im not sure what is correct answer please help me SHANNON POLYMERS USES STRAIGHT-LINEDEPRECIATION FOR FINANCIAL REPORTING PURPOSESFOR EQUIPMENT COSTING $620,000 AND WITH ANEXPECTED USEFUL LIFE OF 4 YEARS AND NO RESIDUALVALUE. FOR TAX PURPOSES, THE DEDUCTION IS 40%,30%, 20%, AND 10% IN THOSE YEARS. PRETAXACCOUNTING INCOME THE FIRST YEAR THE EQUIPMENTWAS USED WAS $720,000, WHICH INCLUDES INTERESTREVENUE OF $16,000 FROM MUNICIPAL BONDS. OTHERTHAN THE TWO DESCRIBED, THERE ARE NO DIFFERENCESBETWEEN ACCOUNTING INCOME AND TAXABLEINCOME. THE ENACTED TAX RATE IS 35%.PREPARE THE JOURNAL ENTRY TO RECORD INCOMETAXES.(COST ACCOUNT).

To prepare the journal entry for Shannon Polymers to record income taxes, we calculate the current…

Answered: SHANNON POLYMERS USES STRAIGHT-LINE…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter12: Corporations: Organization, Capital Structure, And Operating Rules

Section: Chapter Questions

Problem 42P

See similar textbooks

Similar questions

Shannon Polymers uses straight-line depreciation for financial reporting purposes for equipment costing $880,000 and with an expected useful life of four years and no residual value. Assume that, for tax purposes, the deduction is 40%, 30%, 20%, and 10% in those years. Pretax accounting income the first year the equipment was used was $1,000,000, which includes interest revenue of $30,000 from municipal governmental bonds. Other than the two described, there are no differences between accounting income and taxable income. The enacted tax rate is 25%. Prepare the journal entry to record income taxes. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Transaction General Journal 1 1 Income tax expense Deferred tax liability Income tax payable Debit Credit 33,000
Shannon Polymers uses straight-line depreciation for financial reporting purposes for equipment costing $840,000 and with an expected useful life of four years and no residual value. Assume that, for tax purposes, the deduction is 40%, 30%, 20%, and 10% in those years. Pretax accounting income the first year the equipment was used was $960,000, which includes interest revenue of $28,000 from municipal governmental bonds. Other than the two described, there are no differences between accounting income and taxable income. The enacted tax rate is 25%. Prepare the journal entry to record income taxes. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 Record the income tax expense. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Income tax expense Deferred tax liability Income tax payable
Shannon Polymers uses straight-line depreciation for financial reporting purposes for equipment costing $780,000 and with an expected useful life of four years and no residual value. Assume that, for tax purposes, the deduction is 40%, 30%, 20%, and 10% in those years. Pretax accounting income the first year the equipment was used was $880,000, which includes interest revenue of $25,000 from municipal governmental bonds. Other than the two described, there are no differences between accounting income and taxable income. The enacted tax rate is 25%. Prepare the journal entry to record income taxes.
Shannon Polymers uses straight-line depreciation for financial reporting purposes for equipment costing $600,000 and with an expected useful life of four years and no residual value. Assume that, for tax purposes, the deduction is 40%, 30%, 20%, and 10% In those years. Pretax accounting Income the first year the equipment was used was $700,000, which includes interest revenue of $15,000 from municipal governmental bonds. Other than the two described, there are no differences between accounting Income and taxable income. The enacted tax rate is 25%. Prepare the journal entry to record income taxes. Note: If no entry is required for a transaction/event, select "No Journal entry required" In the first account field. View transaction list View journal entry worksheet No 1 Transaction General Journal Income tax expense Income tax payable Deferred tax liability Debit Credit 171,250
Shannon Polymers uses straight-line depreciation for financial reporting purposes for equipment costing $540,000 and with an expected useful life of four years and no residual value. Assume that, for tax purposes, the deduction is 40%, 30%, 20%, and 10% in those years. Pretax accounting income the first year the equipment was used was $640,000, which includes interest revenue of $12,000 from municipal governmental bonds. Other than the two described, there are no differences between accounting income and taxable income. The enacted tax rate is 25%.
Shannon Polymers uses straight-line depreciation for financial reporting purposes for equipment costing $800,000 and with an expected useful life of four years and no residual value. For tax purposes, the deduction is 40%, 30%, 20%, and 10% in those years. Pretax accounting income the first year the equipment was used was $900,000, which includes interest revenue of $20,000 from municipal bonds. Other than the two described, there are no differences between accounting income and taxable income. The enacted tax rate is 40%. Prepare the journal entry to record income taxes.
Subject: acounting
At the end of the year, Huskies Together Company has pretax financial income of $550,000. Included in the $550,000 is $70,000 interest income on municipal bonds, $25,000 fine for dumping hazardous waste, and depreciation of $60,000. Depreciation for tax purposes is $45,000. Compute income taxes payable, assuming the tax rate is 30% for all periods. Prepare the journal entry at the end of the year.
Infinity Production acquired a new machine at the beginning of the current year. The machine cost $900,000 with no residual value expected. Infinity uses the straight-line method for financial reporting, assuming a 6-year useful life. The firm classifies the equipment as 5-year MACRS property for tax purposes using the following percentages. Year MACRS (%) 1 20.00% 2 32.00 3 19.20 4 11.52 5 11.52 6 5.76 The company is subject to a 25% income tax rate and has no other book-tax differences. Income before depreciation and tax is presented below: Year Income before Tax and Depreciation 1 $370,000 2 420,000 3 490,000 4 700,000 5 820,000 6 950,000 What is Infinity's income tax expense for year 1?
Infinity Production acquired a new machine at the beginning of the current year. The machine cost $900,000 with no residual value expected. Infinity uses the straight-line method for financial reporting, assuming a 6-year useful life. The firm classifies the equipment as 5-year MACRS property for tax purposes using the following percentages. Year MACRS (%) 1 20.00% 2 32.00 3 19.20 4 11.52 5 11.52 6 5.76 The company is subject to a 20% income tax rate and has no other book-tax differences. Income before depreciation and tax is presented below: Year Income before Tax and Depreciation 1 $450,000 2 500,000 3 570,000 4 700,000 5 820,000 6 950,000 What is Infinity's deferred tax asset or deferred tax liability at the end of year 3? Group of answer choices $38,160 deferred tax liability $2760 deferred tax liability $2760 deferred tax asset $38,160 deferred tax asset PreviousNext
Liberty Contractors records depreciation of $50,000 per year for three years. For tax purposes, the company has the following schedule of depreciation expense: = Year 1 $62,000 Year 2 $50,000 = Year 3 = $38,000 Assume that each year Liberty makes $120,000 of income before depreciation expense and that the company has a 40% effective tax rate. What is the amount of tax expense, tax liability, and deferred tax liability for Year 2?
i need the answer quickly

SEE MORE QUESTIONS

Recommended textbooks for you

SWFT Essntl Tax Individ/Bus Entities 2020

Accounting

ISBN:

9780357391266

Author:

Nellen

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

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

Publisher:

Cengage Learning

SWFT Essntl Tax Individ/Bus Entities 2020

Accounting

ISBN:

9780357391266

Author:

Nellen

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

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

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS