Accounting for Income Taxes Dunkin, Inc. reported revenues of $150,000 and expenses of $70,000 in each of its first three years of operations. For tax purposes, Dunkin reported the same expenses to the IRS in each of the years. Dunkin reported taxable revenues of $120,000 in 2020, $160,000 in 2021, and $170,000 in 2022. What is the effect on the accounts of reporting different amounts of revenue for GAAP versus tax?
Q: The ledger of Sheffield Corp. at the end of the current year shows Accounts Receivable $80,300; Cred...
A: If bad debt expense is 11% of accounts receivable = $80300×11% =$8833
Q: Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted f...
A: Spending Variance- A spending variance is the distinction among the actual sum of a specific expense...
Q: Rank the following inventory methods in terms of their record-keeping cost. For answer choices, the...
A: LIFO stands for the last in first out, it is a method of valuing the inventory which the company is ...
Q: A credit sale of $4,000 is made on April 25, terms 2/10, n/30, on which a return of $250 is granted ...
A: Here terms 2/10, n/30 means 2% discount will be given if payment is made within 10 days. And final ...
Q: Dan make on the sale (e
A: Given: 200 shares of a stock=P140 the stocks at P145.50
Q: Following is the shareholders' equity section of the balance sheet of the Optimum Corporation: Share...
A: A common stock dividend is the dividend paid to common stock owners from the profits of the company....
Q: At the beginning of the year, Morgan Company had total assets of $425,000 and total liabilitiesof $2...
A: The accounting equation depicts the interaction of assets, liabilities, and capital. It serves as th...
Q: If an employee has the chance of receiving cash in lieu of lodging when traveling for legitamate bus...
A: The employee may exclude the value of the meals and lodging from the gross income for purpose of fed...
Q: Is comparing two nce expenses, or option b, which is to purcha and will lower bottling costs by $11,...
A: NPV (Net Present Value) refers to the concept which evaluates the difference between the current cas...
Q: Which of the following statements is true?a. The outstanding number of shares is the maximum number ...
A: Shares outstanding allude to a corporation's stock that is currently occupied by all of its stockhol...
Q: As of December 31, 2015, the books of Ton Partnership showed capital balances of: TP40,000; O, P25,0...
A: Solution Partnership is an agreement between two or more peoples who agree to share business profit ...
Q: All expenses incurred while traveling away from a tax home during a business trip True False
A: Expense allowed as deductible based on nature and relevance. Following is the correct answer.
Q: Hanson Construction has an operating cycle of 9 months. On December 31, 2019, Hanson hasthe followin...
A: Solution Current assets are the assets which can be converted in to cash with in one year. Current...
Q: What is the approximate implicit rate of return on the capital leases? Select one: а. 9.1% b. 11.7% ...
A: Solution:- Given, Initial investment - (CF0) = $25,952 (CF1) = $12,93...
Q: Acme Inc. has the following information available: Actual price paid for material $0.90 Standard pri...
A: ln cost accounting variance is calculated in order to understand the deviations from the actual, it ...
Q: Financial information is presented below: Operating Expenses $ 90,000 Sales Returns and 26,000 Allow...
A: The gross profit margin is calculated as gross profit divided by net sales revenue. Gross profit = S...
Q: GH Environmental provides cost-effective solutions for managing regulatory requirements and environm...
A: Interest Expense=Amount of Note×Interest Rate
Q: Please help me prepare a statement of cash flow for the year ended December 31, 2019
A: Balance sheet, Profit & Loss statement is available for 2019 and 2018 We needs to Prepare Cash F...
Q: 7. Received Php20,000 for the sale of a lot a. Debit cash, Credit Commission Income b. Debit Cash, ...
A:
Q: Time series analysis involves comparing a company’s income statement and balance sheet forthe curren...
A: Time series compares the financial statement of current year company to its previous year Cost of go...
Q: A credit sale of $3,600 is made on July 15, terms 2/10, n/30, on which a return of $200 is granted o...
A: 2/10 net 30 means 2% discount will be there if payment is made with in 10 days and no discount after...
Q: B1. The following information related to ABC LLC Required: (a) Case 1: Calculating dollar amount of ...
A: 1) The markup on cost is the amount added to the cost of the product to arrive at selling price Jean...
Q: Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value ...
A: Using LIFO method, the inventory at last would be sold first and old inventory would be in ending in...
Q: Below is a summary of all transactions of Mason Furniture for the month of August 2021. ...
A: CFS stands for Cash flow statement which is the statement that is prepared by companies in order to ...
Q: Green Shade manufactures insulated windows. The firm’s repair and maintenance (R&M) cost is mixed an...
A: Answer - Part A - USING HIGH LOW METHOD Computation of total fixed cost component of the repair and...
Q: When adjusting entries were made at the end of the year, the accountant for Parker Companydid not ma...
A: Adjusting entries refer to the the journal entries which are passed at the end of accounting period ...
Q: a. Using the least squares method, develop the equation for predicting weekly receiving report costs...
A: Variable cost: Variable cost is one of the component of total cost that variates with the change in ...
Q: MerryYacht International is a worldwide operator, franchisor, and licensor of hotels, residential, a...
A: For case 3 (Credit to the asset account has not been made there) So, entry is incomplete. Entry woul...
Q: On March 12, Medical Waste Services provides services on account to Grace Hospital for $9,500, terms...
A: Formula: Discount amount = Service amount x Discount rate
Q: Part III Record the following T Accounts 1. Recorded revenue from cash patients of $30,000.00 2. Pai...
A: The T-accounts are prepared to post the transactions from the journal book to specific accounts.
Q: Materials used in research and development projects $4,500 Equi
A: In this question, we have to compute the R&D cost that can help in determining the net income
Q: January 3 Purchased equipment for $55000, paying $45000 in cash and signing a 10000, 4-month, 10% no...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: Based on the following information, which of the following is closest to days' sales outstanding? •R...
A: Days' sales outstanding- In accountancy, days’ sales outstanding are a computation used by a corpora...
Q: Problem 4-4A Preparing closing entries, financial statements, and ratios c3 Q A1G P2 The adjusted tr...
A: The financial statements are prepared at year end including income statement, balance sheet, stateme...
Q: Dexter company manufaturing costd were as follows: Direct material and Direct Labor P 100,000 Depr...
A: Lets understand the meaning of prime cost. Prime cost is a cost incurred to manufacture the product ...
Q: Cullumber Markets imports and sells small bear-shaped piñatas. In planning for the coming year, the ...
A: Preparation of contribution margin income statement from above cases are as follows:
Q: Forfeiture of at Par (Ans. Money : App. 30,000; I II & Call 18,000; Share forfeiture 6,200] 30. Sanj...
A: As per our protocol and our guidelines we solution to one question only but as you have asked two qu...
Q: Tweedle Jackets make and sell Tweed Jackets, which never go out of style. Tweedle Jackets uses a pro...
A: The reason why the company is determining the actual cost for the month and the budgeted cost for th...
Q: The Lessor Corporation leases equipment to Lessee Corporation beginning January 1, 2022. The followi...
A: Lessee refers to the person who has taken any assets on lease.
Q: Develop audit procedures for the use of analytical procedures as a substantive procedure in the test...
A: First and foremost, we must comprehend the concept of payroll cost. Payroll cost refers to the wages...
Q: Gallant Inc. recently changed to FIFO from the average cost method. It reported $127,000 of FIFO...
A: Note: Differance in value of inventory upon changing of inventory valuation method, the differance i...
Q: Bank of China has the following items on its balance sheet. Require reserves of $150 billion Excess...
A: The balance of payments for a country or nation is comparable to a balance sheet for a company or bu...
Q: 81 Which of the following is correct? I. Direct origination costs – added to principal II. ...
A: Origination Fees: It is the fees charged by the bank against the borrower for the creation of loan....
Q: John's Tree Service depreciation for the month is $500. The adjusting journal entry is: O A. Depreci...
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as d...
Q: What is the compound amount and compound interest of $36,000 invested at 12% com- pounded semiannual...
A: The formulas- Compounded amount = P × (1 + rm)m×t where; P = Principal r = Nominal interest rate m =...
Q: Baldwin Printing Company uses a job order cost system and applies overhead based on machine hours. ...
A: Given: Direct material costs $1,000 Direct labor costs $1,500 Actual overhead $1,980 Machin...
Q: Augustus Electrical Company has 2 divisions, one in Georgetown and one in Berbice Guyana and inform...
A: Return on investment (ROI) is a relative measure to measure a divisional performance in the organiza...
Q: please do all.
A: A journal entry is a form of accounting entry that is used to report a business transaction in a com...
Q: How do you differ a public corporation from a private corporation? give examples-names, purpose or o...
A: Corporation- A corporation is a legal entity with the identity of a legal person that was formed by ...
Q: The accrued obligation at the beginning of the year was S456,000 and the current service cost for th...
A: Formula: Interest expense = Accrued obligation beginning balance x Interest rate
Step by step
Solved in 2 steps
- Uncertain Tax Position At the end of the current year, Boyd Company claims a 200,000 tax credit on its income tax return. Boyd is uncertain whether the IRS will accept this credit. It studies the IRS regulations and determines that it is more likely than not that the IRS will accept all or some of this tax credit. Based on this research, Boyd estimates the following probability distribution of possible outcomes: Required: For the current year, determine (1) the amount that Boyd will recognize as a current tax benefit and (2) the amount that it will record as the unrecognized tax benefit.Rhodes Corporations financial statements are shown after part f. Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions. a. What is the net operating profit after taxes (NOPAT) for 2020? b. What are the amounts of net operating working capital for both years? c. What are the amounts of total net operating capital for both years? d. What is the free cash flow for 2020? e. What is the ROIC for 2020? f. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.) Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)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) $131.000 2020 2021 97,000 (306,000) 223.000 The tax rates listed were all enacted by the beginning of 2018. Bridgeport reports under the ASPE future/deferred income taxes method. 2018 Deferred Tax Expense Tax Rate 25 % Prepare the journal entries for each of the years 2018 to 2021 to record income tax. Assume the tax loss is first carried back, and that at the end of 2020, the loss carryforward benefits are judged more likely than not to be realized in the future. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) de 25 % 30 % 30 % Prepare the journal entries for each of the years 2018 to 2021 to record income tax Assume the tax loss is first carried back, and that at…
- Mallock Incorporated reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ 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 lessBlossom Inc reports the following pre-tax incomes (losses) for both financial reporting purposes and tax purposes Accounting Income Year (Loss) Tax Rate i 2021 $124,000 2022 91,000 2023 (287,000) 2024 218,000 The tax rates lated were all enacted by the beginning of 2021. Blossom reports under the ASPE future Income tavas method. Prepare the journal entries for each of the years 2021 to 2024 to record Income tax. Assume the texclosa la first carried back and that at the end of 2023, the loss carry forward benefits are judged more likely than not to be realized in the future. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem) Date Account Titles and Explanation (To record benefit from losa canryback) (To record deferred benefit from loss…Mallock Incorporated reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ in thousands): 2016 2017 2018 $ 210 $ 50 $0 2019 2020 $0 $ (290) 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 No 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). 1 X Answer is not complete. Transaction 1 General Journal Deferred tax asset Receivable Income tax refund Required 1 Prev Required 2 > 8…
- Part 1: During 2020 Big Time Consulting collected a $30,000 revenue in advance. It is unearned for GAAP, but included in income for tax. Accounting income before-tax was $250,000. The deferred income tax account has no balance. The $30,000 will be included in the 2021 financial statements. Using a 21% tax rate, give the journal entry to accrue income taxed for 2020. Part 2: For 2021 the accounting income before tax is $300,000 and there are no new book tax differences. Using a 21% tax rate, give the journal entry to accrue income taxed for 2021Mallock Incorporated reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ in thousands): 2016 $ 160 2017 $ 50 2018 $ 0 2019 2020 $ 0 $ (240) 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 Information [The following information applies to the questions displayed below] Arndt, Inc. reported the following for 2021 and 2022 ($ In millions): Revenues Expenses Pretax accounting income (income statement) Taxable income (tax return) Tax rate: 25% 2021 $968 792 $ 176 $ 148 2022 $1,012 816 $196 $ 224 a. Expenses each year Include $54 million from a two-year casualty Insurance policy purchased in 2021 for $108 million. The cost is tax deductible in 2021. b. Expenses include $2 million Insurance premiums each year for life Insurance on key executives. c. Arndt sells one-year subscriptions to a weekly Journal. Subscription sales collected and taxable in 2021 and 2022 were $49 million and $51 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were $41 million ($26 million collected in 2020 but not recognized as revenue until 2021) and $49 million, respectively. Hint View this as two temporary differences-one reversing in 2021; one…
- Bonita Inc. reports the following pretax income (loss) for both book and tax purposes. Pretax Year Income (Loss) Tax Rate 2018 $124,000 20 % 2019 86,000 20 % 2020 (89,000 ) 25 % 2021 126,000 25 % The tax rates listed were all enacted by the beginning of 2018. Prepare the journal entries for years 2018-2021 to record income tax expense (benefit) and income taxes payable, and the tax effects of the loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-half of the benefits of the loss carryforward will not be realized. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)S Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): 2024 $932 788 $ 144 $ 112 Revenues Expenses Pretax accounting income (income statement) Taxable income (tax return) Tax rate: 25% 2025 $ 1,024 844 $ 180 $ 214 a. Expenses each year include $50 million from a two-year casualty insurance policy purchased in 2024 for $100 million. The cost is tax deductible in 2024. b. Expenses include $2 million insurance premiums each year for life insurance on key executives. c. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2024 and 2025 were $51 million and $67 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $45 million ($28 million collected in 2023 but not recognized as revenue until 2024) and $51 million, respectively. Hint. View this as two temporary differences-one reversing in 2024; one originating in 2024. d. 2024 expenses included a $34 million unrealized loss…Give typing answer with explanation and conclusion Inc. reports a taxable and pre-tax accounting loss of $150,000 for 2023. The corporation's taxable and pre-tax accounting income and tax rates for the preceding two years were: 2021 $200,000 20% 2022 200,000 20% The 2023 tax rate is 30%. If Night Owl elects to use the carryback provisions, the amount that should be reported as income tax receivable for 2023 is: a) $50,000. b) $45,000. c) $35,000. d) $30,000.