a.
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.
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.
c.
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
d.
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.
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.
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.

Want to see the full answer?
Check out a sample textbook solution
Chapter 17 Solutions
Intermediate Accounting
- Ironside Inc. paid $560 in dividends and $640 in interest this past year. Common stock increased by $270 and retained earnings decreased by $150. What is the net income for the year? a. $560 b. $390 c. $410 d. $610arrow_forwardProvide answerarrow_forwardA town council is considering converting an abandoned mall into a community arts center. They estimate the benefit to the community to be worth $2,400,000. Contractors have estimated a net cost to build the center and refurbish the property to be $3,400,000. Should they proceed with the project? a. 0.71 and Yes b. 0.71 and No c. 1.42 and Yes d. 1.42 and Noarrow_forward
- A town council is considering converting an abandoned mall into a community arts center. They estimate the benefit to the community to be worth $2,400,000. Contractors have estimated a net cost to build the center and refurbish the property to be $3,400,000. Should they proceed with the project? a. 0.71 and Yes b. 0.71 and No c. 1.42 and Yes d. 1.42 and No. Provide accurate answer to this general accounting problemarrow_forwardA firm has net working capital of $720, net fixed assets of $2,980, and sales of $7,800. How many dollars worth of sales are generated from every $1 in total assets? solve this General accounting problemarrow_forwardHi expert please given correct answer with accounting questionarrow_forward
- Please provide the correct answer to this general accounting problem using accurate calculations.arrow_forwardHi expert please given correct answer with General accountingarrow_forwardFor external financial reporting, which costing method is required? a) Variable costing b) Standard costing c) Direct costing d) Absorption costing need helparrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





