Cadbury Co. began operations in 2020. The following data relates to Cadbury ’s 2020 operations: Pretax financial income is $1,000,000. The tax rate is 21%. Cadbury  estimates bad debt expense on 2020 accounts receivable was $35,000. Tax does not deduct the bad debts until an accounts receivable is determined to be uncollectible. Machinery was acquired in January for $500,000. Tax depreciation exceeds GAAP depreciation by 100,000. Interest received on tax-exempt FloridaState bonds was $30,000.     Prepare the journal entry to record income tax payable, income tax expense, and any deferred taxes for 2020.

In its first year of operations, HD Corporation reported pretax accounting income of $820 million for the current year. Depreciation reported in the tax return in excess of depreciation in the income statement was $1,020 million. The excess tax will reverse itself evenly over the next three years. The current year's tax rate of 25% will be changed under the current law to 30% next year and 35% for all subsequent years. At the end of the current year, the deferred tax liability related to the excess depreciation for HD Corp, will be: Multiple Choice $340 million $306 million $408 million $357 million

At year-end 2002, Yung.com had notes payable of $1200, accounts payable of $2400, and long-term debt of $6000. Corresponding entries for 2003 are $1600, $2000, and $6000. Asset values are below. During 2003, Yung.com had sales of $5000, cost of goods sold of $ 400, depreciation of $100, and interest paid of $150. The (average) tax rate is 21 %, and all taxes are paid currently. The company has 100 shares of common stock outstanding with a stock price of $15 at the end of 2003. Total dividends paid is $120 in 2003. Current Asset 2002 2003 Cash $800 $500 Marketable securities 400 300 Accounts receivable 900 800 Inventory 1800 2000 Fixed Assets Net Fixed Asset ( Plant&Equipment) $6000 $2000 In 2003, the Market - value - to - Book - value ratio is %

The accounting records of Bonita Inc. show the following data for 2020 (its first year of operations). 1.   Life insurance expense on officers was $9,900. 2.   Equipment was acquired in early January for $288,000. Straight-line depreciation over a 5-year life is used, with no salvage value. For tax purposes, Bonita used a 30% rate to calculate depreciation. 3.   Interest revenue on State of New York bonds totaled $4,300. 4.   Product warranties were estimated to be $51,100 in 2020. Actual repair and labor costs related to the warranties in 2020 were $9,300. The remainder is estimated to be paid evenly in 2021 and 2022. 5.   Gross profit on an accrual basis was $110,000. For tax purposes, $73,200 was recorded on the installment-sales method. 6.   Fines incurred for pollution violations were $4,500. 7.   Pretax financial income was $713,600. The tax rate is 30%. Prepare a schedule starting with pretax financial income in 2020 and ending with taxable income in 2020.…

The following information is available for Hunt Company after its first year of operations: Income before taxes                                                     $250,000 Federal income tax payable                   $104,000 Deferred income tax                               (4,000) Income tax expense                                                       100,000 Net income                                                                  $150,000 Hunt estimates its annual warranty expense as a percentage of sales. The amount charged to warranty expense on its books was £95,000.  Assuming a 40% income tax rate, what amount was actually paid this year for warranty claims?

Concord Company has recorded bad debt expense in the past at a rate of 1.5% of accounts receivable, based on an aging analysis. In 2020, Concord decides to increase its estimate to 2%. If the new rate had been used in prior years, cumulative bad debt expense would have been $436,900 instead of $327,675. In 2020, bad debt expense will be $107,600 instead of $80,700. If Concord's tax rate is 30%, what amount should it report as the cumulative effect of changing the estimated bad debt rate? (Do not leave any answer field blank. Enter O for amounts.) The cumulative effect of changing the estimated bad debt rate

At the end of 2021, Schrutte Inc. in its first year of operations, had pretax financial income of $650,000.  The company had extra depreciation taken for tax purposes in the amount of $975,000.  Estimated expenses that were deducted for financial income but not yet paid amounted to $425,000. It is estimated that the expenses will be paid in 2022. The tax rate for all years is 25% In the journal entry at the end of the year that records income tax expense, deferred taxes and income taxes payable, what is the entry to the Income Tax Payable account?   Question 19 options:   a)  credit Income Tax Payable account by $162,500   b)  credit Income Tax Payable account by $300,000.   c)  credit to Income Tax Payable account by $25,000.   d)  credit Income Tax Payable account by $512,500.

company reported $58,000 of depreciation expense on its income statement in 2015 and $32,000 in 2016. On its tax returns, Morgan deducted $84,000 for depreciation in 2015 and $94,000 in 2013. The 2016 tax return shows a tax obligation (liability) of $38,400 based on a 40% tax rate.Deferred Income Taxes What is the deferred tax liability for 2016?

During 2021, Raines Umbrella Corporation had sales of $760,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $550,000, $90,000, and $95,000, respectively. In addition, the company had an interest expense of $94,000 and a tax rate of 21 percent. (Ignore any tax loss carryforward provisions and assume that interest is fully deductible.) a. What is the company's net income for 2021? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations.) b. What is its operating cash flow? (Do not round intermediate calculations.)

At the beginning of 2021, Pitman Co. had pretax financial income of $1,200,000. Additionally, there was a timing difference of $300,000 due to an accounts receivable that will not be collected until the following year. The tax rate us 30%. A. Calculate the total taxable income for 2021. B. Calculate Income tax expense, income tax payable, and the deferred amount for 2021, and create the journal entry.