net operating loss carryovers or carrybacks).$ (90,000)(40,000)70,000170,000(235,000)320,000.201720182019202020212022Required:a. What is B12's 2022 taxable income after the NOL deduction (assume it does not elect to forgo any carrybacks, if applicable)?b. What is its 2022 book-tax difference associated with its NOL? Is it favorable or unfavorable? Is it permanent or temporary?Complete this question by entering your answers in the tabs below.Required BRequired AWhat is B12's 2022 taxable income after the NOL deduction (assume it does not elect to forgo any carrybacks, if applicable)?2022 taxable income after the NOL deduction net operating loss carryovers or carrybacks).201720182019202020212022$(90,000)(40,000)70,000170,000(235,000)320,000Required:a. What is B12's 2022 taxable income after the NOL deduction (assume it does not elect to forgo any carrybacks, if applicable)?b. What is its 2022 book-tax difference associated with its NOL? Is it favorable or unfavorable? Is it permanent or temporary?Complete this question by entering your answers in the tabs below.Year2022Required A Required BWhat is its 2022 book-tax difference associated with its NOL? Is it favorable or unfavorable? Is it permanent or temporary?Favorable orUnfavorableTemporary orPermanentBook-taxDifference< Required ARequired B >

Permanent differences do not change in subsequent periods, leaving a gap between financial…

net operating loss carryovers or carrybacks). $ (90,000) (40,000) 70,000 170,000 2017 2018 2019 2020 2021 2022 (235,000) 320,000 Required: a. What is B12's 2022 taxable income after the NOL deduction (assume it does not elect to forgo any carrybacks, if applicable)? b. What is its 2022 book-tax difference associated with its NOL? Is it favorable or unfavorable? Is it permanent or temporary? Complete this question by entering your answers in the tabs below. Required A Required B What is B12's 2022 taxable income after the NOL deduction (assume it does not elect to forgo any carrybacks, if applicable)? 2022 taxable income after the NOL deduction Required A Required B >

net operating loss carryovers or carrybacks). $ (90,000) (40,000) 70,000 170,000 2017 2018 2019 2020 2021 2022 (235,000) 320,000 Required: a. What is B12's 2022 taxable income after the NOL deduction (assume it does not elect to forgo any carrybacks, if applicable)? b. What is its 2022 book-tax difference associated with its NOL? Is it favorable or unfavorable? Is it permanent or temporary? Complete this question by entering your answers in the tabs below. Required A Required B What is B12's 2022 taxable income after the NOL deduction (assume it does not elect to forgo any carrybacks, if applicable)? 2022 taxable income after the NOL deduction Required A Required B >

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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E19.4 (LO 1, 2) (Three Differences, Compute Taxable Income, Entry for Taxes) Havaci SpA reports pretax financial income of €80,000 for 2022. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by €16,000. 2. Rent collected on the tax return is greater than rent revenue reported on the income statement by €27,000. 3. Fines for pollution appear as an expense of €11,000 on the income statement. Havaci'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 2022. Instructions a. Compute taxable income and income taxes payable for 2022. b. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2022. c. Prepare the income tax expense section of the income statement for 2022, beginning with the line "Income before income…
E19.12 (LO 1) (Deferred Tax Asset) Callaway SA has a deferred tax asset account with a balance of €150,000 at the end of 2021 due to a single cumulative temporary difference of €375,000. At the end of 2022, this same temporary difference has increased to a cumulative amount of €500,000. Taxable income for 2022 is €850,000. The tax rate is 40% for all years.
Sheridan Company has the following two temporary differences between its income tax expense and income taxes payable. 2022 $835,000 $908,000 $960,000 (9,600) 8,400 $825,200 $877,000 $958,800 2020 2021 Pretax financial income Excess depreciation expense on tax return Excess warranty expense in financial income (29,000) 19,200 (41,300) 10,300 Taxable income
Buffalo Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax financial income $811,000 $932,000 $992,000 Excess depreciation expense on tax return (31,500 ) (39,100 ) (9,900 ) Excess warranty expense in financial income 19,900 9,800 8,300 Taxable income $799,400 $902,700 $990,400 The income tax rate for all years is 20%. (a) Your Answer Correct Answer (Used) Assuming there were no temporary differences prior to 2020, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020, 2021, and 2022. (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.) Account Titles and Explanation Debit Credit…
Le Bron Corporation has the following information for 2021 taxable year: Quarter RCIT MCIT CWT First P200,000 P160,000 P40,000 Second 240,000 500,000 60,000 Third 500,000 150,000 80,000 Fourth 300,000 200,000 70,000 Additional information: Excess MCIT from 2020: P60,000 Excess tax credits from 2020: P20,000 1.) How much was the income tax payable for the first quarter? a. 200,000 b. 160,000 c. 120,000 d. 80,000 2.) How much was the income tax payable for the second quarter? a. 660,000 b. 460,000 c. 200,000 d. 160,000 3.) How much was the annual income tax payable? a. 1,260,000 b. 390,000 c. 230,000 d. 930,000
A. The following data were gathered pertaining to the business of person for a taxable quarter in 2018: Vat-registered Taxable sales P1,200,000 Zero-rated sales P600,000 Exempt Sales P450,000 Input tax- taxable P67,500 Input tax- zero rated P15,000 Input tax-exempt P22,500 Input tax that cannot be attributed specifically to any transaction, P30,000. Assuming all applicable input taxes are to be claimed as credits against output ta es, the VAT payable is:
FGH Corporation had the following in 2021: Sales P 3.4M; Cost of sales P 1.2M; Admin expense P 0.3M; Selling expenses P .5M; other taxable income from operations P .1M. What is deductible expense if the company uses OSD?* a. 920,000 b. 1,360,000 c. 880,000 d. 800,000 Using the problem above, what is the income tax payable?* a. 330,000 b. 375,000 c. 575,000 d. 525,000
4. Sunland Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax financial income $842,000 $956,000 $914,000 Excess depreciation expense on tax return (28,800 ) (39,300 ) (9,900 ) Excess warranty expense in financial income 20,400 9,500 7,600 Taxable income $833,600 $926,200 $911,700 The income tax rate for all years is 20%. (a) Assuming there were no temporary differences prior to 2020, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020, 2021, and 2022. (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.) Account Titles and Explanation Debit Credit 2020…
Bramble Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax financial income $844,000 $884,000 $948,000 Excess depreciation expense on tax return (30,800 ) (40,000 ) (9,500 ) Excess warranty expense in financial income 19,300 9,900 8,400 Taxable income $832,500 $853,900 $946,900 The income tax rate for all years is 20%. (a) Assuming there were no temporary differences prior to 2020, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020, 2021, and 2022. (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.) Account Titles and Explanation Debit Credit 2020…
Ivanhoe Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax financial income $811,000 $932,000 $992,000 Excess depreciation expense on tax return (31,500 ) (39,100 ) (9,900 ) Excess warranty expense in financial income 19,900 9,800 8,300 Taxable income $799,400 $902,700 $990,400 The income tax rate for all years is 20%. Prepare the income tax expense section of the income statement for 2022, beginning with the line “Pretax financial income.”
Ivanhoe Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax financial income $811,000 $932,000 $992,000 Excess depreciation expense on tax return (31,500 ) (39,100 ) (9,900 ) Excess warranty expense in financial income 19,900 9,800 8,300 Taxable income $799,400 $902,700 $990,400 The income tax rate for all years is 20%. A) Assuming there were no temporary differences prior to 2020, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020, 2021, and 2022. (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.) b)Indicate how deferred taxes will be reported on the 2022 balance sheet. Ivanhoe’s product warranty is for 12…
Problem 2 E19.1B (LO 1,2) (One Temporary Difference, Future Taxable Amounts, One Rate, No Beginning Deferred Taxes) Allied Corporation has one temporary difference at the end of 2020 that will reverse and cause deductible amounts of $40,000 in 2021, and $70,000 in 2022. Allied's pretax financial income for 2020 is $125,000, and the tax rate is 30% for all years. There are no deferred taxes at the beginning of 2020. Instructions (a) Compute taxable income and income taxes payable for 2020. (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (c) Prepare the income tax expense section of the income statement for 2020, beginning with the line "Income before income taxes."