SUNLAND CORPORATION HAS ONE TEMPORARY DIFFERENCE AT THE END OF 2020 THAT WILL REVERSE AND CAUSE TAXABLE AMOUNTS OF 59,400 IN 2021, 64,200 IN 2022 AND 69,700 IN 2023. SUNLANDS PRETAX FINANCIAL INCOME FOR 2020 IS 316,600 AND THE TAX RATE IS 30% FOR ALL YEARS. THERE ARE NO DEFERRED TAXES AT THE BEGINNING OF 2020 COMPUTE TAXABLE I INCOME AND INCOME TAXES PAYABLE FOR 2020. prepare the journal entry to record income tax expense, deferred income taxes and income taxes payable for 2020

SUNLAND CORPORATION HAS ONE TEMPORARY DIFFERENCE AT THE END OF 2020 THAT WILL REVERSE AND CAUSE TAXABLE AMOUNTS OF 59,400 IN 2021, 64,200 IN 2022 AND 69,700 IN 2023. SUNLANDS PRETAX FINANCIAL INCOME FOR 2020 IS 316,600 AND THE TAX RATE IS 30% FOR ALL YEARS. THERE ARE NO DEFERRED TAXES AT THE BEGINNING OF 2020 COMPUTE TAXABLE I INCOME AND INCOME TAXES PAYABLE FOR 2020. prepare the journal entry to record income tax expense, deferred income taxes and income taxes payable for 2020

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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Since the SUTA rates changes are made at the end of each year, the available 2019 rates were used for FUTA and SUTA. Note: For this textbook edition the rate 0.6% was used for the net FUTA tax rate for employers. Example 5-8 The Iqbal Company of Georgia had a FUTA taxable payroll of $215,600 and a SUTA taxable payroll of $255,700 with a 5.6 percent SUTA tax rate. The company would pay unemployment taxes of: FUTA $215,600 × 0.006 = $1,293.60 SUTA $255,700 × 0.056 = 14,319.20 Total taxes $15,612.80 Kresloff Company has only two employees and is located in a state that has set an unemployment tax for the company of 4.8 percent on the first $12,000 of each employee’s earnings. Both employees are paid the same amount each week ($900) and have earned $11,500 up to this week’s pay. The unemployment taxes that the company must pay for this week’s pay would be $48.FUTA tax (both over $7,000) = $0.00SUTA tax ($1,000 × 0.048) = $48.00($500 of each employee’s pay is under the…
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