E 16-7 Temporary difference; future deductible amounts; taxable income given LO16-3 Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid to satisfy warranties on its product sales. For tax purposes, the expense is deducted when the warranty work is completed. At December 31, 2024, Lance has a warranty liability of $2 million and taxable income of $75 million. At December 31, 2023, Lance reported a deferred tax asset of $435,000 related to this difference in reporting warranties; it's only temporary difference. The enacted tax rate is 25% each year. Required: Prepare the appropriate journal entry to record Lance's income tax provision for 2024.

See Attached 5-29

1. On January 1, 20X0 ABC Ltd. owed the government GST of $320. During 20X1, the company was subject to a GST rate of 7% and had sales before considering GST of $320,000. The company can deduct any GST it pays on taxable purchases at 7%. These purchases in 20X1 were $200,000 before considering GST. At the end of 20X0, the company had owed the government GST of $420. What is the net GST amount that the company paid to the government in 20X1? 2. XYZ Ltd., which uses IFRS, operates a coffee shop and began a promotion to increase the sales of its dark roast coffee in December 20X0. Every time that a customer buys a cup of this type of coffee for $4.00 each in December, the customer gets a coupon for 1 free mini cookie that usually sells for $.40 each and costs the company $.20 to produce. Customers cannot use or redeem the coupons until January 20X1. In December 20X1, the company sold 4,800 cups of dark roast coffee. Management expects customers will redeem 75% of the coupons based on many…

4:34 PMJ-Matt, Inc., had pretax accounting income of $291,000 and taxable income of $300,000 in 2021. The only dif-ference between accounting and taxable income is estimated product warranty costs of $9,000 for sales in 2021. Warranty payments are expected to be in equal amounts over the next three years (2022-2024) and will be tax deductible at that time. Recent tax legislation will change the tax rate from the current 25% to 20% in 2023. Deter-mine the amounts necessary to record J-Matt's income taxes for 2021 and prepare the appropriate journal entry.