In 2018, Ryan Management collected rent revenue for 2019 tenant occupancy. For financial reporting, the rent isrecorded as deferred revenue and then recognized as income in the period tenants occupy rental property, but forincome tax reporting it is taxed when collected. The deferred portion of the rent collected in 2018 was $50 million. Taxable income is $180 million. No temporary differences existed at the beginning of the year, and the taxrate is 40%. Prepare the appropriate journal entry to record income taxes.
In 2018, Ryan Management collected rent revenue for 2019 tenant occupancy. For financial reporting, the rent isrecorded as deferred revenue and then recognized as income in the period tenants occupy rental property, but forincome tax reporting it is taxed when collected. The deferred portion of the rent collected in 2018 was $50 million. Taxable income is $180 million. No temporary differences existed at the beginning of the year, and the taxrate is 40%. Prepare the appropriate journal entry to record income taxes.
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 9DQ
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In 2018, Ryan Management collected rent revenue for 2019 tenant occupancy. For financial reporting, the rent is
recorded as deferred revenue and then recognized as income in the period tenants occupy rental property, but for
income tax reporting it is taxed when collected. The deferred portion of the rent collected in 2018 was $50 million. Taxable income is $180 million. No temporary differences existed at the beginning of the year, and the tax
rate is 40%. Prepare the appropriate
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ISBN:
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Author:
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Publisher:
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