Dix Company reported operating income (loss) before income tax in its first three years of operations as follows:           20X1 $ 100,000   20X2   (200,000 ) 20X3   240,000       Dix had no permanent or temporary differences between book income and taxable income in these years. Assume a 21% tax rate for all years, and assume there is no valuation allowance.   Required: What amount of taxes does Dix pay related to its 20X3 tax return?

Answer the following question: Jason Ltd had the following pre-tax net earnings (loss): Year Taxable Income Tax Rate 20X3 (120000) 25% 20X4 720000 30% 20X5 880000 30% 20X6 (2600000) 30% 20X7 280000 35% 20X8 1000000 35% There have been no temporary differences between pre-tax accounting income and taxable income. In all years, the probability of loss carryforward use was low. For each year, prepare journal entries to record income tax expense (recovery). The entry in 20X7 is: Dr I/T Expense Cr I/T Payable $98000, Dr I/T Payable Cr I/T Expense $98000 Why is there two entries for $98000? Show how number was got as well.

The pre-tax income statements for Moonstone Ltd. for two years (summarized) were as follows: 20X8 20X9 Revenues 266,000 S 330,000 Expenses 181,000 237,000 Pre-tax income s 85,000 $ 93,000 For tax purposes, the following income tax differences existed: a. Revenues on the 20X9 statement of profit and loss include $37,000 rent, which is taxable in 20X8 but was unearned at the end of 20X8 for accounting purposes. b. Expenses on the 20X9 statement of profit and loss include political contributions of $12,500, which are not deductible for income tax purposes. c. Expenses on the 20X8 statement of profit and loss include $20,900 of estimated warranty costs, which are not deductible for income tax purposes until 20X9. Required: 1. What was the accounting carrying value and tax basis for unearned revenue and the warranty liability at the end of 20X8 and 2OX9? 2. Compute (a) income tax payable, (b) deferred income tax, and (c) income tax expense for each period. Assume a tax rate of 30%. (Amounts…

Information relating to Waukegan Company for the current year is as follows:          Income from continuing operations before tax $ 140,000   Income from discontinued operations (pretax)   40,000     What is the amount of the income tax expense that should be allocated to the income from discontinued operations? (Assume the effective tax rate is 25%)   income tax expense