Blossom Inc's only temporary difference at the beginning and end of 2024 is caused by a $3.03 million deferred gain for tax purposesfor an installment sale of a plant asset, and the related receivable (only one-half of which is classified as a current asset) is due in equalinstallments in 2025 and 2026. The related deferred tax liability at the beginning of the year is $909,000. In the third quarter of 2024,a new tax rate of 20% is enacted into law and is scheduled to become effective for 2026. Taxable income for 2024 is $5,050,000, andtaxable income is expected in all future years.(a)Determine the amount reported as a deferred tax liability at the end of 2024.Deferred tax liability$

A Deferred duty liability is created when a duty obligation is accumulated in one fiscal time but…

Answered: (a) Determine the amount reported as a…

Business

Accounting

(a) Determine the amount reported as a deferred tax liability at the end of 2024. Deferred tax liability $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: In 2023, an individual taxpayer has $863,000 of taxable income that includes $48,000 of 0%/15 % /…

A: The profit obtained from the sale of assets held for longer than a year is referred to as a…

Q: for tax year 2022? a) In 2022, a portion of charitable contributions may be an above the line…

A: The taxpayers pay taxes on the taxable income. The taxable income is used to determine the tax…

Q: In 2019, state income taxes or state and local sales taxes, whichever is larger, may be deducted as…

A: The State and local taxes (SALT) deductions can only be claimed if a taxpayer chooses to itemize…

Q: eductions to determine net income $ 11,840 Federal income tax withheld $ 6,964 Total…

A: Calculate Ann's net income:income = Total income (line 23600) - Deductions $50,650 - $11,840 =…

Q: For investment interest expense in 2022, the deduction by a taxpayer is:

A: The objective of the question is to determine the deduction for investment interest expense by a…

Q: A liability in 2021 is reported for financial reporting purposes but not for tax purposes. When this…

A: As per IAS 12 Income taxes, When carrying amount of liability as per books(financial reporting…

Q: The maximum amount of Work opportunity tax credit in 2021 is a) 24,000 b) 6,000 c) 2,400 d) None…

A: Work opportunity tax credit which is also written as WOTC, is a federal tax credit which is given to…

Q: Eligible taxpayers may qualify to take the full 20% deduction for Qualified Business Income (or 20%…

A: Taxable Income refers to the part of total income received by an individual or corporation which is…

Q: The $ 179 deduction can exceed $1,160,000 in 2023 if the taxpayer had a § 179 amount that exceeded…

A: Section 179 deduction, is a tax code provision in the United States that allows businesses to deduct…

Q: the idual

A: 2023 Married Filing Separately Tax Brackets as per IRS rules 2023 USAIf taxable income is:The tax…

Q: What is the amount of the tax liability for a single person having taxable income of $59,200? Use…

A: Federal income tax As per IRS ,a taxpayer pays tax as a percentage of his/her income in layers…

Q: Whether their taxable income in 2021 is? Eligible taxpayers may be allowed to claim the entire 20%…

A: Taxable Income refers to the part of total income received by an individual or corporation which is…

Q: Matt and Meg Comer are n

A: Gains you make from selling assets you've held for a year or less are called…

Q: Cash basis taxpayers deduct rental expenses that apply to a future tax year in the year the expenses…

A: Cash basis taxpayer means the tax payer who report expense and revenue on cash basis and not on…

Q: x withheld $27,000 $30,000 Est $31,000 Advise Michelle as to her instalment payment options for 2021…

A: The tax is given as,

Q: Hw.67. X corporation, an accrual basis taxpayer wishes to adopt the cash basis method for 2022.…

A: The taxpayer has to select the method of accounting that will be used for filing the return when the…

Q: A taxpayer providing services provided the following: Description Payment of expenses current period…

A: Accrual basis of accounting says that all expenses incurred in that particular period should be…

Q: 27. Mr. Gusion filed his 2019 income tax return and paid the tax shown thereon in the amount of…

A: Income tax: Tax collected by the central government of the country on the income generated by the…

Q: The Bonus Depreciation is set at 100% for the 2021 tax year.

A: The TCJA act has fixed the rate of bonus depreciation till the year 2020 are it will decrease…

Q: A liability in 2021 is reported for financial reporting purposes but not for tax purposes. When this…

A: Deferred tax is the amount of future tax payable due to difference in the taxable income of current…

Q: Compute the annual income tax due if Nicanor will opt for graduated tax rate

A: It has been given in the question that the Nicanor (Taxpayer) has opted to use the graduated tax…

Q: Compute for the Income Tax Due and Payable for taxable year ended December 31, 2020 assuming that…

A: Income tax: Fees charged on the taxable income of the individual and the corporates by the…

Q: Mr. So filed his 2022 income tax return on June 30, 2023. The BIR discovered a deficiency income tax…

A: Income tax return is the return of income which have to filled with in the due date decided by…

Q: A taxpayer engaged in service business provides you with the following: Description 2019 2020…

A: accrual method is a method of accounting in which accounting transactions are recorded according to…

Q: Which one of the following amounts represents the maximum amount that you may deduct for moving…

A: Moving expenses: These are the expenses associated related to your moving your household’s goods and…

Q: Assume for tax year 2022, your adjusted gross income is equal to $110,000. You will file your…

A: Adjusted gross income is after deduction of certain adjustments Taxable income = AGI - standard…

Q: Based on 2022 Tax Table, federal tax payable before tax credit of a person whose net income of…

A: The amount of tax that a person or organization owes to the government in relation to their taxable…

Q: What is the Comers' tax liability for 2022 if they report the following capital gains and losses for…

A: long-term capital gains tax The long-term capital gains tax rates for the 2022 and 2023 tax…

Q: 3. Scottish Corporation reported $1,150,000 of taxable income for the 2020 tax year on its Form…

Q: In 2023, a taxpayer who paid $16,500 of self-employment tax would deduct $ deduction. of the tax as…

A: The self-employment tax is the contribution deducted from the payroll of the employee each month. It…

Q: Determine from the tax table the amount of the income tax for each of the following taxpayers for…

A: Income tax is the tax which is levied by the tax authority on the net income of the firms. The…

Q: Prepare the journal entries to record income tax expense, deferred income taxes and income taxes…

A: Lets understand the basics.Deferred tax is a tax which arise due to temporary difference between the…

Q: 13. Pat generated self-employment income in 2019 of $76,000. The self-employment tax is: a. b. C. d.…

A: Self-employment income in 2019 = $76,000Self-employment tax =?

Q: single taxpayer provided the following information for 2022: Salary $80,000 Interest on local…

A: In 2022, a single taxpayer's financial landscape came under scrutiny for tax purposes. The…

Q: For 2022 the overall federal self-employment tax is ___on the first____of net earnings from…

A: The self-employment tax can be defined as the taxes that are paid by the small business and…

Q: Below are transactions completed by Bijan Sdn Bhd in August 2019. Bijan Sdn Bhd uses the perpetual…

A: Journal entries are the primary step of recording the transaction in the books of account. Journal…

Q: GIVEN: Tax due P1,500 Tax due date April 15,202A Date of filing and payment August 15, 202A…

A: Compromise NIRC SEC. 255. Failure to File Return, Supply Correct and Accurate Information, Pay Tax…

Q: Required: A. Calculate taxable income for 2020.

Q: Determine from the tax table provided the amount of the income tax (before any credits) for each of…

A: Introduction:- A taxpayer is a person or entity (such as a business) that is required to pay tax.…

Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

Blossom Inc's only temporary difference at the beginning and end of 2024 is caused by a $3.03 million deferred gain for tax purposes
for an installment sale of a plant asset, and the related receivable (only one-half of which is classified as a current asset) is due in equal
installments in 2025 and 2026. The related deferred tax liability at the beginning of the year is $909,000. In the third quarter of 2024,
a new tax rate of 20% is enacted into law and is scheduled to become effective for 2026. Taxable income for 2024 is $5,050,000, and
taxable income is expected in all future years.
(a)
Determine the amount reported as a deferred tax liability at the end of 2024.
Deferred tax liability
$

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define Deferred Tax Liability

VIEW

Step 2: Deferred tax liability:

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Taxpayer in 2022 has following amounts: W-2 wages: $125,000 @ 7.65% Sch. C Net income: $125,000 @ 15.30% How much of the correct amount of combined self-employment tax and FICA tax is attributable to the Sch. C Net Income?
What are the 2019 tax rates for FICA Social Security and FICA Medicare? What are the 2019 maximum taxable earnings amounts for each of these taxes?
Sh5
Use the graduated tax table below if applicable: GRADUATED TAX TABLE UNDER TRAIN LAW (January 1, 2018 to December 31, 2022) Over But not over The tax shall be Plus Of excess over 250,000 0 0 - P 250,000 400,000 0 20% P 250,000 400,000 800,000 30,000 25% 400,000 800,000 2,000,000 130,000 30% 800,000 2,000,000 8,000,000 490,000 32% 2,000,000 8,000,000 2,410,000 35% 8,000,000 A taxpayer made available the following financial information: Gross receipts - Php 10,000,000 Cost of service – Php 6,000,000 Expenses: Depreciation expense – Php 200,000 Miscellaneous expenses – Php 10,000 Office supplies – Php 20,000 Rental - Php 240,000 Representation expense – Php 100,000…
Hw.39. Insurance payment includes an advance payment of $12,925 for the next year. Is it tax deductible?
Which of the following recent tax changes is not scheduled to expire after 2025?a. Suspension of personal exemptionsb. General lowering of individual tax ratesc. Restrictions on the deduction of casualty and theft lossesd. Reduction of corporate tax rates to 21 percent
57. What is the adjustment that must be made to taxable income in computing alternative minimum taxable income for 2020, assuming that an individual purchased an office building on january 8 for $400,000?
Please answer correctly
For the tax year 2021-22, what is the deadline to file a self-assessment tax return if submitted manually? 31 January 2022 31 January 2023 31 October 2022 6th April 2023
A taxpayer filed his income tax return on June 30, 2019. The deadline for the return was April 15, 2019. If he has P40,000 net tax due, how much was the surcharge paid? a. P20,000 b. P10,000 c. P8,000 d. P4,800 e. Answer not given
Subject - account Please help me. Thankyou.
In 2022, a taxpayer has self-employment earnings of $201,000. Required: Compute the taxpayer’s self-employment tax liability and the allowable income tax deduction of the self-employment tax paid.