In 2021, the company accrued wages payable $68,000 and will make the payment in 2022.   Taxable income for 2021 is $600,000, the enacted tax rate is 20% for all years, this is the only difference between pretax financial income and taxable income, and there were no deferred taxes at the beginning of 2021.   What amount of income tax expense should the company report at the end of 2021?

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A:

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Q: Bandung Corporation began 2020 with a $46,000 balance in the ­Deferred Tax Liability account. At the…

A: a. Compute income taxes payable.

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Q: vanhoe Corporation reported $202000 in revenues in its 2021 financial statements, of which $68,000…

A: SOlution: Deferred income tax liability = Future taxable amount * Tax rate of 2022

Q: At the end of 2019, Sentry Company reported a deferred tax liability of $6,120 based on an income…

A: Income tax: Income tax is a tax levied on an individual’s income (taxable income). It is a direct…

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A: In Balance Sheet  Deferred tax asset 2022 = Deferred tax asset 2020 + Deferred tax asset 2021 +…

Q: J-Matt, Inc., had pretax accounting income of $319,000 and taxable income of $352,000 in 2021. The…

A: The temporary difference due to estimated product warranty costs would result in deferred tax asset.…

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

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Q: Sherrod, Inc., reported pretax accounting income of $76 million for 2021. The following information…

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Q: Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid…

A: Income tax payable = Taxable income x tax rate = $75,000,000*25% = $18,750,000 Deferred tax asset =…

Q: Sherrod, Inc., reported pretax accounting income of $100 million for 2021. The following information…

A: Compute the amounts to record income tax as follows: Result:

Q: d of 2019, its first year of operations, Beattie Company reported taxable income of $40,000 and…

A: The exercise of recording financial activity for the first time in the books of accounts is known as…

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A: Particulars Amount Pre Tax Financial Income    42,000 Taxable Income reported    34,200…

Q: Allmond Corporation, organized on January 3, 2021, had pretax accounting income of $16 million and…

A: Part 1:

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Q: Yellow Corporation, a calendar-year taxpayer, made estimated tax payments of $40,000 for 2020…

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Q: In 2021, Heartfin Farms reported a pretax accounting loss of $196 million. During the year, the…

A: Through carryback of Net operating loss (NOL), an entity can adjust prior years taxable income for a…

Q: Bramble Company has the following two temporary differences between its income tax expense and…

A: Taxable income: It is the income calculated as per the tax laws and on which the applicable tax…

Q: Bronson Industries reported a deferred tax liability of $8 million for the year ended December 31,…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: During 2020, Sheffield Co.'s first year of operations, the company reports pretax financial income…

A: Deferred tax asset: A Deferred Tax Asset is an asset on a Company's balance sheet that may be used…

Q: At the beginning of 2021, a company had future deductible amounts of $400,000 and the enacted tax…

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Q: A company made $49,000 in installment sales in 2021 and will receive payment from customers in…

A: Pretax accounting income = Taxable income + Installment sales = $472,000 + $49,000 = $521,000

Q: On 30 June 2020, an employee has been paid a total of $60,000 in salary payments, yet will only…

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A: Calculate deferred tax liability.

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Q: Sherrod, Inc., reported pretax accounting income of $70 million for 2021. The following information…

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A:

Q: On April 1,2019, ABC Company prepaid a P 38,000 premium on an annual insurance policy. The premium…

A: Deductible temporary difference = Carrying amount of assets/liability  - tax base of assets…

Q: The Jets company recorded a deffered tax liability in the amount of $18,750 on December 2020 due to…

A: The deferred tax liability of $18,750 has been computed by multiplying the difference of the book…

Q: Sherrod, Inc., reported pretax accounting income of $82 million for 2021. The following information…

A: SOLUTION 1- EVENT PARTICULARS AMOUNT HINT   PRE TAX ACCOUNTING INCOME (AS GIVEN) 82   B ADD…

Q: At the end of 2019, its first year of operations, Beattie Company reported taxable income of $39,000…

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Q: Bronson Industries reported a deferred tax liability of $8 million for the year ended December 31,…

A:

Q: 1. Compute IRS Company’s taxable income for 2021   2. Prepare IRS Company's journal entry for…

A: Particulars Amount  Pretax financial income  $260,000 Less: Rent paid in advance  $30,000…

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Q: In 2020, NB Incorporated’s federal taxable income was $254,000. Compute the required installment…

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Q: In 2021, Heartfin Farms reported a pretax accounting loss of $196 million. During the year, the…

A: Through carryback of Net operating loss (NOL), an entity can adjust prior years taxable income for a…

Q: Roth Inc. has a deferred tax liability of $68,000 at the beginning of 2021. At the end of 2021, it…

A: Income tax expense:The expenses which are related to the taxable income of the individuals and…

Q: During 2021 a company reported an increase in the deferred tax liability account of $77,990, an…

A: We have the following information: During 2021 a company reported:An increase in the deferred tax…