The information that follows pertains to Richards Refrigeration, Incorporated: At December 31, 2024, temporary differences existed between the financial statement book values and the tax bases of the following: ($ in millions) Book Value Tax Basis Future Taxable (Deductible) Amount Buildings and equipment (net of accumulated depreciation) $ 120 $ 90 $ 30 Prepaid insurance 50 0 50 Liability-Loss contingency 25 0 (25) No temporary differences existed at the beginning of 2024. Pretax accounting income was $200 million and taxable income was $145 million for the year ended December 31, 2024. The tax rate is 25%. Required: Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2024. What is the 2024 net income? General Journal Record 2024 income taxes Transaction General Journal Debit Credit 1
The information that follows pertains to Richards Refrigeration, Incorporated: At December 31, 2024, temporary differences existed between the financial statement book values and the tax bases of the following: ($ in millions) Book Value Tax Basis Future Taxable (Deductible) Amount Buildings and equipment (net of accumulated depreciation) $ 120 $ 90 $ 30 Prepaid insurance 50 0 50 Liability-Loss contingency 25 0 (25) No temporary differences existed at the beginning of 2024. Pretax accounting income was $200 million and taxable income was $145 million for the year ended December 31, 2024. The tax rate is 25%. Required: Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2024. What is the 2024 net income? General Journal Record 2024 income taxes Transaction General Journal Debit Credit 1
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 74E
Related questions
Question
Intermediate Accounting ll ch 16
6. The information that follows pertains to Richards Refrigeration, Incorporated:
-
At December 31, 2024, temporary differences existed between the financial statement book values and the tax bases of the following:
($ in millions)
Book Value | Tax Basis |
Future Taxable (Deductible) Amount |
|
Buildings and equipment (net of |
$ 120 | $ 90 | $ 30 |
Prepaid insurance | 50 | 0 | 50 |
Liability-Loss contingency | 25 | 0 | (25) |
-
No temporary differences existed at the beginning of 2024.
-
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:
- Complete the following table given below and prepare the appropriate
journal entry to record income taxes for 2024. - What is the 2024 net income?
- General Journal
Record 2024 income taxes
Transaction | General Journal | Debit | Credit |
1 | |||
![Required 1
Calculation
General
Journal
Net income
Required 2
What is the 2024 net income?
Note: Enter your answer in millions (i.e., 5,000,000 should be entered as 5).
million
< General Journal
Required 2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb19ac792-f274-4206-9191-c46f3b775258%2Fc5b45760-bab6-4a89-b539-41dffc7e8842%2Flmbxhp5_processed.png&w=3840&q=75)
Transcribed Image Text:Required 1
Calculation
General
Journal
Net income
Required 2
What is the 2024 net income?
Note: Enter your answer in millions (i.e., 5,000,000 should be entered as 5).
million
< General Journal
Required 2
![Required 1
Calculation
General
Journal
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
Pretax accounting income
Permanent differences
Income subject to taxation
Temporary Differences
Required 2
Income taxable in current year
Amount (in
millions)
$
200.00
X
X
X
X
X
Tax Rate
Required 1 Calculation
=
II
=
=
||
II
Tax (in
millions)
General Journal
Recorded as:
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb19ac792-f274-4206-9191-c46f3b775258%2Fc5b45760-bab6-4a89-b539-41dffc7e8842%2Faqobkj_processed.png&w=3840&q=75)
Transcribed Image Text:Required 1
Calculation
General
Journal
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
Pretax accounting income
Permanent differences
Income subject to taxation
Temporary Differences
Required 2
Income taxable in current year
Amount (in
millions)
$
200.00
X
X
X
X
X
Tax Rate
Required 1 Calculation
=
II
=
=
||
II
Tax (in
millions)
General Journal
Recorded as:
>
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