FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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( crane co at the end of 202-itsfirst year of of operations prepared a reconciliation between pertax financial income and taxable income as follows;
Pertax financial income $1170000
Estimated litigation expensense 2950000
Installment sales (2360000)
Taxable income 1760000
( crane co at the end of 202-itsfirst year of of operations prepared a reconciliation between pertax financial income and taxable income as follows;
Pertax financial income $1170000
Estimated litigation expensense 2950000
Installment sales (2360000)
Taxable income 1760000
The estimated litigation expense of $2950000 will be deductible in 2022 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of 1180000 in each of the next two years. The estimated libility for litigation is classified as noncurrent and the installment
The income tax expense is
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- Troy Ltd., at the end of 2023, its first year of operations, prepared a reconciliation between pre- tax accounting income and taxable income as follows: Pre-tax accounting income $300,000 Excess CCA claimed for tax purposes ... (600, 000) Estimated expenses deductible when paid $200,000 Use of the depreciable assets will result in taxable 500,000 Taxable income ... amounts of $200,000 in each of the next three years. The estimated expenses of $500,000 will be deductible in 2026 when settlement is expected to be made. The enacted tax rate is 25% and is to increase to 30%, starting in 2024. Instructions a) Prepare a schedule of the deferred taxable and deductible amounts. b) Prepare the required adjusting entries to record income taxes for 2023arrow_forwardOwearrow_forwardi need the answer quicklyarrow_forward
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