Prance, Inc., earns a pretax book net income of $800,000 in 2016. Prance acquires a depreciable asset that year, and first-year tax depreciation exceeds book depreciation by $80,000. Prance reported no other temporary or permanent book-tax differences. Assuming that the relevant U.S. tax rate is 35%, compute Prance's total income tax expense, current income tax expense, and deferred income tax expense.(general Account)

Prance, Inc., earns a pretax book net income of $800,000 in 2016. Prance acquires a depreciable asset that year, and first-year tax depreciation exceeds book depreciation by $80,000. Prance reported no other temporary or permanent book-tax differences. Assuming that the relevant U.S. tax rate is 35%, compute Prance's total income tax expense, current income tax expense, and deferred income tax expense.(general Account)

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter14: Taxes On The Financial Statements

Section: Chapter Questions

Problem 20CE

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Prance, Inc., earned pretax book net income of $1,693,000 in 2020. Prance acquires a depreciable asset that year, and first-year tax depreciation exceeds book depreciation by $169,300. Prance reported no other temporary or permanent book-tax differences. The pertinent U.S. Federal corporate income tax rate is 21% and Prance earns an after-tax rate of return on capital of 8%. If required, round your answers to the nearest dollar. Compute Prance's current income tax expense for the year.
Prance, Inc., earned pretax book net income of $1,265,000 in 2020. Prance acquires a depreciable asset that year, and first-year tax depreciation exceeds book depreciation by $126,500. Prance reported no other temporary or permanent book-tax differences. The pertinent U.S. Federal corporate income tax rate is 21%, and Prance earns an after-tax rate of return on capital of 8%. Enter below Prance's 2020 deferred tax expense and any deferred tax asset or liability. If required, round your answer to nearest whole value. Table in image attached
Prance, Inc., earned pretax book net income of $800,000 in 2021. Prance acquired a depreciable asset that year, and first-year tax depreciation exceeded book depreciation by $80,000. Prance reported no other temporary or permanent book-tax differences. The pertinent U.S. Federal corporate income tax rate is 21%, and Prance earned an after-tax rate of return on capital of 4%. Enter below Prance's 2021 deferred tax benefit or expense and any deferred tax asset or liability. What is the Deferred tax liability?
Prance, Inc., earns pretax book net income of $800,000 in 2019. Prance acquires a depreciable asset that year, and first-year tax depreciation exceeds book depreciation by $80,000. Prance reported no other temporary or permanent book-tax differences. The pertinent U.S. tax rate is 21%, and Prance earns an after- tax rate of return on capital of 8%. Compute Prance’s current income tax expense for the year.
Crystal Critters, Inc., a U.S. GAAP reporter, has the deferred tax assets and liabilities presented below: Item Classification on the Balance Sheet of Related Account Deferred Tax Associated with Item Excess of warranty expense over warranty deductions Current $74,000 Asset Accelerated depreciation for tax purposes Noncurrent $84,000 Liability Installment sales receivable Current $44,000 Liability Contingent liability Current $34,000 Asset Assuming it meets the conditions to net assets and liabilities, how will the company report deferred taxes on the balance sheet? Group of answer choices current asset: deferred tax asset $108,000; noncurrent liability: deferred tax liability $128,000 noncurrent liability: deferred tax liability $20,000 current liability: deferred tax liability $64,000; noncurrent liability: deferred tax liability $84,000 current liability: deferred tax liability $44,000; noncurrent asset: deferred tax asset $84,000
For the year ended December 31, 2015, Pering Co. reported pretax financial income of $550,000. Its current tax expense was $144,000. Pering reported a difference between pretax financial statement income and taxable income. This difference is due to accelerated depreciation for income tax purposes. Pering?s effective income tax rate is 30% and Pering made estimated tax payments during 2015 of $75,000. What amount did Paring report as taxable income for 2015? a. $405,000 b. $475,000 c. $480,000 d. $550,000
On its year 1 financial statements, Seatax Corporation, an accrual-method taxpayer, reported federal income tax expense of $570,000. On its year 1 tax return, it reported a tax liability of $650,000. During year 1, Seatax made estimated tax payments of $700,000. What book-tax difference, if any, associated with its federal income tax expense should Seatax have reported when computing its year 1 taxable income? Is the difference favorable or unfavorable? Is it temporary or permanent? Year 1 Book-tax Difference Favorable or Unfavorable Temporary or Permanent
Pretax accounting income for the year ended December 31, 2021, was $54 million for Truffles Company. Truffles' taxable income was $69 million. This was a result of differences between straight-line depreciation for financial reporting purposes and accelerated depreciation for tax purposes. The enacted tax rate is 21% for 2021 and 31% thereafter. What amount should Truffles report as the current portion of income tax expense for 2021?
What is the 2016 net income?
USCO incurred $110,000 in interest expense for the current year. The tax book value of USCO's assets generating foreign-source income is $5,500,000. The tax book value of USCO's assets generating U.S.-source income is $55,000,000. How much of the interest expense is allocated and apportioned to foreign-source income? Do not round intermediate computations but if required, round your final answer to the nearest dollar. %24
Qw.18.
If the alternative minimum tax provisions are ignored, what amount should Packer report as taxable income?