Explanation Income Tax Expenses: The expenses which are related to the taxable income of the individuals and business entities for an accounting period, and are recognized by them for the purpose of federal government and state government tax are called as income tax expenses. Complete the schedule: Item Amount Taxable Income 2016 (1) $86,000 Future Taxable Amount 12/31/16 (2) $3,000 Increase in future deductible amount during 2016 (3) $500 Income tax expense for 2016 (4) $25,930 Table (1) Working Note (1): Compute taxable income for 2016: Taxable Income for 2016= $25,800 ( income tax payable ) × 100 30 = $ 86 , 000 Working Note (2): Compute future taxable income for 12/31/16: Future Taxable Amount ( 12 / 31 / 16 ) = Total deferred tax liability × 100 35 ( tax rate of 2018 ) = { $ 750 ( begining deferred tax asset ) + $ 300 ( Increase in the year ) } × 100 35 = $1,050 ×

Intermediate Accounting: Reporting and Analysis

2nd Edition

ISBN: 9781285453828

Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher: Cengage Learning

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Deferred Tax

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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Chapter 18, Problem 8E

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Chapter 18 Solutions

Intermediate Accounting: Reporting and Analysis

Ch. 18 - What source is used to determine income tax...Ch. 18 - Prob. 2GI Ch. 18 - Prob. 3GI Ch. 18 - Prob. 4GI Ch. 18 - Prob. 5GI Ch. 18 - Prob. 6GI Ch. 18 - What are the three characteristics of a liability,...Ch. 18 - Prob. 8GI Ch. 18 - When does a corporation establish a valuation...Ch. 18 - List the steps necessary to measure and record a...

Ch. 18 - Prob. 11GI Ch. 18 - Prob. 12GI Ch. 18 - Prob. 13GI Ch. 18 - Prob. 14GI Ch. 18 - Prob. 15GI Ch. 18 - Describe an operating loss carryforward. List the...Ch. 18 - Prob. 17GI Ch. 18 - Prob. 18GI Ch. 18 - Prob. 19GI Ch. 18 - Prob. 20GI Ch. 18 - Prob. 21GI Ch. 18 - Prob. 22GI Ch. 18 - Prob. 23GI Ch. 18 - Prob. 24GI Ch. 18 - Which of the following is not a cause of a...Ch. 18 - Which of the following is an argument in favor of...Ch. 18 - Prob. 3MC Ch. 18 - Prob. 4MC Ch. 18 - Prob. 5MC Ch. 18 - Prob. 6MC Ch. 18 - Prob. 7MC Ch. 18 - Prob. 8MC Ch. 18 - Prob. 9MC Ch. 18 - Which component of current income is not disclosed...Ch. 18 - Parker Company identifies depreciation as the only...Ch. 18 - Refer to RE18-1. Assume that Parkers taxable...Ch. 18 - In the current year, Madison Corporation had...Ch. 18 - Refer to RE18-3. Prepare the additional journal...Ch. 18 - Turnip Company purchased an asset at a cost of...Ch. 18 - Prob. 6RE Ch. 18 - Compute Radish Companys taxable income given the...Ch. 18 - Prob. 8RE Ch. 18 - Prob. 9RE Ch. 18 - Kline Company has the following items of pretax...Ch. 18 - Prob. 11RE Ch. 18 - Cole Company had a deferred tax liability of 1,000...Ch. 18 - Prob. 1E Ch. 18 - Prob. 2E Ch. 18 - Prob. 3E Ch. 18 - Prob. 4E Ch. 18 - Prob. 5E Ch. 18 - Prob. 6E Ch. 18 - Prob. 7E Ch. 18 - Prob. 8E Ch. 18 - Prob. 9E Ch. 18 - Prob. 10E Ch. 18 - Prob. 11E Ch. 18 - Temporary and Permanent Differences Lin has just...Ch. 18 - Prob. 13E Ch. 18 - Prob. 14E Ch. 18 - Prob. 15E Ch. 18 - Prob. 16E Ch. 18 - Prob. 17E Ch. 18 - Prob. 18E Ch. 18 - Prob. 19E Ch. 18 - Prob. 20E Ch. 18 - Uncertain Tax Position At the end of the current...Ch. 18 - Prob. 1P Ch. 18 - Temporary and Permanent Differences In the current...Ch. 18 - Prob. 3P Ch. 18 - Prob. 4P Ch. 18 - Prob. 5P Ch. 18 - Prob. 6P Ch. 18 - Prob. 7P Ch. 18 - Prob. 8P Ch. 18 - Prob. 9P Ch. 18 - Prob. 10P Ch. 18 - Prob. 11P Ch. 18 - Prob. 12P Ch. 18 - Prob. 13P Ch. 18 - Comprehensive At the beginning of 2016, Norris...Ch. 18 - Prob. 15P Ch. 18 - Prob. 1C Ch. 18 - Prob. 2C Ch. 18 - Operating Losses The Internal Revenue Code allows...Ch. 18 - Interperiod and Intraperiod Tax Allocation Income...Ch. 18 - Prob. 5C Ch. 18 - Prob. 6C Ch. 18 - Permanent and Temporary Differences To implement...Ch. 18 - Prob. 8C Ch. 18 - Prob. 9C Ch. 18 - Prob. 10C

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