Deferred Tax Liability : The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do. Income tax payable for year 2022. Given Information: Book income for 2022 is $500,000. Cash collected for future delivery amounted to $70,000. Tax free interest amounted to $8,000. Warranty expense amounted to $10,000. Non-deductible insurance premium amounted to $5,000. Tax rate is 40%.

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Answer 1

Question

Chapter 17, Problem 17.15P

a.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Income tax payable for year 2022.

Given Information:

Book income for 2022 is $500,000.

Cash collected for future delivery amounted to $70,000.

Tax free interest amounted to $8,000.

Warranty expense amounted to $10,000.

Non-deductible insurance premium amounted to $5,000.

Tax rate is 40%.

b.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Deferred tax asset and liability at the end of 2022.

c.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Income tax expense for year 2022 and prepare journal entry to record it.

d.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Effective tax rate and reconciliation with federal tax rate.

e.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

To prepare: Journal entry to record non-realization of deferred tax asset over the reversal period.

f.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

To prepare: Journal entry to record deferred tax asset and liability on January 1, 2020.

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Answer 2

Question

Chapter 17, Problem 17.15P

a.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Income tax payable for year 2022.

Given Information:

Book income for 2022 is $500,000.

Cash collected for future delivery amounted to $70,000.

Tax free interest amounted to $8,000.

Warranty expense amounted to $10,000.

Non-deductible insurance premium amounted to $5,000.

Tax rate is 40%.

b.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Deferred tax asset and liability at the end of 2022.

c.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Income tax expense for year 2022 and prepare journal entry to record it.

d.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Effective tax rate and reconciliation with federal tax rate.

e.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

To prepare: Journal entry to record non-realization of deferred tax asset over the reversal period.

f.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

To prepare: Journal entry to record deferred tax asset and liability on January 1, 2020.

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Answer 3

Question

Chapter 17, Problem 17.15P

a.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Income tax payable for year 2022.

Given Information:

Book income for 2022 is $500,000.

Cash collected for future delivery amounted to $70,000.

Tax free interest amounted to $8,000.

Warranty expense amounted to $10,000.

Non-deductible insurance premium amounted to $5,000.

Tax rate is 40%.

b.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Deferred tax asset and liability at the end of 2022.

c.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Income tax expense for year 2022 and prepare journal entry to record it.

d.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Effective tax rate and reconciliation with federal tax rate.

e.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

To prepare: Journal entry to record non-realization of deferred tax asset over the reversal period.

f.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

To prepare: Journal entry to record deferred tax asset and liability on January 1, 2020.

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Answer 4

Question

Chapter 17, Problem 17.15P

a.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Income tax payable for year 2022.

Given Information:

Book income for 2022 is $500,000.

Cash collected for future delivery amounted to $70,000.

Tax free interest amounted to $8,000.

Warranty expense amounted to $10,000.

Non-deductible insurance premium amounted to $5,000.

Tax rate is 40%.

b.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Deferred tax asset and liability at the end of 2022.

c.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Income tax expense for year 2022 and prepare journal entry to record it.

d.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Effective tax rate and reconciliation with federal tax rate.

e.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

To prepare: Journal entry to record non-realization of deferred tax asset over the reversal period.

f.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

To prepare: Journal entry to record deferred tax asset and liability on January 1, 2020.

Expert Solution & Answer

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Answer 5

Chapter 17, Problem 17.15P

a.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Income tax payable for year 2022.

Given Information:

Book income for 2022 is $500,000.

Cash collected for future delivery amounted to $70,000.

Tax free interest amounted to $8,000.

Warranty expense amounted to $10,000.

Non-deductible insurance premium amounted to $5,000.

Tax rate is 40%.

b.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Deferred tax asset and liability at the end of 2022.

c.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Income tax expense for year 2022 and prepare journal entry to record it.

d.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Effective tax rate and reconciliation with federal tax rate.

e.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

To prepare: Journal entry to record non-realization of deferred tax asset over the reversal period.

f.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

To prepare: Journal entry to record deferred tax asset and liability on January 1, 2020.

Answer 6

Chapter 17, Problem 17.15P

a.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Income tax payable for year 2022.

Given Information:

Book income for 2022 is $500,000.

Cash collected for future delivery amounted to $70,000.

Tax free interest amounted to $8,000.

Warranty expense amounted to $10,000.

Non-deductible insurance premium amounted to $5,000.

Tax rate is 40%.

Answer 7

Chapter 17, Problem 17.15P

a.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Income tax payable for year 2022.

Given Information:

Book income for 2022 is $500,000.

Cash collected for future delivery amounted to $70,000.

Tax free interest amounted to $8,000.

Warranty expense amounted to $10,000.

Non-deductible insurance premium amounted to $5,000.

Tax rate is 40%.

Answer 8

b.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Deferred tax asset and liability at the end of 2022.

Answer 9

b.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Deferred tax asset and liability at the end of 2022.

Answer 10

c.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Income tax expense for year 2022 and prepare journal entry to record it.

Answer 11

c.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Income tax expense for year 2022 and prepare journal entry to record it.

Answer 12

d.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Effective tax rate and reconciliation with federal tax rate.

Answer 13

d.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Effective tax rate and reconciliation with federal tax rate.

Answer 14

e.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

To prepare: Journal entry to record non-realization of deferred tax asset over the reversal period.

Answer 15

e.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

To prepare: Journal entry to record non-realization of deferred tax asset over the reversal period.

Answer 16

f.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

To prepare: Journal entry to record deferred tax asset and liability on January 1, 2020.

Answer 17

f.

To determine

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

To prepare: Journal entry to record deferred tax asset and liability on January 1, 2020.

Answer 18

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Answer 19

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Answer 20

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Answer 21

Ch. 17 - Prob. 17.1Q Ch. 17 - When will income tax expense and income taxes...Ch. 17 - Will permanent differences cause the effective tax...Ch. 17 - When do permanent differences arise?Ch. 17 - How are deferred tax assets and deferred tax...Ch. 17 - Prob. 17.6Q Ch. 17 - Prob. 17.7Q Ch. 17 - Prob. 17.8Q Ch. 17 - Prob. 17.9Q Ch. 17 - How does a firm determine the need for a valuation...

Deferred Tax Liability: The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do. Deferred tax asset and liability at the end of 2022.

Deferred Tax Liability: The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do. Income tax expense for year 2022 and prepare journal entry to record it.

Deferred Tax Liability: The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do. Effective tax rate and reconciliation with federal tax rate.

Deferred Tax Liability: The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do. To prepare: Journal entry to record deferred tax asset and liability on January 1, 2020.

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Chapter 17 Solutions

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Deferred tax asset and liability at the end of 2022.

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Income tax expense for year 2022 and prepare journal entry to record it.

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

Effective tax rate and reconciliation with federal tax rate.

Deferred Tax Liability:

The difference of the carrying value of tax and the value calculated by the company is known as the deferred tax liability, it shows the expected future tax payment company has to do.

To prepare: Journal entry to record deferred tax asset and liability on January 1, 2020.