Blue Spruce Corporation has a taxable temporary difference related to net book value versus UCC of $719,000 at December 31, 2023. This difference will reverse as follows: 2024, $50,300; 2025, $314,000; and 2026, $354,700. Enacted tax rates are 25% for 2024 and 2025, and 30% for 2026. Calculate the amount that Blue Spruce should report as a deferred tax asset or liability at December 31, 2023. Deferred tax ✓to be reported $ If the tax rate for 2026 had been 25%, and unexpectedly increased to 30% at the end of 2023, how would the increase in the tax rate for 2026 have affected the deferred tax asset or liability, and the related expense, in 2023? The deferred tax expense and liability would in 2023 by $

Blue Spruce Corporation has a taxable temporary difference related to net book value versus UCC of $719,000 at December 31, 2023. This difference will reverse as follows: 2024, $50,300; 2025, $314,000; and 2026, $354,700. Enacted tax rates are 25% for 2024 and 2025, and 30% for 2026. Calculate the amount that Blue Spruce should report as a deferred tax asset or liability at December 31, 2023. Deferred tax ✓to be reported $ If the tax rate for 2026 had been 25%, and unexpectedly increased to 30% at the end of 2023, how would the increase in the tax rate for 2026 have affected the deferred tax asset or liability, and the related expense, in 2023? The deferred tax expense and liability would in 2023 by $

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

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

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

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 8E: Incomc Taxes Then Company has been in operation for several years. It has both a deductible and a...

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Incomc Taxes Then Company has been in operation for several years. It has both a deductible and a taxable temporary difference. At the beginning of 2019, its deferred tax asset was 690, and its deferred tax liability was 750. The company expects its lutine deductible amount to be deductible in 2020 and its Inline taxable amount to 1 taxable in 2021. In 2018, Congress enacted income tax rates for future years as follows: 2019, 30%; 2020, 34%; and 2021, 35%. At the end of 2019, Then reported income taxes payable of 25,800, an increase in its deferred tax liability of 300, and an ending balance in its deferred tax asset of 860. Thun has prepared the following schedule of items related to its income taxes for 2019. Required: Fill in the blanks in the preceding schedule. Show your calculations.
Ironwood Corporation has ordinary taxable income of $65,000 in 2019, and a short-term capital loss of $15,000. What is the corporation's tax liability for 2019? $7,500 $5,250 $10,500 $13,650 None of the above
Blue Spruce Corporation has a taxable temporary difference related to net book value versus UCC of $719,000 at December 31, 2023. This difference will reverse as follows: 2024, $58,100; 2025, $320,000; and 2026, $340,900. Enacted tax rates are 25% for 2024 and 2025, and 30% for 2026. Calculate the amount that Blue Spruce should report as a deferred tax asset or liability at December 31, 2023. Deferred tax to be reported $ If the tax rate for 2026 had been 25%, and unexpectedly increased to 30% at the end of 2023, how would the increase in the tax rate for 2026 have affected the deferred tax asset or liability, and the related expense, in 2023? The deferred tax expense and liability would in 2023 by $
Carla Vista Corporation reports pretax financial income of $265,900 for 2025. The following items cause taxable income to be different than pretax financial income: 1. Rental income on the income statement is less than rent collected on the tax return by $64,100. Depreciation on the tax return is greater than depreciation on the income statement by $41.200. Interest on an investment in a municipal bond of $8,000 on the income statement. 2. 3. Carla Vista' tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2025. (a) Your Answer Correct Answer (Used) Compute taxable income and income taxes payable for 25. Taxable income Income taxes payable 280,800 84,240 Q
Carla Corporation has a cumulative temporary difference related to depreciation of $556,000 at December 31, 2025. This difference will reverse as follows: 2026, $39.000; 2027, $226.000; and 2028, $291,000. Enacted tax rates are 17% for 2026 and 2027, and 20% for 2028. Compute the amount Carla should report as a deferred tax liability at December 31, 2025. Deferred tax liability at December 31, 2025 $
Nirvana Corporation reports pretax financial income of $260,000 for 2022. The following items cause taxable income to be different than pretax financial income. Rental income on the 2022 tax return is $65,000 greater than on the income statement. Depreciation expense on the tax return is greater than depreciation on the income statement by $40,000. Interest on an investment in a municipal bond of $6,500 is reported on the income statement. Nirvana's tax rate is 25% for all years. There are no deferred taxes at the beginning of 2022. The company expects to realize only 40% of the benefit of any deferred tax assets. The fiscal year ends December 31, 2022. Required: 1. Prepare the journal entries to record i) income tax expense, income taxes payable, and deferred income taxes for 2022, and ii) any valuation allowance needed. 2. Indicate clearly what would be reported on the income statement beginning with income before income taxes for the year ended December 31, 2022 from just…
In 2024, Dark Knight Inc. had taxable income of $125,000. Dark Knight had one permanent difference and one temporary difference. The permanent difference was $15,000 of non-taxable state and municipal bond income. The temporary difference was $30,000 of rent collected in 2024 and included in 2024 taxable income that was deferred until 2025 for book purposes. The tax rate is 20% for all years. After considering income tax expense, what was Dark Knight’s net income? Group of answer choices $106,000 $82,000 $91,000 $115,000
In 2024, Dark Knight Inc. had taxable income of $125,000. Dark Knight had one permanent difference and one temporary difference. The permanent difference was $15,000 of non-taxable state and municipal bond income. The temporary difference was $30,000 of rent collected in 2024 and included in 2024 taxable income that was deferred until 2025 for book purposes. The tax rate is 20% for all years. After considering income tax expense, what was Dark Knight’s net income?
Sheridan Corporation reports pretax financial income of $263,500 for 2025. The following items cause taxable income to be different than pretax financial income: 1. Rental income on the income statement is less than rent collected on the tax return by $61,900. 2. Depreciation on the tax return is greater than depreciation on the income statement by $43,600. 3. Interest on an investment in a municipal bond of $6,500 on the income statement. Sheridan' tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2025. (a) Your answer is correct. Compute taxable income and income taxes payable for 2025. (b) Taxable income $ 275300 Income taxes payable $ 82590 eTextbook and Medla List of Accounts Your answer is correct. Attempts: 1 of 3 used Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2025.(Credit account titles are automatically indented…
Sunland Corporation has one temporary difference at the end of 2025 that will reverse and cause taxable amounts of $57,500 in 2026, $62,100 in 2027, and $66,600 in 2028. Sunland's pretax financial income for 2025 is $314,600, and the tax rate is 40% for all years. There are no deferred taxes at the beginning of 2025. (a) Compute taxable income and income taxes payable for 2025. Taxable income $ Income taxes payable $ +A
As of December 31, 2022, its first year of operations, Batangas Company had taxable temporary differences totaling P3,000,000. Of this total, P1,000,000 relates to current items. Batangas also had deductible temporary differences totaling P1,500,000, P250,000 of which relates to current items. Pretax financial income for the year was P20,000,000. The income tax rate is 35%. How much income tax payable should Batangas Company report on December 31, 2022?
Sandhill Corporation has one temporary difference at the end of 2025 that will reverse and cause taxable amounts of $54,300 in 2026, $59,600 in 2027, and $64,900 in 2028. Sandhill's pretax financial income for 2025 is $327,400, and the tax rate is 30% for all years. There are no deferred taxes at the beginning of 2025. (a) Compute taxable income and income taxes payable for 2025. Taxable income $ Income taxes payable $ +A