Roth Inc. has a deferred tax liability of $68,000 at the beginning of 2013. At the end of 2013, it reports accounts receivable on the books at $90,000 and the tax basis at zero (its only temporary difference). If the enacted tax rate is 34% for all periods, and income taxes payable for the period is $230,000, determine the amount of total income tax expense to report for 2013.(Subject:- General Account)

Roth Inc. has a deferred tax liability of $68,000 at the beginning of 2013. At the end of 2013, it reports accounts receivable on the books at $90,000 and the tax basis at zero (its only temporary difference). If the enacted tax rate is 34% for all periods, and income taxes payable for the period is $230,000, determine the amount of total income tax expense to report for 2013.(Subject:- 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 51P

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Roth Inc. has a deferred tax liability of $68,000 at the beginning of 2013. At the end of 2013, it reports accounts receivable on the books at $90,000 and the tax basis at zero (its only temporary difference). If the enacted tax rate is 34% for all periods, and income taxes payable for the period is $230,000, determine the amount of total income tax expense to report for 2013.
J-Matt, Inc., had pretax accounting income of $291,000 and taxable income of $300,000 in 2016. The only difference between accounting and taxable income is estimated product warranty costs for sales this year. Warranty payments are expected to be in equal amounts over the next three years. Recent tax legislation will change the tax rate from the current 40% to 30% in 2018. Determine the amounts necessary to record J-Matt’s income taxes for 2016 and prepare the appropriate journal entry.
Roth Inc. has a deferred tax liability of $68,000 at thebeginning of 2018. At the end of 2018, it reports accountsreceivable on the books at $90,000 and the tax basis atzero (its only temporary difference). If the enacted taxrate is 34% for all periods, and income taxes payable forthe period is $230,000, determine the amount of totalincome tax expense to report for 2018.
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A company's income statement reported net income of $88,500 during 2019. The income tax return excluded a revenue item of $9,500 (reported on the income statement) because under the tax laws the $9,500 would not be reported for tax purposes until 2020. Which of the following statements is incorrect assuming a 21% tax rate? 1. Income tax expense on the income statement is $16,590. 2. A $1,995 deferred tax liability is reported as of December 31, 2019. 3. The $9,500 of revenue creates a deferred tax liability. 4. Income tax expense on the income statement exceeds the tax liability to the IRS.
Baltimore inc reported pretax gaap income of $45,000 in 2020. The company determined it had deducted $5000 in nondeductible fines and added $2800 in tax exempt municipal interest revenue to Gaap income. Given a statutory tax rate of 25%, determine the taxable income, income tax payable, income tax expense, net income, and effective tax rate.
Provide correct answer general accounting
A company's income statement reported net income of $80,000 during 2014. The income tax return excluded a revenue item of $6,000 (reported on the income statement) because under the tax laws the $6,000 would not be reported for tax purposes until 2015. Which of the following statements is incorrect assuming a 35% tax rate? Income tax expense on the income statement exceeds the tax liability to the IRS. The $6,000 of revenue creates a deferred tax liability. A $2,100 deferred tax liability is reported as of December 31, 2014. Income tax expense on the income statement is $25,900.
J-Matt, Inc., had pretax accounting income of $329,000 and taxable income of $372,000 in 2021. The only difference between accounting and taxable income is estimated product warranty costs of $43,000 for sales in 2021. Warranty payments are expected to be in equal amounts over the next three years (2022-2024) and will be tax deductible at that time. Recent tax legislation will change the tax rate from the current 25% to 20% in 2023. Determine the amounts necessary to record J-Matt's income taxes for 2021 and prepare the appropriate journal entry.
At the end of 2016, Sentry Company reported a deferred tax liability of $6,120 based on an income tax rate of 30%. On January 2, 2017, Congress changed the income tax rate to 35%. Required: 1. Calculate the amount of the adjustment to Sentry’s 2016 year-end deferred tax liability. 2. Prepare the journal entry to correct Sentry’s deferred tax liability.
J-Matt, Inc., had pretax accounting income of $331,000 and taxable income of $376,000 in 2021. The only difference between accounting and taxable income is estimated product warranty costs of $45,000 for sales in 2021. Warranty payments are expected to be in equal amounts over the next three years (2022–2024) and will be tax deductible at that time. Recent tax legislation will change the tax rate from the current 25% to 20% in 2023. Determine the amounts necessary to record J-Matt’s income taxes for 2021 and prepare the appropriate journal entry.
Bezos Company’s income tax return shows income taxes payable for 2020 of $75,000 (that is, $75,000 is owed for 2020). For financial reporting, the firm reports deferred tax assets of $67,900 at the beginning of 2020 and $63,600 at the end of 2020. It reports deferred tax liabilities of $53,600 at the beginning of 2020 and $59,400 at the end of 2020. Compute the amount of income tax expense for 2020.