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Required: 1. Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2024. 2. Determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2024. 3. Determine the income tax payable currently for the year ended December 31, 2024. 4. Prepare the journal entry to record income taxes for 2024.

Required: 1. Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2024. 2. Determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2024. 3. Determine the income tax payable currently for the year ended December 31, 2024. 4. Prepare the journal entry to record income taxes for 2024.

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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Corning-Howell reported taxable income in 2024 of $164 million. At December 31, 2024, the reported amount of some assets and liabilities in the financial statements differed from their tax bases as indicated below: Carrying Amount Assets Current Net accounts receivable Prepaid insurance Prepaid advertising Noncurrent Investments in equity securities (fair value)* Buildings and equipment (net) Liabilities Current Deferred subscription revenue Long-term Liability-compensated future absences $ 52 million 64 million 48 million 48 million 404 million. 56 million 638 million Tax Basis $56 million 0 0 Complete this question by entering your answers in the tabs below. 0 324 million *Gains and losses taxable when investments are sold. The total deferred tax asset and deferred tax liability amounts at January 1, 2024, vlere $178.25 million and $25 million, respectively. The enacted tax rate is 25% each year. Required: 1. Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2024. 2. Determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2024. 3. Determine the income tax payable currently for the year ended December 31, 2024. 4. Prepare the journal entry to record income taxes for 2024. Required 1 Required 2 Required 3 Required 4 Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2024. Note: Enter your answers in millions rounded to 2 decimal places (1.e., 5,500,000 should be entered as 5.50).
Transcribed Image Text:Corning-Howell reported taxable income in 2024 of $164 million. At December 31, 2024, the reported amount of some assets and liabilities in the financial statements differed from their tax bases as indicated below: Carrying Amount Assets Current Net accounts receivable Prepaid insurance Prepaid advertising Noncurrent Investments in equity securities (fair value)* Buildings and equipment (net) Liabilities Current Deferred subscription revenue Long-term Liability-compensated future absences $ 52 million 64 million 48 million 48 million 404 million. 56 million 638 million Tax Basis $56 million 0 0 Complete this question by entering your answers in the tabs below. 0 324 million *Gains and losses taxable when investments are sold. The total deferred tax asset and deferred tax liability amounts at January 1, 2024, vlere $178.25 million and $25 million, respectively. The enacted tax rate is 25% each year. Required: 1. Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2024. 2. Determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2024. 3. Determine the income tax payable currently for the year ended December 31, 2024. 4. Prepare the journal entry to record income taxes for 2024. Required 1 Required 2 Required 3 Required 4 Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2024. Note: Enter your answers in millions rounded to 2 decimal places (1.e., 5,500,000 should be entered as 5.50).
The total deferred tax asset and deferred tax liability amounts at January 1, 2024, were $178.25 million and $25 million, respectively The enacted tax rate is 25% each year. Required: 1. Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2024. 2. Determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2024. 3. Determine the income tax 4. Prepare the journal entry to record incly for the year ended December 31, 2024 2024 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2024. Note: Enter your answers in millions rounded to 2 decimal places (.e, 5,500,000 should be entered as 5.50). Deferred tax amounts ($ in millions Classification Amount Deferred tax ability Deferred tax asset Show Transcribed Text Reached The total deferred tax asset and deferred tax liability amounts at January 1, 2024, were $178.25 million and $25 million, respectively. The enacted tax rate is 25% each year. Required: 1. Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2024. 2. Determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2024 3. Determine the income tax payable currently for the year ended December 31, 2024. 4. Prepare the journal entry to record income taxes for 2024. Complete this question by entering your answers in the tabs below. The increase (decrease) at December 31, 2024 Required 1 Required 2 Required 3 Required 4 Determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2024. Note: Enter your answers in millions rounded to 2 decimal places (.e., 5,500,000 should be entered as 5.50). Decreases should be indicated with a minus sign. Show Transcribed Text Required 2 > ($in millions) Deferred tax liability Deferred tax asset <Required 1 sanataty compensated future absences "Gains and losses taxable when investments are sold. Required 3 > 638 million The total deferred tax asset and deferred tax liability amounts at January 1, 2024, were $178.25 million and $25 million, respectiu The enacted tax rate is 25% each year. Required 4 Required: 1. Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2024. 2. Determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2024. 3. Determine the income tax payable currently for the year ended December 31, 2024. 4. Prepare the journal entry to record income taxes for 2024. Complete this question by entering your answers in the tabs below. < Required 2 Required 1 Required 2 Required 3 Determine the income tax payable currently for the year ended December 31, 2024. Note: Enter your answer in millions (.e., 10,000,000 should be entered as 10). Income tax payable million @ Required 4 >
Transcribed Image Text:The total deferred tax asset and deferred tax liability amounts at January 1, 2024, were $178.25 million and $25 million, respectively The enacted tax rate is 25% each year. Required: 1. Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2024. 2. Determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2024. 3. Determine the income tax 4. Prepare the journal entry to record incly for the year ended December 31, 2024 2024 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2024. Note: Enter your answers in millions rounded to 2 decimal places (.e, 5,500,000 should be entered as 5.50). Deferred tax amounts ($ in millions Classification Amount Deferred tax ability Deferred tax asset Show Transcribed Text Reached The total deferred tax asset and deferred tax liability amounts at January 1, 2024, were $178.25 million and $25 million, respectively. The enacted tax rate is 25% each year. Required: 1. Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2024. 2. Determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2024 3. Determine the income tax payable currently for the year ended December 31, 2024. 4. Prepare the journal entry to record income taxes for 2024. Complete this question by entering your answers in the tabs below. The increase (decrease) at December 31, 2024 Required 1 Required 2 Required 3 Required 4 Determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2024. Note: Enter your answers in millions rounded to 2 decimal places (.e., 5,500,000 should be entered as 5.50). Decreases should be indicated with a minus sign. Show Transcribed Text Required 2 > ($in millions) Deferred tax liability Deferred tax asset <Required 1 sanataty compensated future absences "Gains and losses taxable when investments are sold. Required 3 > 638 million The total deferred tax asset and deferred tax liability amounts at January 1, 2024, were $178.25 million and $25 million, respectiu The enacted tax rate is 25% each year. Required 4 Required: 1. Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2024. 2. Determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2024. 3. Determine the income tax payable currently for the year ended December 31, 2024. 4. Prepare the journal entry to record income taxes for 2024. Complete this question by entering your answers in the tabs below. < Required 2 Required 1 Required 2 Required 3 Determine the income tax payable currently for the year ended December 31, 2024. Note: Enter your answer in millions (.e., 10,000,000 should be entered as 10). Income tax payable million @ Required 4 >
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