The following information is available for Oriole Corporation for 2024 (its first year of operations).1.Excess of tax depreciation over book depreciation, $40,000. This $40,000 difference will reverse equally over the years2025-2028.2.Deferral, for book purposes, of $19,800 of rent received in advance. The rent will be recognized in 2025.3.Pretax financial income, $303,400.4.Tax rate for all years, 30%.(a)Your answer is correct.Compute taxable income for 2024.Taxable income(b)eTextbook and MediaSolution283200Pretax financial income for 2024$303,400Excess of tax depreciation over book depreciation(40,000)Rent received in advance19,800Taxable income for 2024$283,200List of AccountsAssistance UsedAttempts: unlimitedPrepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2024. (List all debitentries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry isrequired, select "No Entry" for the account titles and enter O for the amounts.)Account Titles and ExplanationeTextbook and MediaList of AccountsSave for LaterDebitCreditAttempts: unlimitedSubmit Answer

Step 1:Deferred tax assets or liabilities arises when book profit and taxable profit is…

Answered: The following information is available…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 56P

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Comprehensive Colt Company reports pretax financial income of 143,000 in 2019. In addition to pretax income from continuing operations (of which revenues are 295,000), the following items are included in this pretax income: Colts taxable income totals 93,000 in 2019. The difference between the pretax financial income and the taxable income is due to the excess of tax depreciation over financial depreciation on assets used in continuing operations. At the beginning of 2019, Colt had a retained earnings balance of 310.000 and a deferred tax liability of 8,100. During 2019, Colt declared and paid dividends of 48,000. It is subject to tax rates of 15% on the first 50,000 of income and 30% on income in excess of 50,000. Based on proper interperiod tax allocation procedures, Colt has determined that its 2019 ending deferred tax liability is 14,100. Required: 1. Prepare a schedule for Colt to allocate the total 2019 income tax expense to the various components of pretax income. 2. Prepare Colts income tax journal entry at the end of 2019. 3. Prepare Colts 2019 income statement. 4. Prepare Colts 2019 statement of retained earnings. 5. Show the related income tax disclosures on Colts December 31, 2019, balance sheet.
In the current year, Madison Corporation had 50,000 of taxable income at a tax rate of 25%. During the year, Madison began offering warranties on its products and has a Warranty liability for financial reporting purposes of 5,000 at the end of the year. Warranty expenses are not deductible until paid for income tax purposes. Prepare the journal entry to record Madisons income taxes at the end of the year.
Your answer is partially correct. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2025, assuming taxable income of $297,100. (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 O for the amounts.) Account Titles and Explanation Income Tax Expense Income Tax Payable Debit Credit
The following information is available for Flounder Corporation for 2024 (its first year of operations). 1. نه Excess of tax depreciation over book depreciation, $41,000. This $41,000 difference will reverse equally over the years 2025-2028. Deferral, for book purposes, of $18,100 of rent received in advance. The rent will be recognized in 2025. 3. Pretax financial income, $300,200. 4. Tax rate for all years, 20%. (a) Compute taxable income for 2024. Taxable income $
The following information is available for Sarasota Corporation for 2019 (its first year of operations). 1. Excess of tax depreciation over book depreciation, $39,600. This $39,600 difference will reverse equally over the years 2020-2023. Deferral, for book purposes, of $21,900 of rent received in advance. The rent will be recognized in 2020. 2. 3. Pretax financial income, $271,300. 4. Tax rate for all years, 20%. Your answer is correct. Compute taxable income for 2019. Taxable income eTextbook and Media List of Accounts 253,600 Your answer is partially correct. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2019. (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 O for the amounts.) Account Titles and Explanation Debit Credit
The following information is available for Grouper Corporation for 2024 (its first year of operations). 1. 2. 3. 4. (a) Excess of tax depreciation over book depreciation, $41,200. This $41,200 difference will reverse equally over the years 2025-2028. Deferral, for book purposes, of $18,700 of rent received in advance. The rent will be recognized in 2025. Pretax financial income, $319,200. Tax rate for all years, 30%. Compute taxable income for 2024. Taxable income eTextbook and Media List of Accounts Save for Later Attempts: 0 of 1 used Submit Answer
The following information is available for Sandhill Corporation for 2019 (its first year of operations). 1. Excess of tax depreciation over book depreciation, $40,400. This $40,400 difference will reverse equally over the years 2020–2023. 2. Deferral, for book purposes, of $19,900 of rent received in advance. The rent will be recognized in 2020. 3. Pretax financial income, $284,700. 4. Tax rate for all years, 20%.
The following information is available for Sandhill Corporation for 2019 (its first year of operations). 1. Excess of tax depreciation over book depreciation, $40,400. This $40,400 difference will reverse equally over the years 2020–2023. 2. Deferral, for book purposes, of $19,900 of rent received in advance. The rent will be recognized in 2020. 3. Pretax financial income, $284,700. 4. Tax rate for all years, 20%.
The following information is available for Pina Corporation for 2019 (its first year of operations). 1. Excess of tax depreciation over book dapreciation, $38,400. This $38,400 difference will reverse squally over the years 2020-2023. 2. Deferral, for book purposes, of $20,800 of rentrecsived in advance. The rent will be recognized in 2020. 3. Pretax financial income, $284,000. 4. Tax rate for all yaars, 20%. Computa taxable income for 2019. Taxable incoma eTextbook and Medla List of Accounts Prepare the journal antry to record income taxepense, daferred income taxes, and income taxas payable for 2019. (Credit occount 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 O for the amcunts) Account Titles and Explanation Debit Credit eTextbook and Medla List of Accounts Prepare the journal antry to record income tax oxpense, deferred income taxes, and income taxas payable for 2020,…
The following information is available for Pharoah Corporation for 2019 (its first year of operations). 1. Excess of tax depreciation over book depreciation, $43,800. This $43,800 difference will reverse equally over the years 2020–2023. 2. Deferral, for book purposes, of $18,600 of rent received in advance. The rent will be recognized in 2020. 3. Pretax financial income, $272,800. 4. Tax rate for all years, 20%. (a) Compute taxable income for 2019. Taxable income $enter Taxable income in dollars (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2019. (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 Debit Credit enter an account title enter a debit…
The following information is available for Pronghorn Corporation for 2019 (its first year of operations). 1. Excess of tax depreciation over book depreciation, $41,200. This $41,200 difference will reverse equally over the years 2020–2023. 2. Deferral, for book purposes, of $18,700 of rent received in advance. The rent will be recognized in 2020. 3. Pretax financial income, $319,200. 4. Tax rate for all years, 20%. Compute taxable income for 2019. Taxable income $enter Taxable income in dollars eTextbook and Media List of Accounts Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2019. (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…
The following information is available for Blue Corporation for 2019 (its first year of operations). 1. Excess of tax depreciation over book depreciation, $36,800. This $36,800 difference will reverse equally over the years 2020–2023. 2. Deferral, for book purposes, of $20,300 of rent received in advance. The rent will be recognized in 2020. 3. Pretax financial income, $322,400. 4. Tax rate for all years, 20%. Compute taxable income for 2019. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2019. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020, assuming taxable income of $320,100.

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