The information that follows pertains to Richards Refrigeration, Inc.:a. At December 31, 2021, temporary differences existed between the financial statement book values andthe tax bases of the following:($ in millions)Future TaxableBookValueТаx(Deductible)BasisAmountBuildings and equipment (net of accumulateddepreciation)Prepaid insuranceLiability-loss contingency$146$103$$ 43636338(38)b. No temporary differences existed at the beginning of 2021.c. Pretax accounting income was $213 million and taxable income was $145 million for the year endedDecember 31, 2021. The tax rate is 25%.Required:1. Complete the following table given below and prepare the appropriateto record incometaxes for 2021.2. What is the 2021 net income?Complete this question by entering your answers in the tabs below.Required 1CalculationRequired 1 G)Required 2Complete the following table given below to record income taxes for 2021. (Enter your answers in millions rounded to 2 decimal places(i.e., 5,500,000 should be entered as 5.50). Negative amounts should be entered with a minus sign.)(S in millions)Tax Rate %Tax $Recorded as:Pretax accounting income$213.00Permanent differencesIncome subject to taxation213.00$0.00 Required:1. Complete the following table given below and prepare the appropriate journal entry to record incometaxes for 2021.2. What is the 2021 net income?Complete this question by entering your answers in the tabs below.Required 1CalculationRequired 1 GJRequired 2Complete the following table given below to record income taxes for 2021. (Enter your answers in millions rounded to 2 decimal places(i.e., 5,500,000 should be entered as 5.50). Negative amounts should be entered with a minus sign.)(S in millions)Tax Rate %Тax $Recorded as:XPretax accounting income$213.00Permanent differencesIncome subject to taxation213.002$0.00Temporary DifferencesDepreciation=Prepaid insurance%3DLiability - loss contingencyIncome taxable in current year$213.00< Required 1 CalculationRequired 1 GJ >

The information that follows pertains to Richards Refrigeration, Inc.: a. At December 31, 2021, temporary differences existed between the financial statement book values and the tax bases of the following: ($ in millions) Future Taxable Вook Таx (Deductible) Value Basis Amount Buildings and equipment (net of accumulated depreciation) Prepaid insurance Liability-loss contingency $146 $103 $ 43 63 63 38 (38) b. No temporary differences existed at the beginning of 2021. c. Pretax accounting income was $213 million and taxable income was $145 million for the year ended December 31, 2021. The tax rate is 25%. Required: 1. Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2021. 2. What is the 2021 net income?

The information that follows pertains to Richards Refrigeration, Inc.: a. At December 31, 2021, temporary differences existed between the financial statement book values and the tax bases of the following: ($ in millions) Future Taxable Вook Таx (Deductible) Value Basis Amount Buildings and equipment (net of accumulated depreciation) Prepaid insurance Liability-loss contingency $146 $103 $ 43 63 63 38 (38) b. No temporary differences existed at the beginning of 2021. c. Pretax accounting income was $213 million and taxable income was $145 million for the year ended December 31, 2021. The tax rate is 25%. Required: 1. Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2021. 2. What is the 2021 net income?

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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