Required 1 Calculation General Journal Required 2 Complete the following table given below to record income taxes for 2024. Note: Amounts to be deducted should be entered with a minus sign. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). Description Amount (in millions) Tax Rate = Tax (in millions) Pretax accounting income $ 200.00 Permanent differences Income subject to taxation Temporary Differences 200.00 × = II = × = × = Income taxable in current year $ 200.00 × = EA $ 0.00 Recorded as: The information that follows pertains to Richards Refrigeration, Incorporated: a. At December 31, 2024, temporary differences existed between the financial statement book values and the tax bases of the following: Buildings and equipment (net of accumulated depreciation) Prepaid insurance Liability-loss contingency b. No temporary differences existed at the beginning of 2024. ($ in millions) Book Value Tax Basis $ 120 $ 90 50 25 0 0 Future Taxable (Deductible) Amount $ 30 50 (25) c. Pretax accounting income was $200 million and taxable income was $145 million for the year ended December 31, 2024. The tax rate is 25%. Required: 1. Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2024. 2. What is the 2024 net income?
Required 1 Calculation General Journal Required 2 Complete the following table given below to record income taxes for 2024. Note: Amounts to be deducted should be entered with a minus sign. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). Description Amount (in millions) Tax Rate = Tax (in millions) Pretax accounting income $ 200.00 Permanent differences Income subject to taxation Temporary Differences 200.00 × = II = × = × = Income taxable in current year $ 200.00 × = EA $ 0.00 Recorded as: The information that follows pertains to Richards Refrigeration, Incorporated: a. At December 31, 2024, temporary differences existed between the financial statement book values and the tax bases of the following: Buildings and equipment (net of accumulated depreciation) Prepaid insurance Liability-loss contingency b. No temporary differences existed at the beginning of 2024. ($ in millions) Book Value Tax Basis $ 120 $ 90 50 25 0 0 Future Taxable (Deductible) Amount $ 30 50 (25) c. Pretax accounting income was $200 million and taxable income was $145 million for the year ended December 31, 2024. The tax rate is 25%. Required: 1. Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2024. 2. What is the 2024 net income?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 4BCRQ
Related questions
Question
Transcribed Image Text:Required 1
Calculation
General
Journal
Required 2
Complete the following table given below to record income taxes for 2024.
Note: Amounts to be deducted should be entered with a minus sign. Enter your answers in millions rounded to 2 decimal places (i.e.,
5,500,000 should be entered as 5.50).
Description
Amount (in
millions)
Tax Rate
=
Tax (in
millions)
Pretax accounting income
$
200.00
Permanent differences
Income subject to taxation
Temporary Differences
200.00 ×
=
II
=
×
=
×
=
Income taxable in current year
$
200.00
×
=
EA
$
0.00
Recorded as:
Transcribed Image Text:The information that follows pertains to Richards Refrigeration, Incorporated:
a. At December 31, 2024, temporary differences existed between the financial statement book values and the tax bases of the
following:
Buildings and equipment (net of accumulated depreciation)
Prepaid insurance
Liability-loss contingency
b. No temporary differences existed at the beginning of 2024.
($ in millions)
Book
Value
Tax
Basis
$ 120
$ 90
50
25
0
0
Future Taxable
(Deductible)
Amount
$ 30
50
(25)
c. Pretax accounting income was $200 million and taxable income was $145 million for the year ended December 31, 2024. The
tax rate is 25%.
Required:
1. Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2024.
2. What is the 2024 net income?
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