At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $120 million attributable to a temporary book-tax difference of $480 million in a liability for estimated expenses. At the end of 2021, the temporary difference is $368 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2021 is $864 million and the tax rate is 25%.   Required: 1. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that the deferred tax asset will be realized in full. 2. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that only one-fourth of the deferred tax asset ultimately will be realized.

Grace Corporation's pretax fınancial income is $600,000 and taxable income is $550,000 for year 2020. Its beginning deferred tax liability account has a balance of $75,000. Its cumulative temporary differences for year-end 2020 is equal to $300,000 and will reverse and result in taxable amounts as follows: Year Таxable Amount $100,000 $ 75,000 $125,000 The tax rate is 30% for all 2021 2022 2023 years.

*see attached problem REQUIRED: What is the deferred tax balance by the end of 2020?

Carla Corporation has a cumulative temporary difference related to depreciation of $556,000 at December 31, 2025. This difference will reverse as follows: 2026, $39.000; 2027, $226.000; and 2028, $291,000. Enacted tax rates are 17% for 2026 and 2027, and 20% for 2028. Compute the amount Carla should report as a deferred tax liability at December 31, 2025. Deferred tax liability at December 31, 2025 $

Callaway Corp. has a deferred tax asset account with a balance of $150,000 at the end of 2017 due to a single cumulative temporary difference of $375,000. At the end of 2018, this same temporary difference has increased to a cumulative amount of $500,000. Taxable income for 2018 is $850,000. The tax rate is 40% for all years.Instructions(a) Record income tax expense, deferred income taxes, and income taxes payable for 2018, assuming that it is probable that the deferred tax asset will be realized.(b) Assuming that it is probable that $30,000 of the deferred tax asset will not be realized, prepare the journal entry at the end of 2018 to recognize this probability.

At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $80 million attributable to a temporary book-tax difference of $320 million in a liability for estimated expenses. At the end of 2021, the temporary difference is $240 million. Payne has no other temporary differences. Taxable income for 2021 is $576 million and the tax rate is 25%. Payne has a valuation allowance of $32 million for the deferred tax asset at the beginning of 2021. Required: 1. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that the deferred tax asset will be realized in full. 2. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that only one-fourth of the deferred tax asset ultimately will be realized.At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $80 million attributable to a temporary book-tax difference of $320 million in a…

The following information is taken from Igado Company’s 2020 financial records: Pretax accounting income- P1,500,000 Accrued warranty in excess of actual warranty expenditures- P24,500 Excess tax depreciation- P45,000 Taxable income- P1,479,500  The temporary differences were created entirely in 2020. The future deductible amount is expected to reverse in 2021 and the future taxable amount will reverse in equal amounts in the next three years. Tax rates are: 30% in 2020; 32% in 2021; 34% in 2022 and 35% in 2023. How much should Igado Company report as deferred tax asset and deferred tax liability, respectively, at December 31, 2020? A. P7,840 and P14,400 B. P7,350 and P15,150 C. P7,350 and P14,400 D. P7,840 and P15,150

Brown Corp has a deferred tax asset account with balance of $80,000 at the end of 2019 due to a single cumulative temporary difference of $350,000. At the end of 2020, this same temporary difference has increased to cumulative amount of $410,000. Taxable income for 2020 is $800,000. The tax rate is 25% for all years. No valuation account related to the deferred tax asset is in existence at the end of 2019. What one of the following is correct about the journal entry to record Brown's 2020 income tax expense? Group of answer choices Dr. Deferred tax asset $15,000 Dr. Deferred tax liability $25,000 Dr. Income tax expense $200,000 Cr. Tax payable $112,000

Shwonson Industries reported a deferred tax asset of $5.50 million for the year ended December 31, 2020, related to a temporary difference of $22 million. The tax rate was 25%. The temporary difference is expected to reverse in 2022, at which time the deferred tax asset will reduce taxable income. There are no other temporary differences in 2020-2022. Assume a new tax law is enacted in 2021 that causes the tax rate to change from 25% to 15% beginning in 2022. (The rate remains 25% for 2021 taxes.) Taxable income in 2021 is $32 million. Required: 1. Prepare the appropriate journal entry to record Shwonson's income tax expense in 2021. 2. What effect, will enacting the change in the 2022 tax rate, have on Shwonson's 2021 net income? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate journal entry to record Shwonson's income tax expense in 2021. (If no entry is required for a transaction/event, select "No journal entry…

At the beginning of 2020, Wertz Construction Company changed from the completed-contract method to recognizing revenue over time (percentage-of-completion) for financial reporting purposes. The company will continue to use the completed- contract method for tax purposes. For years prior to 2020, pretax income under the two methods was as follows: percentage-of- completion $120,000, and completed-contract $80,000. The tax rate is 20%. Prepare Wertz's 2020 journal entry to record the change in accounting principle.