Deferred tax asset : The process of paying over and above the required level of tax is termed as deferred tax asset. These taxes are calculated and paid on the future expected income. In case if the future expected inflow of cash reduces, then the company can claim the excess tax paid in the form of tax relief or refund. Deferred tax liability : Some business activities may create dissimilarity in the amount recorded in the books and the taxable income. These differences create deferred tax liability. For example, Mr.J is a car dealer who sold a car on installment. In actual the sale happened in the current year but the benefits are receivable in the future years. This creates a difference in the books of accounts and the taxable account. (a) To determine the income tax expense, income tax payable and the deferred tax expense.

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Answer 1

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Chapter 19, Problem 11ICA

To determine

Deferred tax asset: The process of paying over and above the required level of tax is termed as deferred tax asset. These taxes are calculated and paid on the future expected income. In case if the future expected inflow of cash reduces, then the company can claim the excess tax paid in the form of tax relief or refund.

Deferred tax liability: Some business activities may create dissimilarity in the amount recorded in the books and the taxable income. These differences create deferred tax liability. For example, Mr.J is a car dealer who sold a car on installment. In actual the sale happened in the current year but the benefits are receivable in the future years. This creates a difference in the books of accounts and the taxable account.

(a)

To determine the income tax expense, income tax payable and the deferred tax expense.

To determine

(b)

To record: To record journal entry for the unrealized deferred tax asset worth of $30,000.

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For which of the following would year-end accrual of a current liability be optional? a. Current portion of a long-term lease obligation that comes due next year b. A declared property dividend c. Sick pay benefits that accumulate but do not vest d. Short-term debt that is being refinanced on a long-term basis

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Swifty Supply Co. has the following transactions related to notes receivable during the last 2 months of 2027. The company does not make entries to accrue interest except at December 31. Nov. 1 Loaned $30,000 cash to Manny Lopez on a 12 month, 10% note. Dec. 11 Sold goods to Ralph Kremer, Inc., receiving a $85,500, 90-day, 8% note. 16 Received a $87,840, 180 day. 10% note to settle an open account from Joe Fernetti. 31 Accrued interest revenue on all notes receivable. (a) Journalize the transactions for Swifty Supply Co. (Ignore entries for cost of goods sold.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Use 360 days for cal in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit

Answer 2

Question

Chapter 19, Problem 11ICA

To determine

Deferred tax asset: The process of paying over and above the required level of tax is termed as deferred tax asset. These taxes are calculated and paid on the future expected income. In case if the future expected inflow of cash reduces, then the company can claim the excess tax paid in the form of tax relief or refund.

Deferred tax liability: Some business activities may create dissimilarity in the amount recorded in the books and the taxable income. These differences create deferred tax liability. For example, Mr.J is a car dealer who sold a car on installment. In actual the sale happened in the current year but the benefits are receivable in the future years. This creates a difference in the books of accounts and the taxable account.

(a)

To determine the income tax expense, income tax payable and the deferred tax expense.

To determine

(b)

To record: To record journal entry for the unrealized deferred tax asset worth of $30,000.

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Answer 3

Question

Chapter 19, Problem 11ICA

To determine

Deferred tax asset: The process of paying over and above the required level of tax is termed as deferred tax asset. These taxes are calculated and paid on the future expected income. In case if the future expected inflow of cash reduces, then the company can claim the excess tax paid in the form of tax relief or refund.

Deferred tax liability: Some business activities may create dissimilarity in the amount recorded in the books and the taxable income. These differences create deferred tax liability. For example, Mr.J is a car dealer who sold a car on installment. In actual the sale happened in the current year but the benefits are receivable in the future years. This creates a difference in the books of accounts and the taxable account.

(a)

To determine the income tax expense, income tax payable and the deferred tax expense.

To determine

(b)

To record: To record journal entry for the unrealized deferred tax asset worth of $30,000.

Expert Solution & Answer

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Answer 4

Question

Chapter 19, Problem 11ICA

To determine

Deferred tax asset: The process of paying over and above the required level of tax is termed as deferred tax asset. These taxes are calculated and paid on the future expected income. In case if the future expected inflow of cash reduces, then the company can claim the excess tax paid in the form of tax relief or refund.

Deferred tax liability: Some business activities may create dissimilarity in the amount recorded in the books and the taxable income. These differences create deferred tax liability. For example, Mr.J is a car dealer who sold a car on installment. In actual the sale happened in the current year but the benefits are receivable in the future years. This creates a difference in the books of accounts and the taxable account.

(a)

To determine the income tax expense, income tax payable and the deferred tax expense.

To determine

(b)

To record: To record journal entry for the unrealized deferred tax asset worth of $30,000.

Expert Solution & Answer

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Answer 5

Chapter 19, Problem 11ICA

To determine

Deferred tax asset: The process of paying over and above the required level of tax is termed as deferred tax asset. These taxes are calculated and paid on the future expected income. In case if the future expected inflow of cash reduces, then the company can claim the excess tax paid in the form of tax relief or refund.

Deferred tax liability: Some business activities may create dissimilarity in the amount recorded in the books and the taxable income. These differences create deferred tax liability. For example, Mr.J is a car dealer who sold a car on installment. In actual the sale happened in the current year but the benefits are receivable in the future years. This creates a difference in the books of accounts and the taxable account.

(a)

To determine the income tax expense, income tax payable and the deferred tax expense.

To determine

(b)

To record: To record journal entry for the unrealized deferred tax asset worth of $30,000.

Answer 6

Chapter 19, Problem 11ICA

To determine

Deferred tax asset: The process of paying over and above the required level of tax is termed as deferred tax asset. These taxes are calculated and paid on the future expected income. In case if the future expected inflow of cash reduces, then the company can claim the excess tax paid in the form of tax relief or refund.

Deferred tax liability: Some business activities may create dissimilarity in the amount recorded in the books and the taxable income. These differences create deferred tax liability. For example, Mr.J is a car dealer who sold a car on installment. In actual the sale happened in the current year but the benefits are receivable in the future years. This creates a difference in the books of accounts and the taxable account.

(a)

To determine the income tax expense, income tax payable and the deferred tax expense.

Answer 7

Chapter 19, Problem 11ICA

To determine

Deferred tax asset: The process of paying over and above the required level of tax is termed as deferred tax asset. These taxes are calculated and paid on the future expected income. In case if the future expected inflow of cash reduces, then the company can claim the excess tax paid in the form of tax relief or refund.

Deferred tax liability: Some business activities may create dissimilarity in the amount recorded in the books and the taxable income. These differences create deferred tax liability. For example, Mr.J is a car dealer who sold a car on installment. In actual the sale happened in the current year but the benefits are receivable in the future years. This creates a difference in the books of accounts and the taxable account.

(a)

To determine the income tax expense, income tax payable and the deferred tax expense.

Answer 8

To determine

(b)

To record: To record journal entry for the unrealized deferred tax asset worth of $30,000.

Answer 9

To determine

(b)

To record: To record journal entry for the unrealized deferred tax asset worth of $30,000.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 19 - Prob. 1Q Ch. 19 - Prob. 2Q Ch. 19 - Prob. 3Q Ch. 19 - Prob. 4Q Ch. 19 - Prob. 5Q Ch. 19 - Prob. 6Q Ch. 19 - Prob. 7Q Ch. 19 - Prob. 8Q Ch. 19 - Prob. 9Q Ch. 19 - Prob. 10Q

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(b)

To record: To record journal entry for the unrealized deferred tax asset worth of $30,000.

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(b) To record: To record journal entry for the unrealized deferred tax asset worth of $30,000.

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(b)

To record: To record journal entry for the unrealized deferred tax asset worth of $30,000.