During 2020, Coronado Co.'s first year of operations, the company reports pretax financial income at $258,100. Coronado's enacted tax rate is 45% for 2020 and 20% for all later years. Coronado expects to have taxable income in each of the next 5 years. The effects on future tax returns of temporary differences existing at December 31, 2020, are summarized as follows. Future Years 2021 2022 2023 2024 2025 Total Future taxable (deductible) amounts: Installment sales $29,800 $29,800 $29,800 $89,400 Depreciation 5,800 5,800 5,800 $5,800 $5,800 29,000 Unearned rent (45,600) (45,600) (91,200) (a) Complete the schedule below to compute deferred taxes at December 31, 2020. (Negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Temporary Difference Future Taxable (Deductible) Amounts Tax Rate (Asset) Deferred Tax
During 2020, Coronado Co.'s first year of operations, the company reports pretax financial income at $258,100. Coronado's enacted tax rate is 45% for 2020 and 20% for all later years. Coronado expects to have taxable income in each of the next 5 years. The effects on future tax returns of temporary differences existing at December 31, 2020, are summarized as follows. Future Years 2021 2022 2023 2024 2025 Total Future taxable (deductible) amounts: Installment sales $29,800 $29,800 $29,800 $89,400 Depreciation 5,800 5,800 5,800 $5,800 $5,800 29,000 Unearned rent (45,600) (45,600) (91,200) (a) Complete the schedule below to compute deferred taxes at December 31, 2020. (Negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Temporary Difference Future Taxable (Deductible) Amounts Tax Rate (Asset) Deferred Tax
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 9P: Interperiod Tax Allocation Peterson Company has computed its pretax financial income to be 66,000 in...
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