The company's income (loss) before income tax provision (benefit) was subject to taxes in the following jurisdictions for the following periods: 20X2 20X1 Domestic $205,000 The provision (benefit) for income taxes is as follows: 20X2 Current tax provision (benefit): United States Deferred tax expense (benefit): United States LSM Student's initials Income tax provision (benefit) Significant components of the Company's deferred tax assets and liabilities as of December 31, 20X2 and 20X1 are as follows: December 31, 20X2 20X1 Deferred tax assets: Bad debt reserve (accounts receivable) 18,000 10,000 Org exp and start up costs Warranty reserve Deferred compensation Capital loss carryforward Total deferred tax assets $18,000 $10,000 Deferred tax liabilities: Fixed assets (property and equipment) Net deferred tax assets $18,000 $10,000 LSM Student's initials A reconciliation of the U.S. income tax rate to the company's effective tax rate is as follows: 20X2 % $ Statutory Rate 35% $350,000 Tax exempt interest Dividends Received Deduction Effective Rate Note: The tax expense reported on the Income Statement in cell C25 should be the same number reported on the Note 21 Income Taxes tab, cells C42 and B19. Complete the Schedule M-1 template tab in the SAM worksheet student.xls and answer the following questions: What was the journal entry to record current tax expense for 20X2? What was the journal entry to record deferred tax expense for 20X2? What is the net DTA/DTL reported on the balance sheet?
The company's income (loss) before income tax provision (benefit) was subject to taxes in the following jurisdictions for the following periods: 20X2 20X1 Domestic $205,000 The provision (benefit) for income taxes is as follows: 20X2 Current tax provision (benefit): United States Deferred tax expense (benefit): United States LSM Student's initials Income tax provision (benefit) Significant components of the Company's deferred tax assets and liabilities as of December 31, 20X2 and 20X1 are as follows: December 31, 20X2 20X1 Deferred tax assets: Bad debt reserve (accounts receivable) 18,000 10,000 Org exp and start up costs Warranty reserve Deferred compensation Capital loss carryforward Total deferred tax assets $18,000 $10,000 Deferred tax liabilities: Fixed assets (property and equipment) Net deferred tax assets $18,000 $10,000 LSM Student's initials A reconciliation of the U.S. income tax rate to the company's effective tax rate is as follows: 20X2 % $ Statutory Rate 35% $350,000 Tax exempt interest Dividends Received Deduction Effective Rate Note: The tax expense reported on the Income Statement in cell C25 should be the same number reported on the Note 21 Income Taxes tab, cells C42 and B19. Complete the Schedule M-1 template tab in the SAM worksheet student.xls and answer the following questions: What was the journal entry to record current tax expense for 20X2? What was the journal entry to record deferred tax expense for 20X2? What is the net DTA/DTL reported on the balance sheet?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Note 21 Income Taxes | |||||
The company's income (loss) before income tax provision (benefit) was subject to | |||||
taxes in the following jurisdictions for the following periods: | |||||
20X2 | 20X1 | ||||
Domestic | $205,000 | ||||
The provision (benefit) for income taxes is as follows: | |||||
20X2 | |||||
Current tax provision (benefit): | |||||
United States | |||||
United States | LSM | Student's initials | |||
Income tax provision (benefit) | |||||
Significant components of the Company's |
|||||
December 31, | |||||
20X2 | 20X1 | ||||
Deferred tax assets: | |||||
|
18,000 | 10,000 | |||
Org exp and start up costs | |||||
Warranty reserve | |||||
Deferred compensation | |||||
Capital loss carryforward | |||||
Total deferred tax assets | $18,000 | $10,000 | |||
Fixed assets (property and equipment) | |||||
Net deferred tax assets | $18,000 | $10,000 | LSM | Student's initials | |
A reconciliation of the U.S. income tax rate to the company's effective tax rate is as follows: | |||||
20X2 | |||||
% | $ | ||||
Statutory Rate | 35% | $350,000 | |||
Tax exempt interest | |||||
Dividends Received Deduction | |||||
Effective Rate | |||||
Note: The tax expense reported on the Income Statement in cell C25 should be the same number reported on the Note 21 Income Taxes tab, cells C42 and B19.
- Complete the Schedule M-1 template tab in the SAM worksheet student.xls and answer the following questions:
- What was the
journal entry to record current tax expense for 20X2?
- What was the journal entry to record deferred tax expense for 20X2?
- What is the net DTA/DTL reported on the balance sheet?
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