Financial Accounting
9th Edition
ISBN: 9781259222139
Author: Robert Libby, Patricia Libby, Frank Hodge Ch
Publisher: McGraw-Hill Education
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Chapter 9, Problem 9.21E
1.
To determine
Compute the income tax expenses by assuming that no tax have been paid.
2.
To determine
Explain the reason for considering tax expense is not simply the amount of cash paid during the year.
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Determine the amount of cash paid for income taxes in each of the nine independent situations below. All dollars are in millions.
Note: Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).
Deferred Tax Liability
Increase (Decrease)
Cash Paid for
Taxes
Situation
Income Tax
Expense
Income Tax Payable
Increase (Decrease)
1
19
0
2
19
1.8
3
19
(1.8)
4
19
0
0
0
2.9
5
19
0
(2.9)
6
19
1.8
2.9
7
19
1.8
(2.9)
00
8
19
(1.8)
9
19
(1.8)
(2.9)
2.9
What amount of current income tax liability should be reported at year end?
a. ₱ 1,780,000
b. ₱ 2,280,000
c. ₱ 2,880,000
d. ₱ 2,580,000
Assume the following:
Single filing status.
• Total Income of $100,000
.
.
.
Adjustments of $2,000
Deductions of $12,950
• Tax Payments of $3,000
• Tax Credit of $4,000
How much do you still owe in taxes?
Hint: calculate your Taxable Income. Then calculate your Total Taxes Due.
Tax Rate
10%
12%
22%
24%
32%
35%
37%
O $13,400
Ⓒ$7,018.50
$13,138.50
$10,400
2023 Federal Income Tax Brackets
Single
Up to $11,000
$11,001 to $44,725
$44,726 to $95,375
$95,376 to $182,100
$182,101 to $231,250
$231,251 to $578,125
Over $578,126
Married Filing Jointly Head of Household
Up to $15,700
$15,701 to $59,850
$59,851 to $95,350
$95,351 to $182,100
$182,101 to $231,250
$231,251 to $578,100
Over $578,101
Up to $22,000
$22,001 to $89,450
$89,451 to $190,750
$190,751 to $364,200
$364,201 to $462,500
$462,501 to $693,750
Over $693,751
Chapter 9 Solutions
Financial Accounting
Ch. 9 - Prob. 1QCh. 9 - Prob. 2QCh. 9 - Prob. 3QCh. 9 - Prob. 4QCh. 9 - Prob. 5QCh. 9 - Prob. 6QCh. 9 - Prob. 7QCh. 9 - Define deferred revenue. Why is it a liability?Ch. 9 - Prob. 9QCh. 9 - Define working capital. How is working capital...
Ch. 9 - Prob. 11QCh. 9 - When a company signs a capital lease, does it...Ch. 9 - Prob. 13QCh. 9 - Define annuity.Ch. 9 - Prob. 15QCh. 9 - Prob. 16QCh. 9 - What is the present value factor for an annuity of...Ch. 9 - The university golf team needs to buy a car to...Ch. 9 - Which of the following best describes accrued...Ch. 9 - Prob. 4MCQCh. 9 - A company is facing a lawsuit from a customer. It...Ch. 9 - Which of the following transactions would usually...Ch. 9 - How is working capital calculated? a. Current...Ch. 9 - Prob. 8MCQCh. 9 - SmallFish Company borrowed 100,000 at 8% interest...Ch. 9 - Prob. 10MCQCh. 9 - Prob. 9.1MECh. 9 - Computing and Interpreting Accounts Payable...Ch. 9 - Prob. 9.3MECh. 9 - Prob. 9.4MECh. 9 - Prob. 9.5MECh. 9 - Prob. 9.6MECh. 9 - Prob. 9.7MECh. 9 - Prob. 9.8MECh. 9 - Prob. 9.9MECh. 9 - Computing the Present Value of an Annuity What is...Ch. 9 - Prob. 9.11MECh. 9 - Prob. 9.12MECh. 9 - Prob. 9.1ECh. 9 - Recording Payroll Costs Paul Company completed the...Ch. 9 - Prob. 9.3ECh. 9 - Recording a Note Payable through Its Time to...Ch. 9 - Prob. 9.5ECh. 9 - Prob. 9.6ECh. 9 - Prob. 9.7ECh. 9 - Prob. 9.8ECh. 9 - Reporting Contingent Liabilities Jones Soda is a...Ch. 9 - Prob. 9.10ECh. 9 - Prob. 9.11ECh. 9 - Prob. 9.12ECh. 9 - Computing Four Present Value Problems On January 1...Ch. 9 - Prob. 9.14ECh. 9 - Prob. 9.15ECh. 9 - Prob. 9.16ECh. 9 - Prob. 9.17ECh. 9 - Prob. 9.18ECh. 9 - Prob. 9.19ECh. 9 - Prob. 9.20ECh. 9 - Prob. 9.21ECh. 9 - Prob. 9.22ECh. 9 - Prob. 9.23ECh. 9 - Prob. 9.24ECh. 9 - Recording and Reporting Current Liabilities LO9-1...Ch. 9 - Prob. 9.2PCh. 9 - Prob. 9.3PCh. 9 - Recording and Reporting Accrued Liabilities and...Ch. 9 - Prob. 9.5PCh. 9 - Prob. 9.6PCh. 9 - Prob. 9.7PCh. 9 - Prob. 9.8PCh. 9 - Prob. 9.9PCh. 9 - Prob. 9.10PCh. 9 - Prob. 9.11PCh. 9 - Prob. 9.12PCh. 9 - Prob. 9.13PCh. 9 - Prob. 9.14PCh. 9 - ALTERNATE PROBLEMS AP9-1 Recording and Reporting...Ch. 9 - Prob. 9.2APCh. 9 - Prob. 9.3APCh. 9 - Prob. 9.4APCh. 9 - Prob. 9.5APCh. 9 - Prob. 9.6APCh. 9 - Prob. 9.7APCh. 9 - Prob. 9.8APCh. 9 - Prob. 9.1CONCh. 9 - Annual Report Cases Finding Financial Information...Ch. 9 - Finding Financial Information Refer to the...Ch. 9 - Prob. 9.3CPCh. 9 - Prob. 9.4CPCh. 9 - Prob. 9.5CP
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How to Calculate Federal Income Tax; Author: Edspira;https://www.youtube.com/watch?v=2LrvRqOEYk8;License: Standard Youtube License