Catherine Company’s taxable income is $933,000. The only difference between accounting income and taxable income is that depreciation is $4600 for accounting and $8900 for taxes. Pretax accounting income is $928,400 $937,300 $924,100 $928,700
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- Catherine Company’s taxable income is $933,000. The only difference between accounting income and taxable income is that depreciation is $4600 for accounting and $8900 for taxes. Pretax accounting income is
- $928,400
- $937,300
- $924,100
- $928,700
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- Lin Ltd. reported the following: Earnings (loss) Depreciation (assets have a cost of $360,000) CCA Non-deductible expenses Tax rate Taxable income Accounting earnings Permanent difference Accounting income subject to tax Temporary difference 1. What is the amount of the taxable income or loss in each year? (Negative amounts and deductible amounts should be indicated by a minus sign.) Taxable income 20X7 20x7 (first year of operations) $98,000 $45,000 $60,000 $18,000 20x8 30% 2008 $(166,000) $ 45,000 $ 70,000 $18,000 30%Parker Company identifies depreciation as the only difference for future taxable amounts. In Year 1, its depreciation for financial reporting purposes is $9,000 and $10,500 for income tax reporting purposes. Parker has an income tax rate of 35%. Assume that Parker’s taxable income for Year 1 is $150,000. Required: Prepare the journal entry to record Parker’s income tax expense.Livia Company’s pretax income was $72,000. To compute taxable income, the following information is provided: Excess of estimated bad debts over write-offs $26,000 Penalty for late filing of income taxes 21,000 Excess of tax depreciation over accounting depreciation 36,000 Tax rate 20% What is the current portion of income tax? $12,400 $6200 $16,600 $22,600
- Broncos Co. reports pretax financial income of $70,000 for 20x1. The following items cause taxable income to be different than pretax financial income: Depreciation on the tax return is greater than depreciation on the income statement by $16,000. Rent collected on the tax return is greater than rent earned on the income statement by $22,000. Fines for pollution appear as an expense of $11,000 on the income statement. Interest income from City of Denver municipal bonds is $5,000.Broncos’ tax rate is 30% for all years and the company expects to report taxable income in all future years.a) Compute taxable income.b) Prepare the journal entry to record income tax expense, deferred income tax, and income tax payable for 20x1.c) Compute net income for 20x1.Jahlil Corporation has GAAP net income of $4,670,000,000. To compute Jahlil's AFSI, the following items may require adjustment: • Federal income tax expense for book purposes totals $1,074,100,000. • MACRS depreciation is $950,000,000; book depreciation is $564,000,000. • Book net operating loss carryforwards total $330,000,000. Required: a. Compute Jahlil Corporation's AFSI. b. If Jahlil's regular tax liability is $747,500,000, compute the corporation's tentative minimum tax, AMT, and total tax liability. Complete this question by entering your answers in the tabs below. Required A Required B J If Jahlil's regular tax liability is $747,500,000, compute the corporation's tentative minimum tax, AMT, and total tax liability. $544,520,000 Tentative minimum tax AMT Total tax liabilityAcer, Inc. reported a taxable income of P8,000,000 in its Form 1702 for its first year of operations, calendar year 2020. Below are the differences between taxable and financial income:· Excess tax depreciation over accounting depreciation: P500,000· Revenue collected for tax in excess of accounting revenue: P2,000,000· Tax penalties expensed in the income statement: P200,000Income tax rate is 30%. What is the NET DEFERRED TAX EXPENSE for 2020? a. 450,000 benefit b. 450,000 expense c. 510,000 benefit d. 510,000 expense
- Sheridan corporation reports pretax financial income of $73,500 for 2025. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on th eincome statement by $17,600 2. Rent collected on the tax return is greater than rent recognized on the income statement by $19,900 3. Fines for pollution appear as an expense of $10,500 on the income statement Sheridan's 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. Compute taxable income and income taxes payable for 202546. Akoto Corporation reported pretax book income of $2,000,000. Tax depreciation exceeded book depreciation by $500,000. During the year, the company capitalized $250,000 into ending inventory under §263A. Capitalized inventory costs of $150,000 in beginning inventory were deducted as part of cost of goods sold on the tax return. Compute the company's taxes payable or refundable.Earnings (loss) Depreciation (assets have a cost of $390,000) CCA Non-deductible expenses Tax rate Taxable income 1. What is the amount of the taxable income or loss in each year? (Negative amounts and deductible amounts should be indicated by a minus sign.) Accounting earnings Permanent difference: Accounting income subject to tax Temporary difference: Taxable income 20X7 20X7 (first year of operations) $99,000 $50,000 $65,000 $19,000 25% 20X8 20X8 $ (168,000) $ 50,000 $ 75,000 $ 19,000 25%
- Williams Company reported pretax net income from continuing operations of $1,000,000 and taxable income of $600,000. The book-tax difference of $400,000 was due to a $150,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $90,000 due to an increase in the Allowance for Uncollectible Accounts and a $160,000 favorable permanent difference including non-taxable interest income of $60,000 and $100,000 insurance proceeds from key man insurance. Reconcile the Company’s effective tax rate with its normal 21% tax rate.Williams Company reported pretax net income from continuing operations of $1,000,000 and taxable income of $600,000. The book-tax difference of $400,000 was due to a $150,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $90,000 due to an increase in the Allowance for Uncollectible Accounts and a $160,000 favorable permanent difference including non-taxable interest income of $60,000 and $100,000 insurance proceeds from key man insurance. Required: Compute the Williams Company’s current income tax expense. Compute the Company’s deferred income tax expense or benefit. Compute the Company’s effective tax rate. Reconcile the Company’s effective tax rate with its normal 21% tax rate.Sunland Company reports pretax financial income of $72,600 for 2025. The following items cause taxable income to be different than pretax financial income. 2. Depreciation on the tax return is greater than depreciation on the income statement by $17,200. Rent collected on the tax return is greater than rent recognized on the income-statement by $20,300. 3. Fines for pollution appear as an expense of $9,900 on the income statement. Sunland's 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) X Your answer is incorrect. Compute taxable income and income taxes payable for 2025. Taxable income $ 92500 Income taxes payable $ 27750