The following information is available for Bramble Corporation for 2024 (its first year of operations). 1. Excess of tax depreciation over book depreciation, $42,400. This $42,400 difference will reverse equally over the years 2025-2028. 2. Deferral, for book purposes, of $20,300 of rent received in advance. The rent will be recognized in 2025. 3. Pretax financial income, $272,300. 4. Tax rate for all years, 30%.
The following information is available for Bramble Corporation for 2024 (its first year of operations). 1. Excess of tax depreciation over book depreciation, $42,400. This $42,400 difference will reverse equally over the years 2025-2028. 2. Deferral, for book purposes, of $20,300 of rent received in advance. The rent will be recognized in 2025. 3. Pretax financial income, $272,300. 4. Tax rate for all years, 30%.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 13P
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![Current Attempt in Progress
The following information is available for Bramble Corporation for 2024 (its first year of operations).
1.
Excess of tax depreciation over book depreciation, $42,400. This $42,400 difference will reverse equally over the years
2025-2028.
2.
Deferral, for book purposes, of $20,300 of rent received in advance. The rent will be recognized in 2025.
3.
Pretax financial income, $272,300.
4.
Tax rate for all years, 30%.
(a)
Your answer is correct.
Compute taxable income for 2024.
Taxable income $
250200
Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2024. (List all debit
entries before credit entries. 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.)
Account Titles and Explanation
Income Tax Expense
Deferred Tax Asset
Deferred Tax Liability
Income Tax Payable
Debit
79410
6090
Credit
10440
75060](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0985acd5-ff87-4405-a8ee-607a82df6a1a%2Fb4f35744-43c7-4662-bc2c-8e1ad6588c96%2Fqp3ba9p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Current Attempt in Progress
The following information is available for Bramble Corporation for 2024 (its first year of operations).
1.
Excess of tax depreciation over book depreciation, $42,400. This $42,400 difference will reverse equally over the years
2025-2028.
2.
Deferral, for book purposes, of $20,300 of rent received in advance. The rent will be recognized in 2025.
3.
Pretax financial income, $272,300.
4.
Tax rate for all years, 30%.
(a)
Your answer is correct.
Compute taxable income for 2024.
Taxable income $
250200
Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2024. (List all debit
entries before credit entries. 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.)
Account Titles and Explanation
Income Tax Expense
Deferred Tax Asset
Deferred Tax Liability
Income Tax Payable
Debit
79410
6090
Credit
10440
75060
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