Bhil Zekany Corporation would have had identical income before taxes on both its income tax returns and income statements for the years2024 through 2025 except for differences in depreciation on an operational asset. The asset cost $180,000 and is depreciated forincome tax purposes in the following amounts:2024202520262027The operational asset has a four-year life and no residual value. The straight-line method is used for financial reporting purposes.Income amounts before depreciation expense and income taxes for each of the four years were as follows:Accounting income before taxes and depreciation1Assume the income tax rate for 2024 and 2025 was 30% ; however, during 2025, tax legislation was passed to raise the tax rate to40% beginning in 2026. The 40% rate remained in effect through the years 2026 and 2027. Both the accounting and income taxperiods end December 31.No$ 59,40079,20027,00014,400Required:Prepare the journal entries to record income taxes for the years 2024 through 2027.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.234DateDecember 31, 2024 Income tax expenseIncome tax payableDecember 31, 202 Income tax expenseIncome tax payable2024202520262027$ 100,000 $ 120,000 $ 110,000 $ 110,000December 31, 2026 Income tax expenseIncome tax payableDecember 31, 202] Income tax expenseIncome tax payableX Answer is not complete.General Journal> >✓33✓XX 3Debit12,180 x12,240 x33,200 x38,240 xCredit12,180✔12,24033,20038,240 x

The record of day-to-day transactions in the books of accounts is called journal entries. In a…

Required: Prepare the journal entries to record income taxes for the years 2024 through 2027. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

Required: Prepare the journal entries to record income taxes for the years 2024 through 2027. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 5MC: At the beginning of 2019, Conley Company purchased an asset at a cost of 10,000. For financial...

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At the beginning of 2019, Conley Company purchased an asset at a cost of 10,000. For financial reporting purposes, the asset has a 4-year life with no residual value and is depreciated by the straight-line method beginning in 2019. For tax purposes, the asset is depreciated under MACRS using a 5-year recovery period. Prior to 2019, Conley had no deferred tax liability or asset. The difference between depreciation for financial reporting purposes and income tax purposes is the only temporary difference between pretax financial income and taxable income. The current income tax rate is 30%, and no change in the tax rate has been enacted for future years. In 2019 and 2020, taxable income will be higher or lower than financial income by what amount?
Zekany Corporation would have had identical income before taxes on both its income tax returns and income statements for the years 2021 through 2024 except for differences in depreciation on an operational asset. The asset cost $160,0o0 and is depreciated for income tax purposes in the following amounts: $52, 800 78, 400 24, 80e 12, 800 2021 2022 2023 2024 The operational asset has a four-year life and no residual value. The straight-line method is used for financial reporting purposes. Income amounts before depreciation expense and income taxes for each of the four years were as follows: 2021 $ 98,000 $11e, 00e $100, 00e $109, 000 2822 2023 2024 Accounting income before taxes and depreciation Assume the income tax rate for 2021 and 2022 was 30%; however, during 2022, tax legislation was passed to raise the tax rate to 40% beginning in 2023. The 40% rate remained in effect through the years 2023 and 2024. Both the accounting and income tax periods end December 31. Required: Prepare the…
Zekany Corporation would have had identical income before taxes on both its income tax returns and income statements for the years 2021 through 2024 except for differences in depreciation on an operational asset. The asset cost $110,000 and is depreciated for income tax purposes in the following amounts: 2021$36,300 2022 48,400 2023 16,500 2024 8,800 The operational asset has a four-year life and no residual value. The straight-line method is used for financial reporting purposes. Income amounts before depreciation expense and income taxes for each of the four years were as follows: 2021 2022 2023 2024 Accounting income before taxes and depreciation $70,000 $90,000 $80,000 $80,000 Assume the income tax rate for 2021 and 2022 was 30%; however, during 2022, tax legislation was passed to raise the tax rate to 40% beginning in 2023. The 40% rate remained in effect through the years 2023 and 2024. Both the accounting and income tax periods end December 31. Required: Prepare the journal…
Zekany Corporation would have had identical income before taxes on both its income tax returns and income statements for the years 2021 through 2024 except for differences in depreciation on an operational asset. The asset cost $220,000 and is depreciated for income tax purposes in the following amounts: 2021 $ 72,600 2022 96,800 2023 33,000 2024 17,600 The operational asset has a four-year life and no residual value. The straight-line method is used for financial reporting purposes.Income amounts before depreciation expense and income taxes for each of the four years were as follows: 2021 2022 2023 2024 Accounting income before taxes and depreciation $120,000 140,000 130,000 130,000 Assume the income tax rate for 2021 and 2022 was 30%; however, during 2022, tax legislation was passed to raise the tax rate to 40% beginning in 2023. The 40% rate remained in effect through the years 2023 and 2024. Both the accounting and income tax…
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