P19-1 (LO1,2,4) EXCEL (Three Differences, No Beginning Deferred Taxes, Multiple Rates) The following information is available for Remmers Corporation for 2017. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $120,000. This differ- ence will reverse in equal amounts of $30,000 over the years 2018–2021. 2. Interest received on municipal bonds was $10,000. 3. Rent collected in advance on January 1, 2017, totaled $60,000 for a 3-year period. Of this amount, $40,000 was reported as unearned at December 31, 2017, for book purposes. 4. The tax rates are 40% for 2017 and 35% for 2018 and subsequent years. 5. Income taxes of $320,000 are due per the tax return for 2017. 6. No deferred taxes existed at the beginning of 2017.

P19-1 (LO1,2,4) EXCEL (Three Differences, No Beginning Deferred Taxes, Multiple Rates) The following information is available for Remmers Corporation for 2017. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $120,000. This differ- ence will reverse in equal amounts of $30,000 over the years 2018–2021. 2. Interest received on municipal bonds was $10,000. 3. Rent collected in advance on January 1, 2017, totaled $60,000 for a 3-year period. Of this amount, $40,000 was reported as unearned at December 31, 2017, for book purposes. 4. The tax rates are 40% for 2017 and 35% for 2018 and subsequent years. 5. Income taxes of $320,000 are due per the tax return for 2017. 6. No deferred taxes existed at the beginning of 2017.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 47P

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Question

See attached picture

A. Compute taxable income for 2017

B. Compute pretax financial income for 2017

P19-1 (LO1,2,4) EXCEL (Three Differences, No Beginning Deferred Taxes, Multiple Rates) The following information is
available for Remmers Corporation for 2017.
1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $120,000. This differ-
ence will reverse in equal amounts of $30,000 over the years 2018–2021.
2. Interest received on municipal bonds was $10,000.
3. Rent collected in advance on January 1, 2017, totaled $60,000 for a 3-year period. Of this amount, $40,000 was reported as
unearned at December 31, 2017, for book purposes.
4. The tax rates are 40% for 2017 and 35% for 2018 and subsequent years.
5. Income taxes of $320,000 are due per the tax return for 2017.
6. No deferred taxes existed at the beginning of 2017.

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(Three Differences, No Beginning Deferred Taxes, Multiple Rates) The following information is available for Remmers Corporation for 2017.1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $120,000. This difference will reverse in equal amounts of $30,000 over the years 2018–2021.2. Interest received on municipal bonds was $10,000.3. Rent collected in advance on January 1, 2017, totaled $60,000 for a 3-year period. Of this amount, $40,000 was reported as unearned at December 31, 2017, for book purposes.4. The tax rates are 40% for 2017 and 35% for 2018 and subsequent years.5. Income taxes of $320,000 are due per the tax return for 2017.6. No deferred taxes existed at the beginning of 2017.Instructions(a) Compute taxable income for 2017.(b) Compute pretax financial income for 2017.(c) Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2017 and 2018. Assume taxable income was…
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The following information is available for Remmers Corporation for 2020. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $120,000. This difference will reverse in equal amounts of $30,000 over the years 2021–2024. 2. Interest received on municipal bonds was $10,000. 3. Rent collected in advance on January 1, 2020, totaled $60,000 for a 3-year period. Of this amount, $40,000 was reported as unearned at December 31, 2020, for book purposes. 4. The tax rates are 20% for 2020 and 17% for 2021 and subsequent years. 5. Income taxes of $160,000 are due per the tax return for 2020. 6. No deferred taxes existed at the beginning of 2020. Instructions a. Compute taxable income for 2020. b. Compute pretax financial income for 2020. c. Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2020 and 2021. Assume taxable income was $480,000 in 2021. d. Prepare the…
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Please do not give solution in image format ?.
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