9th Edition

ISBN: 9781260998726

Author: SPICELAND

Publisher: MCG

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Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue autho…

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Textbook Question

Chapter 16, Problem 16.18E

Multiple temporary differences; record income taxes

• LO16–6

The information that follows pertains to Esther Food Products:

a. At December 31, 2018, temporary differences were associated with the following future taxable (deductible) amounts:

Depreciation	$ 60,000
Prepaid expenses	17,000
Warranty expenses	(12,000)

b. No temporary differences existed at the beginning of 2018.

c. Pretax accounting income was $80,000 and taxable income was $15,000 for the year ended December 31, 2018.

d. The tax rate is 40%.

Required:

Determine the amounts necessary to record income taxes for 2018, and prepare the appropriate journal entry.

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Chapter 16, Problem 16.17E

Chapter 16, Problem 16.19E

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Accounting Question

Chapter 16 Solutions

INTERMEDIATE ACCOUNTING RMU 9TH EDITION

Ch. 16 - Prob. 16.1Q Ch. 16 - A deferred tax liability (or asset) is described...Ch. 16 - Prob. 16.3Q Ch. 16 - Prob. 16.4Q Ch. 16 - Temporary differences result in future taxable or...Ch. 16 - Identify three examples of differences with no...Ch. 16 - The income tax rate for Hudson Refinery has been...Ch. 16 - Suppose a tax reform bill is enacted that causes...Ch. 16 - A net operating loss occurs when tax-deductible...Ch. 16 - Prob. 16.10Q

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Solution Summary: The author explains the calculation of income tax payable and the amount of deferred tax assets.

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