

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

Teal Corp. has a deferred tax asset account with a balance of $78,400 at the end of 2024 due to a single cumulative temporary difference of $392,000. At the end of 2025, this same temporary difference has increased to a cumulative amount of $478,000. Taxable income for 2025 is $884,000. The tax rate is 20% for all years. No valuation account related to the deferred tax asset is in existence at the end of 2024. (a) Record income tax expense, deferred income taxes, and income taxes payable for 2025, assuming that it is more likely than not that the deferred tax asset will be realized. (List all debit entries before credit entries. Credit account titles are automatically indented when 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.) Account Titles and Explanation Debit Credit (b) Assuming that it is more likely than not that $17,200 of the deferred tax asset will not be realized, prepare the journal…
Sandhill Inc.'s only temporary difference at the beginning and end of 2024 is caused by a $3.63 million deferred gain for tax purposes for an installment sale of a plant asset, and the related receivable (only one-half of which is classified as a current asset) is due in equal installments in 2025 and 2026. The related deferred tax liability at the beginning of the year is $1,089,000. In the third quarter of 2024, a new tax rate of 20% is enacted into law and is scheduled to become effective for 2026. Taxable income for 2024 is $6,050,000, and taxable income is expected in all future years. (a) Determine the amount reported as a deferred tax liability at the end of 2024. Deferred tax liability tA
Provita Fish feed has a regular taxable income of $120000 in December 31, 2020. The company had $1300 tax-exempt interest on certain "private activity bonds" and $1200 intangible drilling cost on that year. The AMT adjustment apart from the Adjusted Current Earning (ACE) is ($5000) and Provita Fish feed's ACE for its current tax year is $110000. On the other hand, Provita had tax losses equal to $150,000, of which $25,000 were attributable to tax preference items. As Provita is a corporation, a regular corporate AMT exemption is required for Provita. Moreover, Provita had Foreign and Investment Tax Credits of $1600 on 2020. If the regular tax liability of Provita is $11500, what was the AMT of Provita for 2020?
Tommy Corporation reported a pretax financial income of P5,000,000 for the year ended December 31, 2019. The following items are included in the determination of the financial income: Provision for litigation loss which will become tax deductible when settled in the future, P300,000; Realized revenue that has yet to be received, P400,000; Other unearned revenue, P150,000; Dividend received from a domestic corporation, P100,000. If the tax rate is 32% for all years, what amount if total tax expense and current tax expense should Tommy report, respectively?
Crane Inc's only temporary difference at the beginning and end of 2024 is caused by a $3.72 million deferred gain for tax purposes for an installment sale of a plant asset, and the related receivable (only one-half of which is classified as a current asset) is due in equal installments in 2025 and 2026. The related deferred tax liability at the beginning of the year is $1.116,000. In the third quarter of 2024, a new tax rate of 20% is enacted into law and is scheduled to become effective for 2026. Taxable income for 2024 is $6,200,000, and taxable income is expected in all future years. (a) Determine the amount reported as a deferred tax liability at the end of 2024. Deferred tax liability
At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $100 million attributable to a temporary book-tax difference of $400 million in a liability for estimated expenses. At the end of 2021, the temporary difference is $304 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2021 is $720 million and the tax rate is 25%. Required:1. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that the deferred tax asset will be realized in full. ( 1 Journal Entry for - 2021 income taxes. 1 Journal Entry for valuation allowance for the end of 2021.) 2. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that only one-fourth of the deferred tax asset ultimately will be realized. ( 1 Journal Entry for - 2021 income taxes. 1 Journal Entry for valuation allowance for the end of 2021.)
At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $120 million attributable to a temporary book-tax difference of $480 million in a liability for estimated expenses. At the end of 2021, the temporary difference is $368 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2021 is $864 million and the tax rate is 25%. Required:1. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that the deferred tax asset will be realized in full.2. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that only one-fourth of the deferred tax asset ultimately will be realized.
Ayres Services acquired an asset for $116 million in 2018. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). For tax purposes the asset's cost is depreciated by MACRS. The enacted tax rate is 40%. Amounts for pretax accounting income, depreciation, and taxable income in 2018, 2019, 2020, and 2021 are as follows: (S in millions) 2019 $ 420 $ 440 $ 455 29.0 2018 2020 2021 $ 490 Pretax accounting income Depreciation on the income statement Depreciation on the tax return 29.0 29.0 29.0 (34.0) (42.0) (24.0) 415 $ 427 (16.0) $ 503 Taxable income $ 460 Required: Determine (a) the temporary book-tax difference for the depreciable asset and (b) the balance to be reported in the deferred tax liability account. (Leave no cell blank, enter "0" wherever applicable. Show all amounts as positive amounts. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) Beginning of 2018 End of…
CC corporation (a calendar-year C corporation) has a net operating loss (NOL) carryover to 2021 in the amount of $30,000. How much tax will SCC pay for 2021 if it reports taxable income from operations of $20,000 before considering loss carryovers under the following assumptions? (Leave no answer blank. Enter zero if applicable.) a. The NOL originated in 2017. SCC Taxable Income in 2021 b. The NOL originated in 2018. SCC Tax in 2021
At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $75 million attributable to a temporary book- tax difference of $300 million in a liability for estimated expenses. At the end of 2021, the temporary difference is $224 million. Payne has no other temporary differences. Taxable income for 2021 is $540 million and the tax rate is 25% Payne has a valuation allowance of $30 million for the deferred tax asset at the beginning of 2021. Required 1: Prepare the journal entry (s) to record Payne’s income taxes for 2021, assuming it is more likely than not that the deferred tax asset will be realized in full. Journal entry worksheet Record 2021 income taxes. Record valuation allowance for the end of 2021. Required 2: Prepare the journal entry (s) to record Payne’s income taxes for 2021, assuming it is more likely than not that only one-fourth of the deferred tax asset ultimately will be realized. (If no entry is required for a transaction/event,…
D E F G H (Deferred Tax Asset with and without Valuation Account) Nova Sci, Inc. has a deferred tax asset account with a balance of $255,000 at the end of 2024 due to a single cumulative temporary difference. At the end of 2025 this same temporary difference has decreased to a cumulative amount of $750,000. Taxable income for 2025 is $650,000. The tax rate is 20% for all years. No valuation account related to the deferred tax asset is in existence at the end of 2024. Instructions (a) Record income tax expense, deferred income taxes, and income taxes payable for 2025, assuming that it is more likely than not that the deferred tax asset will be realized. (b) Assuming that it is more likely than not that one-half of the deferred tax asset will not be realized, prepare the journal entry at the end of 2025 to record the valuation account. (b) NOTES & COMPUTATIONS AREA
EB Corporation, a C corporation, has a net short-term capital gain Of $ 65k and a net long-term capital loss of $250k during 2023. EB Corporation had taxable income from other sources of $720k Prior years' transactions included the following: 2019 2020 2021 2022 NET LTCG: $150K NET STCG: 560K NET STCG: $45K NET LTCG: $35K Compute the treatment of EB's capital gain or loss if any