Concord Construction Company changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction contracts during 2021. For tax purposes, the company employs the completed-contract method and will continue this approach in the future. (Hint: Adjust all tax consequences through the Deferred Tax Liability account.) The appropriate information related to this change is as follows.     Pretax Income from:     Percentage-of-Completion   Completed-Contract   Difference 2020   $747,000   $539,000   $208,000 2021   673,000   468,000   205,000 (a) Assuming that the tax rate is 30%, what is the amount of net income that would be reported in 2021?

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A: a.Record income tax expense, deferred income taxes, and income taxes payable for 2020.

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A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

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A: Temporary difference is the difference between pretax financial income and the taxable income that…

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A: Deferred Tax plus and postponed liabilities. Postponed liabilities (DTL) or postponed Tax plus (DTA)…

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A: Solution: income tax payable to be presented in the statement of financial position at year end =…

Q: Teri Hatcher Inc., in its first year of operations, has the following differences between the book…

A: (a) Required journal entry:

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A: Income as per completed contract method = $60, 000 Tax = $60, 000*20% = $12, 000

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A: Deferred Tax asset: Deferred tax asset is an assets that results from overpayment or advance payment…

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A: Income taxes payable = Taxable income * Income tax rate

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A: Journal entry is the first step in process of accounting which is recording the financial data in…

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A: Deferred tax is the income tax payable in the future due to timing differences. It can be a…

Q: (b) Assuming that it is more likely than not that $13,600 of the deferred tax asset will not be…

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A: Introduction: Journal entries should not be used to record routine transactions such as customer…

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A: Solution:-a The following journal entry required for record income tax payable, income tax expense…

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A: Prepare the necessary journal entry in 2017to adjust deferred taxes.

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A: Percentage completion  = Cost incurred to date / Most recent estimate of Total Cost

Q: Larkspur Construction Company changed from the completed-contract to the percentage-of-completion…

A: Journal entry is the process of recording the business transactions in the accounting books for the…

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Q: Shwonson Industries reported a deferred tax asset of $7.75 million for the year ended December 31,…

A: Following is the answer to the given questions

Q: Cullen Construction Company, which began operations in 2020, changed from the completed-contract to…

A: (a)Calculate amount of net income that would be reported in 2021:Net income = Income before income…

Q: The ABC Company has determined that its taxable income for the year 2021 is P3,000,000.   The…

A: Net deferred tax assets on 12/31/2021 = (Taxable temporary differences - Deductible temporary…

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A: Journal entry: This is the first step to record accounts. It is written in the same order in which…

Q: Omskirt Company reported an excess of warranty expense over warranty deductions of P720,000 for the…

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A: Calculate deferred tax liability.

Q: Fore Farms reported a pretax operating loss of $300 million for financial reporting purposes in…

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Q: he income tax rate is 30% for all years. Income tax payable is?

A: Income Tax is a form of indirect tax. It is the tax payable on the amount of income earned during a…

Q: Sheridan Co. at the end of 2020, its first year of operations, prepared a reconciliation between…

A: Income taxes payable = taxable income * tax rate

Q: What is the amount of net income after tax that Vignette Company should report for the year 2021?…

A: The percentage of completed contract method is used to account for long-term construction contracts…

Q: Coronado Corporation has temporary differences at December 31, 2020, that result in the following…

A: Total Deferred Tax Asset = $63,800 + $24,900                                        = $88,700 Total…

Q: Clydesdale Corporation has a cumulative temporary difference related to depreciation of $580,000 at…

A: Deferred tax liability: A deferred tax liability occurs when a business has a certain amount of…

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Q: Teal Corp. has a deferred tax asset account with a balance of $73,600 at the end of 2019 due to a…

A:

Q: Blossom Corporation has a deferred tax asset at December 31, 2022 of $ 250000 due to the recognition…

A: Valuation allowance=DTA-DTA expected to realised

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A: Given that: Method = Percentage of completion method  Tax rate = 40%

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A: Total tax = Taxable amount x income tax rate = 250000 x 30% = 75,000

Q: What is the amount of the deferred tax liability at the end of 2021

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A: Increase in deferred tax liability = Ending deferred tax liability - Beginning deferred tax…

Q: Crane Corporation has one temporary difference at the end of 2020 that will reverse and cause…

A: Solution:- a) Computation of taxable income and income taxes payable for 2020 as follows:- Note:-…

Filing Federal Income Tax Return

A tax is the amount of money paid to the government on the revenue earned by the individual or business organization. It acts as an income for the government and an expense for the individual or business organization. There are different regulations regarding filing an income tax return in other countries.