provide solution. Rogene, Inc., reported the following results for the current year.Book income (before tax)$ 4,25,000Tax depreciation in excess of book$25,000Non-tax-deductible warranty expense$17,500Municipal bond interest income$28,500Determine Rogene's taxable income for the current year. Identify anytemporary or permanent book-tax differences.

Step 1: Key InformationBook Income (before tax): $425,000Tax Depreciation in Excess of Book…

Answered: Rogene, Inc., reported the following…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter3: Taxes On The Financial Statements

Section: Chapter Questions

Problem 4BCRQ

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Similar questions

In the current year, Madison Corporation had 50,000 of taxable income at a tax rate of 25%. During the year, Madison began offering warranties on its products and has a Warranty liability for financial reporting purposes of 5,000 at the end of the year. Warranty expenses are not deductible until paid for income tax purposes. Prepare the journal entry to record Madisons income taxes at the end of the year.
Integrity Company computed a pre-tax financial income of P2,200,000 for its first year of operations ended December 31, 2021. In preparing the income tax return, the accountant determined the following differences between financial and taxable income: Non-deductible expenses – P400,000 Non-taxable revenues – P150,000 Temporary difference (installment sales reported in financial income but not in taxable income) – P700,000 The enacted tax rates and the reversal of the temporary difference are as follows (see image below).How much is the Total Income Tax Expense in 2021? a. P749,000 b. P945,000 c. P762,600 d. P707,400
Mami Co. computed a pre-tax financial income of 15,000,000 for the year ended Dec. 31, 201X. In preparing the tax return, the following differences are noted between financial income and taxable income. Non-deductible Expense 2,000,000 Non-taxable revenue 1,000,000 Estimated warranty cost that was recognized as expense in 200X but deductible for tax purposes when paid 1,500,000 Excess tax depreciation over financial depreciation 500,000 What is the current tax expense for 201X if the tax rate is 32%?
For the current year, LNS corporation reported the following taxable income at the end of its first, second, and third quarters. Quarter-End Cumulative Taxable Income First $ 1,860,000 Second 2,620,000 Third 3,510,000 What are LNS’s minimum first, second, third, and fourth quarter estimated tax payments, using the annualized income method? (Enter all amounts as positive values. Leave no answer blank. Enter zero if applicable. Round "Annualization Factor" for Fourth quarter to 7 places. Round other intermediate computations and final answers to the nearest whole dollar amount.)
For the year ended December 31, year 1, Tyre Co. reported pretax financial statement income of $7,500,000. Its taxable income was $6,500,000. The difference is due to accelerated depreciation for income tax purposes. Tyre's effective income tax rate is 30%, and Tyre made estimated tax payments during year 1 of $900,000. 1. What amount should be reported as current tax expense for the current year? a. 2,250,000 b. 1,950,000 c. 1,050,000 d. 1,350,000 2. What amount should be reported as total income tax expense? a. 1,350,000 b. 1,950,000 c. 1,050,000 d. 2,250,000 3. What amount of income tax payable should be presented at year end? a. 2,250,000 b. 1,350,000 c. 1,950,000 d. 1,050,000
For the current year, LNS corporation reported the following taxable income at the end of its first, second, and third quarters. Quarter-End Cumulative Taxable Income First $ 1,850,000 Second 2,520,000 Third 3,600,000 What are LNS’s minimum first, second, third, and fourth quarter estimated tax payments, using the annualized income method?
1. How much is the taxable income for the year?2. How much is the current tax expense for the year?
Pretax financial statement income for the year ended December 31, 2021, was $25 million for Scott Pen Company. Scott's taxable income was $30 million. This was a result of differences between depreciation for financial reporting purposes and tax purposes. The enacted tax rate is 30% for 2021 and 40 % thereafter. What amount should Scott report as the current portion of income tax expense for 2021?
Bonita Inc. reports the following pretax income (loss) for both book and tax purposes. Pretax Year Income (Loss) Tax Rate 2018 $124,000 20 % 2019 86,000 20 % 2020 (89,000 ) 25 % 2021 126,000 25 % The tax rates listed were all enacted by the beginning of 2018. Prepare the journal entries for years 2018-2021 to record income tax expense (benefit) and income taxes payable, and the tax effects of the loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-half of the benefits of the loss carryforward will not be realized. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Bluth, Inc. reported the following financial information: Taxable income for current year $200,000 Deferred tax liability, beginning of year 46,000 Deferred tax liability, end of year 57,000 Deferred tax asset, beginning of year 12,000 Deferred tax asset, end of year 18,000 Current and future years' tax rate 21% The current year's income tax expense is what amount?
For the current year, LNS corporation reported the following taxable income at the end of its first, second, and third quarters. Quarter-End First Second Third What are LNS's minimum first-, second-, third-, and fourth-quarter estimated tax payments, using the annualized income method? Note: Enter all amounts as positive values. Leave no answer blank. Enter zero if applicable. Round "Annualization Factor" for Fourth quarter to 7 places. Round other intermediate computations and final answers to the nearest whole dollar amount. Installment First quarter Second quarter Cumulative Taxable Income $ 1,000,000 1,600,000 2,400,000 Third quarter Fourth quarter Taxable Income Annualization Factor Annual Estimated Taxable Income $ $ $ $ 0 0 0 0 Tax on Estimated Taxable Income Percentage of Tax Required to be Paid Required Cumulative Payment % $ |% $ % $ % $ 0 0 0 0 Prior Cumulative Payments Required Estimated Tax Payment
Martinez Corporation reports pretax financial income of $264,100 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Rental income on the income statement is less than rent collected on the tax return by $65,200. Depreciation on the tax return is greater than depreciation on the income statement by $41,800. Interest on an investment in a municipal bond of $7,000 on the income statement. 3. Martinez' tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020. (a) Compute taxable income and income taxes payable for 2020. Taxable income $enter a dollar amount Income taxes payable $enter a dollar amount 2.

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