Journal entries to record the NOL carry back and NOL carry forward. Given Information: Taxable income for year 2013 is $300,000 and tax rate is 34%. Taxable income for year 2014 is $100,000 and tax rate is 25%. Taxable income for year 2015 is $50,000 and tax rate is 15%.

Question

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Answer 1

Question

Definition Definition Items on the balance sheet that are created when the tax paid is more than tax considered on the income statement. Deferred tax assets result from overpayment and advance payment of taxes. They are recorded on the assets side of the balance sheet. A deferred tax asset results in the reduction of a future tax payment and is beneficial to the company. It arises when the profit as per tax laws is more than the profit as per books of accounts.

Chapter 17, Problem 17.6P

a.

To determine

To prepare: Journal entries to record the NOL carry back and NOL carry forward.

Given Information:

Taxable income for year 2013 is $300,000 and tax rate is 34%.

Taxable income for year 2014 is $100,000 and tax rate is 25%.

Taxable income for year 2015 is $50,000 and tax rate is 15%.

b.

To determine

The net income or loss for the year 2016.

c.

To determine

To prepare: Journal entry to record income tax benefit in year 2017.

d.

To determine

The net income of the year 2017.

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During September, the assembly department completed 10,500 units of a product that had a standard materials cost of 3.0 square feet per unit at $2.40 per square foot. The actual materials purchased consisted of 22,000 square feet at $2.60 per square foot, for a total cost of $57,200. The actual material used during this period was 25,500 square feet. Compute the materials price variance and materials usage variance.

Answer 2

Question

Definition Definition Items on the balance sheet that are created when the tax paid is more than tax considered on the income statement. Deferred tax assets result from overpayment and advance payment of taxes. They are recorded on the assets side of the balance sheet. A deferred tax asset results in the reduction of a future tax payment and is beneficial to the company. It arises when the profit as per tax laws is more than the profit as per books of accounts.

Chapter 17, Problem 17.6P

a.

To determine

To prepare: Journal entries to record the NOL carry back and NOL carry forward.

Given Information:

Taxable income for year 2013 is $300,000 and tax rate is 34%.

Taxable income for year 2014 is $100,000 and tax rate is 25%.

Taxable income for year 2015 is $50,000 and tax rate is 15%.

b.

To determine

The net income or loss for the year 2016.

c.

To determine

To prepare: Journal entry to record income tax benefit in year 2017.

d.

To determine

The net income of the year 2017.

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Answer 3

Question

Definition Definition Items on the balance sheet that are created when the tax paid is more than tax considered on the income statement. Deferred tax assets result from overpayment and advance payment of taxes. They are recorded on the assets side of the balance sheet. A deferred tax asset results in the reduction of a future tax payment and is beneficial to the company. It arises when the profit as per tax laws is more than the profit as per books of accounts.

Chapter 17, Problem 17.6P

a.

To determine

To prepare: Journal entries to record the NOL carry back and NOL carry forward.

Given Information:

Taxable income for year 2013 is $300,000 and tax rate is 34%.

Taxable income for year 2014 is $100,000 and tax rate is 25%.

Taxable income for year 2015 is $50,000 and tax rate is 15%.

b.

To determine

The net income or loss for the year 2016.

c.

To determine

To prepare: Journal entry to record income tax benefit in year 2017.

d.

To determine

The net income of the year 2017.

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Answer 4

Question

Definition Definition Items on the balance sheet that are created when the tax paid is more than tax considered on the income statement. Deferred tax assets result from overpayment and advance payment of taxes. They are recorded on the assets side of the balance sheet. A deferred tax asset results in the reduction of a future tax payment and is beneficial to the company. It arises when the profit as per tax laws is more than the profit as per books of accounts.

Chapter 17, Problem 17.6P

a.

To determine

To prepare: Journal entries to record the NOL carry back and NOL carry forward.

Given Information:

Taxable income for year 2013 is $300,000 and tax rate is 34%.

Taxable income for year 2014 is $100,000 and tax rate is 25%.

Taxable income for year 2015 is $50,000 and tax rate is 15%.

b.

To determine

The net income or loss for the year 2016.

c.

To determine

To prepare: Journal entry to record income tax benefit in year 2017.

d.

To determine

The net income of the year 2017.

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Answer 5

Chapter 17, Problem 17.6P

a.

To determine

To prepare: Journal entries to record the NOL carry back and NOL carry forward.

Given Information:

Taxable income for year 2013 is $300,000 and tax rate is 34%.

Taxable income for year 2014 is $100,000 and tax rate is 25%.

Taxable income for year 2015 is $50,000 and tax rate is 15%.

b.

To determine

The net income or loss for the year 2016.

c.

To determine

To prepare: Journal entry to record income tax benefit in year 2017.

d.

To determine

The net income of the year 2017.

Answer 6

Chapter 17, Problem 17.6P

a.

To determine

To prepare: Journal entries to record the NOL carry back and NOL carry forward.

Given Information:

Taxable income for year 2013 is $300,000 and tax rate is 34%.

Taxable income for year 2014 is $100,000 and tax rate is 25%.

Taxable income for year 2015 is $50,000 and tax rate is 15%.

Answer 7

Chapter 17, Problem 17.6P

a.

To determine

To prepare: Journal entries to record the NOL carry back and NOL carry forward.

Given Information:

Taxable income for year 2013 is $300,000 and tax rate is 34%.

Taxable income for year 2014 is $100,000 and tax rate is 25%.

Taxable income for year 2015 is $50,000 and tax rate is 15%.

Answer 8

b.

To determine

The net income or loss for the year 2016.

Answer 9

b.

To determine

The net income or loss for the year 2016.

Answer 10

c.

To determine

To prepare: Journal entry to record income tax benefit in year 2017.

Answer 11

c.

To determine

To prepare: Journal entry to record income tax benefit in year 2017.

Answer 12

d.

To determine

The net income of the year 2017.

Answer 13

d.

To determine

The net income of the year 2017.

Answer 14

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Answer 15

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Answer 16

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Answer 17

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...

Journal entries to record the NOL carry back and NOL carry forward. Given Information: Taxable income for year 2013 is $300,000 and tax rate is 34%. Taxable income for year 2014 is $100,000 and tax rate is 25%. Taxable income for year 2015 is $50,000 and tax rate is 15%.

To prepare: Journal entries to record the NOL carry back and NOL carry forward. Given Information: Taxable income for year 2013 is $300,000 and tax rate is 34%. Taxable income for year 2014 is $100,000 and tax rate is 25%. Taxable income for year 2015 is $50,000 and tax rate is 15%.

The net income or loss for the year 2016.

To prepare: Journal entry to record income tax benefit in year 2017.

The net income of the year 2017.

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Chapter 17 Solutions

To prepare: Journal entries to record the NOL carry back and NOL carry forward.

Given Information:

Taxable income for year 2013 is $300,000 and tax rate is 34%.

Taxable income for year 2014 is $100,000 and tax rate is 25%.

Taxable income for year 2015 is $50,000 and tax rate is 15%.