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%. (b) Indicate how deferred taxes will be reported on the 2022 balance sheet. Sunland’s product warranty is for 12 months. Sunland Company Balance Sheet (Partial) $ Save for Later Attempts: 0 of 1 used Submit Answer

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%. (b) Indicate how deferred taxes will be reported on the 2022 balance sheet. Sunland’s product warranty is for 12 months. Sunland Company Balance Sheet (Partial) $ Save for Later Attempts: 0 of 1 used Submit Answer

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter3: Taxes On The Financial Statements

Section: Chapter Questions

Problem 12P

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(b)

Indicate how deferred taxes will be reported on the 2022 balance sheet. Sunland’s product warranty is for 12 months.

Sunland Company Balance Sheet (Partial)

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Definition Definition Estimated future tax made while preparing accounts. Deferred tax is estimated based on past and present transactions from financial statements. It is not the actual tax that needs to be paid or is refundable from the revenue authority; it is an accounting entry. It is necessary to account for deferred tax due to difference between accounting profits and taxable profits.

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Balance Sheet-

A balance sheet refers to the statement that displays all the obligations owed by a firm, the asset of the owners, and also the wealth owned by a firm or a corporation. It indicates the financial worth of an organization or a firm at the end of the particular financial year.

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4... 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…
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…
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…
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.”
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Exercise 19.8 (Two Temporary Differences, One rate, 3 years). Button Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax Financial Income $840,000 $910,000 $945,000 Excess Depreciation Expense on tax Return (30,000) (40,000) (10,000) Excess Warranty Expense in Financial Income 20,000 10,000 8,000 Taxable Income $830,000 $880,000 $943,000 The income tax rate is 20% for all years. Instructions: 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. b) Indicate how deferred taxes will be reported on the 2022 balance sheet. Button’s product warranty is for 12 months. Deferred tax asset ( $ 0 + $ 0 + $ 0 )..............................$ 0 Deferred tax liability ( $ 0 + $ 0 + $ 0…
IMPORTANT: PLEASE SEE IMAGE, ANSWER PART B CORRECTLY AND ILL LIKE YOUR ANSWER. I attached part a for guidance THANK YOU! Bramble Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax financial income $816,000 $925,000 $930,000 Excess depreciation expense on tax return (30,200 ) (40,900 ) (10,200 ) Excess warranty expense in financial income 20,800 9,700 8,000 Taxable income $806,600 $893,800 $927,800 The income tax rate for all years is 20%.
Assume that the Kelso Company operates in an industry for which NOL carryback is allowed. The Kelso Company had the following operating results: O $22,800. Year 2019 2020 2021 25% What is the income tax refund receivable? O $24,300 O $28,800. Income (loss) 54,000 57,000 (72,000) O 23,550. Tax rate 35% 30% Income tax 18,900first year of operations 17,100 0
Complex Company reported the following information relating to income before tax for accounting purposes: Problem 16-7 (IAA) 2,000,000 3,000,000 4,000,000 5,000,000 2020 2021 2022 2023 Income tax rate 30% In 2020, the entity recognized doubtful accounts of P100 000 Such accounts were considered worthless or in 2021. uncollectible Analysis of the tax and book records disclosed P120.000 in unearned rent income on December 31, 2020 that has been recognized as taxable income in 2020 when the cash was received Also on December 31, 2020, estimated warranty cost of P300,000 had been recognized as expense on the books in 2020 when the product sales were made but is not deductible for tax purposes until paid. The unearned rent income on December 31, 2020 is realized and the actual warranty payments were made as follows: Rent income per book Actual warranty payments 2021 2022 2023 40,000 40,000 40,000 20,000 80,000 200,000 Required: 1. Prepare journal entries for 2020, 2021, 2022 and 2023 w…
carala vista company has the following two temporary difference between its income tax expense and income taxes payable 2025 2026 2027 pretax financial income 854,000. 949,000. 962,000 excess deprecaition expense on tax return (29,800. (41,800) (9900) excess warranty expense in financial income 19800 10500 8100 taxable income 844000 917700 960200 the income tax rate for all years is 20% indicate how deferred taxes will be reported on the 2027 balance sheet carla vistas product warranty is or 12 months

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bartleby, a Learneo, Inc. business

	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