Hi expert please provide correct answer general accounting question Pierce Corp., an accrual-basis, calendar-year C Corporation,had the following 2009 receipts:- 2010 advance rental payments for a lease ending in 2011:$250,000- Lease cancellation payment from a 5-year lease tenant:$100,000- Pierce had no restrictions on the use of the advance rentalpayments and renders no services connection with the rentalincome.What amount of gross income should Pierce report on its2009 tax return?a. $350,000b. $250,000c. $100,000d. $0

Step 1: Gross incomeIt is the amount that is accumulation of the income earned from all the sources…

Answered: Pierce Corp., an accrual-basis,…

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 2018, Ryan Management collected rent revenue for 2019 tenant coccupancy. For financial reporting, the rent is recorded as deferred revenue and then reconized as income in the period tenants occupy rental property, but for income tax reporting it is taxed when collected. the deferred portion of the rent collected in 2018 was 65 million. taxable income is 190 million. no temporary differences existed at the beginning of the year, and the tax rate is 40 percent. suppose the deferred portion of the rent collected was 55 million at the end of 2019. taxable income is 210 million. prepare the appropriate journal entry to record income taxes?
In 2021, Ryan Management collected rent revenue for 2022 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy rental property. For tax reporting, the rent is taxed when collected in 2021. The deferred portion of the rent collected in 2021 was $194.0 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Suppose the deferred portion of the rent collected was $76 million at the end of 2022. Taxable income is $760 million. Prepare the appropriate journal entry to record income taxes in 2022. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)
In 2021, Ryan Management collected rent revenue for 2022 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy rental property. For tax reporting, the rent is taxed when collected in 2021. The deferred portion of the rent collected in 2021 was $130.0 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Suppose the deferred portion of the rent collected was $60 million at the end of 2022. Taxable income is $520 million. Prepare the appropriate journal entry to record income taxes in 2022.
Arnold Industries has pretax accounting income of $34 million for the year ended December 31, 2018. The tax rate is 40%. The only difference between accounting income and taxable income relates to an operating lease in which Arnold is the lessee. The inception of the lease was December 28, 2018. An $4 million advance rent payment at the inception of the lease is tax-deductible in 2018 but, for financial reporting purposes, represents prepaid rent expense to be recognized equally over the four-year lease term. Required: 1. Complete the following table given below and prepare the appropriate journal entry to record Arnold's income taxes for 2018. 2. Prepare the appropriate journal entry to record Arnold's income taxes for 2019. Pretax accounting income was $42 million for the year ended December 31, 2019. 3. Assume a new tax law is enacted in 2019 that causes the tax rate to change from 40% to 30% beginning in 2020. Complete the following table given below and prepare the appropriate…
In 2021, Ryan Management collected rent revenue for 2022 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy rental property. For tax reporting, the rent is taxed when collected in 2021. The deferred portion of the rent collected in 2021 was $106 million. Taxable income is $460 million in 2021. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Prepare the appropriate journal entry to record income taxes in 2021.
In 2021, Ryan Management collected rent revenue for 2022 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy rental property. For tax reporting, the rent is taxed when collected in 2021. The deferred portion of the rent collected in 2021 was $94 million. Taxable income is $400 million in 2021. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Prepare the appropriate journal entry to record income taxes in 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) No 1 Transaction 1 Income tax expense Deferred tax asset Income tax payable Answer is not complete. General Journal Debit 52.5 Credit 50.0 2.5
Arnold Industries has pretax accounting income of $160 million for the year ended December 31, 2024. The tax rate is 25%. The only difference between accounting income and taxable income relates to an operating lease in which Arnold is the lessee. The inception of the lease was December 28, 2024. An $136 million advance rent payment at the inception of the lease is tax-deductible in 2024 but, for financial reporting purposes, represents prepaid rent expense to be recognized equally over the four-year lease term.
Arnold Industries has pretax accounting income of $88 million for the year ended December 31, 2021. The tax rate is 25%. The only difference between accounting income and taxable income relates to an operating lease in which Arnold is the lessee. The inception of the lease was December 28, 2021. An $64 million advance rent payment at the inception of the lease is tax-deductible in 2021 but, for financial reporting purposes, represents prepaid rent expense to be recognized equally over the four-year lease term. Required:1. Complete the following table given below and prepare the appropriate journal entry to record Arnold’s income taxes for 2021.2. Prepare the appropriate journal entry to record Arnold’s income taxes for 2022. Pretax accounting income was $120 million for the year ended December 31, 2022.3. Assume a new tax law is enacted in 2022 that causes the tax rate to change from 25% to 15% beginning in 2023. Complete the following table given below and prepare the appropriate…
Arnold Industries has pretax accounting income of $33 million for the year ended December 31, 2016. The tax rate is 40%. The only difference between accounting income and taxable income relates to an operating lease in which Arnold is the lessee. The inception of the lease was December 28, 2016. An $8 million advance rent payment at the inception of the lease is tax-deductible in 2016 but, for financial reporting purposes, represents prepaid rent expense to be recognized equally over the four-year lease term. Required: 1. Determine the amounts necessary to record Arnold’s income taxes for 2016 and prepare the appropriate journal entry. 2. Determine the amounts necessary to record Arnold’s income taxes for 2017 and prepare the appropriate journal entry. Pretax accounting income was $50 million for the year ended December 31, 2017. 3. Assume a new tax law is enacted in 2017 that causes the tax rate to change from 40% to 30% beginning in 2018. Determine the amounts necessary to record…
Arnold Industries has pretax accounting income of $33 million for the year ended December 31, 2018. The taxrate is 40%. The only difference between accounting income and taxable income relates to an operating lease inwhich Arnold is the lessee. The inception of the lease was December 28, 2018. An $8 million advance rent payment at the inception of the lease is tax-deductible in 2018 but, for financial reporting purposes, represents prepaidrent expense to be recognized equally over the four-year lease term.Required:1. Determine the amounts necessary to record Arnold’s income taxes for 2018, and prepare the appropriate journal entry.2. Determine the amounts necessary to record Arnold’s income taxes for 2019, and prepare the appropriate journal entry. Pretax accounting income was $50 million for the year ended December 31, 2019.3. Assume a new tax law is enacted in 2019 that causes the tax rate to change from 40% to 30% beginning in2020. Determine the amounts necessary to record Arnold’s…
West Corp. leased a building and received the $36,000 annual rental payment on June 15, 2016. The beginning of the lease was July 1, 2016. Rental income is taxable when received. West’s tax rates are 30% for 2016 and 40% thereafter. West had no other permanent or temporary differences. West determined that no valuation allowance was needed. What amount of deferred tax asset should West report in its December 31, 2016, balance sheet? a. $ 5,400 b. $ 7,200 c. $10,800 d. $14,400
Lake Corp., an accrual-basis calendar-year corporation, had the following Year 1 receipts: Year 2 advanced rental payments where the lease ends in Year 2 $125,000 Lease cancellation payment from a 5-year lease tenant 50,000 Lake had no restrictions on the use of the advanced rental payments and renders no services. What amount of income should Lake report on its Year 1 tax return? O so O $50,000 O $125,000 O $175,000

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS