Financial Accounting
9th Edition
ISBN: 9781259222139
Author: Robert Libby, Patricia Libby, Frank Hodge Ch
Publisher: McGraw-Hill Education
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Chapter S, Problem 4P
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How much is the Input tax should be recognized in July’s capital expenditures (equipment purchases are net of vat)?
3,175
174,000
2,900
108,800
Bridgeport Inc. reports the following pre-tax incomes (losses) for both financial reporting purposes and tax purposes:
Year
2018
2019
2020
2021
(a)
Accounting
Income
2019
(Loss)
$131.000
2020
2021
97,000
(306,000)
223.000
The tax rates listed were all enacted by the beginning of 2018. Bridgeport reports under the ASPE future/deferred income taxes
method.
2018 Deferred Tax Expense
Tax Rate
25 %
Prepare the journal entries for each of the years 2018 to 2021 to record income tax. Assume the tax loss is first carried back, and
that at the end of 2020, the loss carryforward benefits are judged more likely than not to be realized in the future. (Credit account
titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the
account titles and enter O for the amounts)
de
25 %
30 %
30 %
Prepare the journal entries for each of the years 2018 to 2021 to record income tax Assume the tax loss is first carried back, and
that at…
What is the income tax payable for 2020? (Apply the pre-CREATE law rulings)
Chapter S Solutions
Financial Accounting
Ch. S - Defining a Lessor Which of the following best...Ch. S - Prob. 2MCQCh. S - Prob. 3MCQCh. S - Prob. 4MCQCh. S - Prob. 5MCQCh. S - Prob. 6MCQCh. S - Prob. 1MECh. S - Prob. 2MECh. S - Prob. 3MECh. S - Prob. 4ME
Ch. S - Prob. 1ECh. S - Prob. 2ECh. S - Prob. 3ECh. S - Prob. 4ECh. S - Calculating a Deferred Tax Liability LOS-5 On...Ch. S - Prob. 6ECh. S - Prob. 7ECh. S - Prob. 8ECh. S - Prob. 9ECh. S - Prob. 10ECh. S - Converting Operating Leases to Capital Leases...Ch. S - Converting Operating Leases to Capital Leases...Ch. S - Computing Effective Tax Rates LOS-4 Below is...Ch. S - Prob. 4PCh. S - Prob. 5PCh. S - Prob. 6PCh. S - Analyzing Starbuckss Lease Disclosures The...Ch. S - Analyzing Disneys Income Tax Disclosures The...
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- How much business tax payable for the third quarter return if: i. it only been able to have its VAT registration during the month of September ii. it opted for the 8% optional tax iii. tax overpayments are applied for credit?arrow_forwardAnalyzing Tax ExpenseThe following is an excerpt from Walmart’s Form 10‑K for the fiscal year ended January 31, 2019.A summary of the provision for income taxes is as follows ($ millions): Current: U.S. federal $2,763 U.S. state and local 493 International 1,495 Total current tax provision $4,751 Deferred: U.S. federal $(361) U.S. state and local (16) International (93) Total deferred tax expense (benefit) $(470) Consider the deferred portion of Walmart’s tax provision. Which of the following is plausible?Hint: Consider the tax expense equation.a. Walmart’s deferred tax assets increased during the year.b. Walmart’s deferred tax liabilities decreased during the year.c. Both a and b are plausible.d. Neither a nor b is plausible.arrow_forward1. What is the income tax payable for 2020? (Apply the pre-CREATE law rulings)arrow_forward
- Recording Income Tax Expense (FSET) Procter & Gamble, Inc. reports the following tax information in its 2020 financial report. Year Ended June 30 Current Federal and state Foreign Total Deferred Federal and state Foreign Total 2018 2019 2020 $4,262 $1.280 $1.589 1.154 1.284 1.804 5416 2564 3393 (2029) (302) 40 148 (117) (648) (1.881) (419) (608) Provisions for income taxes $3.535 $2.145 $2.785 a. Record P&G's provision for income taxes for 2020 using the financial statement effects template. b. Explain how the provision for income affects P&G's financial statements. Note: Use negative signs with your answers, when appropriate. ■Note: Select "N/A" as your answer if a part of the accounting equation is not affected. Transaction To record income tax expense b. Asset + Noncash Assets Balance Sheet Contra Assets Liabilities Contributed Capital Earned Capital Contra Equity ° Income Statement Revenue. Expenses Net Income billion. (Note that if the company paid all or some of this amount in…arrow_forwardWhat is the amount of taxes the company paid in 2008?arrow_forwardDo not give image formatarrow_forward
- 13. What is the total deferred tax asset to be presented in the 2021 Statement of Financial Position?14. What is the total income tax expense for the year?15. What is the net income after tax? Please answer in good accounting form. Thank you!arrow_forwardSuppose that a state has increased its sales tax rate every other year since 2008. Assume that the state collected all sales taxes that residents legally owed. The table below summarizes its experience. What were total taxable sales in this state during each year displayed in the table? (Complete the table below.) (See page 131.) Year Sales Tax Rate Sales Tax Collections Total Taxable Sales 2008 0.05 (5 percent) $12,000,000 2010 0.06 (6 percent) $16,000,000 2012 0.07 (7 percent) $23,000,000 2014 0.08 (8 percent) $28,000,000 2016 0.09 (9 percent) $34,000,000 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardXYZ Company reported the following pretax income (loss) and related tax rates during the years 2016-2021. Year Pretax Income (loss) Таx rate 2016 $75,000 30% 2017 150,000 30% 2018 240,000 40% 2019 (540,000) 48% 2020 210,000 40% 2021 300,000 42% a. Prepare the journal entries for the years 2019 and 2020 to record income taxes and the tax effects of the loss. Assume that XYZ elects the carryback provision where possible and it is probable that it will realize benefits of any loss carryforward. b. Prepare the portion of the income statement that presents your answer in part (a) for the year ended 2019.arrow_forward
- Mallock Incorporated reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ in thousands): 2016 2017 2018 $ 140 $ 60 $0 Mallock's federal tax rate decreased from 35% to 21% starting in 2018. Mallock accounts for its 2020 NOL under the CARES Act. Required: 1. Prepare the appropriate journal entry to record Mallock's 2020 income taxes. 2. Show the lower portion of the 2020 income statement that reports income tax expense or benefit. 2019 2020 $0 $ (220) Complete this question by entering your answers in the tabs below. No Required 1 Prepare the appropriate journal entry to record Mallock's 2020 income taxes. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands (i.e., 5,500 should be entered as 5.5). 1 Required 2 Transaction 1 Answer is not complete. Income tax expense Receivable Income tax refund Deferred tax asset Debit 173.8 X 220.0 X Credit…arrow_forwardMallock Incorporated reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ in thousands): 2016 2017 2018 2019 2020 $ 270 $ 60 $ 0 $ 0 $ (350) Mallock's federal tax rate decreased from 35% to 21% starting in 2018. Mallock accounts for its 2020 NOL under the CARES Act. Required: 1. Prepare the appropriate journal entry to record Mallock's 2020 income taxes. 2. Show the lower portion of the 2020 income statement that reports income tax expense or benefit. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate journal entry to record Mallock's 2020 income taxes. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands (i.e., 5,500 should be entered as 5.5). Show lessarrow_forwardA domestic corporation started its operations in year 2008. The following data on income taxes during the years 2012 to 2019 were made available: YEAR RCIT MCIT 2012 25,000 100,000 2013 100,000 150,000 2014 300,000 190,000 2015 250,000 300,000 2016 100,000 50.000 2017 70,000 50.000 2018 5.000 40.000 2019 85,000 60,000 How much is the income tax payable for the year 2018 and 2019, respectively? O 50,000 : 70.000 O 40,000 ; 85,000 O 40,000: 50,000 O None of the choicesarrow_forward
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