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 years 2025-2028. 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 Media Solution 283200 Pretax financial income for 2024 $303,400 Excess of tax depreciation over book depreciation (40,000) Rent received in advance 19,800 Taxable income for 2024 $283,200 List of Accounts Assistance Used Attempts: unlimited 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 O for the amounts.) Account Titles and Explanation eTextbook and Media List of Accounts Save for Later Debit Credit Attempts: unlimited Submit Answer
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 years 2025-2028. 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 Media Solution 283200 Pretax financial income for 2024 $303,400 Excess of tax depreciation over book depreciation (40,000) Rent received in advance 19,800 Taxable income for 2024 $283,200 List of Accounts Assistance Used Attempts: unlimited 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 O for the amounts.) Account Titles and Explanation eTextbook and Media List of Accounts Save for Later Debit Credit Attempts: unlimited Submit Answer
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 56P
Related questions
Question

Transcribed Image Text: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 years
2025-2028.
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 Media
Solution
283200
Pretax financial income for 2024
$303,400
Excess of tax depreciation over book depreciation
(40,000)
Rent received in advance
19,800
Taxable income for 2024
$283,200
List of Accounts
Assistance Used
Attempts: unlimited
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 O for the amounts.)
Account Titles and Explanation
eTextbook and Media
List of Accounts
Save for Later
Debit
Credit
Attempts: unlimited
Submit Answer
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