In November and December 2020, Waterway Industries, a newly organized magazine publisher, received $78600 for 1,000 three-year subscriptions at $23 per year, starting with the January 2021 issue. Waterway included the entire $78600 in its 2020 income tax return. What amount should Waterway report in its 2020 income statement for subscriptions revenue? $0. $78600. $4366. $26200.

How do you get the answer?   Times-Roman Publishing Company reports the following amounts in its first three years of operation:  ($ in thousands) 2021 2022 2023 Subscription revenue recognized (earned) $ 310   $ 330   $ 290   Subscription payments received in cash   350     310     330       The difference between pretax accounting income and taxable income is due to subscription revenue for one-year magazine subscriptions being reported for tax purposes in the year received, but reported in the income statement in later years when the performance obligation is satisfied. The income tax rate is 25% each year. Times-Roman anticipates profitable operations in the future.  Required:1. What is the balance sheet account that gives rise to a temporary difference in this situation?2. Determine the amount of deferred subscription revenue at the end of each year. (Enter all amounts as positive values.)3. Determine the balance in the related deferred tax account at the end of each…

At the beginning of 2021, a company had future deductible amounts of $400,000 and the enacted tax rate was 27%. In October 2021, a new income tax act is signed into law that lowers the tax rate to 20% for 2022 and future years. To record the change, the company will (enter 1, 2, 3, or 4 that represents the correct answer): Credit Income Tax Expense by $28,000. Debit Income Tax Expense by $28,000. Credit Deferred Tax Liability by $28,000. Debit Deferred Tax Asset by $28,000.

Music Media Ltd. prepares statements quarterly. Port Ai Required: 1. Based on 2019 results, Music's estimated tax liability for 2020 is $303,960. Music will accrue 1/18 of this amount at the end of each month (assume the installments are paid the next day) Prepare the entry on January 31, 2020, to accrue the tax liability and on February 1 to record the payment. View transaction list Journal entry worksheet 1

In 2019, Beta had an annual effective tax rate of 20%. In the 2020 first quarter, the company would pay tax at 25% just for that quarter alone. Beta management estimates that the 2020 full year effective tax rate will be 15%. Based on a first quarter 2020 income before tax of $200,000 what amount of provision for income taxes should be accrued under the integral method.     a. $50,000   b. $40,000   c. $60,000                            d. $0   e. $30,000

BCD Company had sales Revenue of $500,000 for the year 2019. Its cost of goods sold was $240,000, and its operating expenses were $50,000, and administrative expenses $ 25,000. Interest revenue for the year is $5,000 of which $2000 is unearned and interest expense was $12,000. BCD’s income tax rate is 25%. Required:                                                                                                                                                         Prepare a classified multiple-step income statement for the year for BCD Company.

AA Company began operations at the beginning of 2020. The following information pertains to this company: Pretax financial income for 2020 is P100,000 The tax rate enacted for 2020 and future years is 40% Differences between 2020 income statement and the tax return are listed below:  Warranty expense accrued for financial reporting purposes amounts to P7,000. Warranty deductions per tax return amounted to P2,000 Income on construction contracts using the percentage of completion method per books amounts to P92,000. Income on construction contracts for tax purposes amounts to P67,000. Depreciation of PPE for financial reporting purposes amounts to P60,000. Depreciation of these assets amounts to P80,000 for the tax return. A P3,500 fine paid for violation of pollution laws was deducted in computing pretax financial income. Interest revenue earned on an investment in tax-exempt bonds amounts to P1,500.  Taxable income is expected for the next few years. Compute the deferred tax…

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Times-Roman Publishing Company reports the following amounts in its first three years of operation:    ($ in thousands) 2021 2022 2023 Subscription revenue recognized (earned) $ 250   $ 240   $ 230   Subscription payments received in cash   290     220     260       The difference between pretax accounting income and taxable income is due to subscription revenue for one-year magazine subscriptions being reported for tax purposes in the year received, but reported in the income statement in later years when the performance obligation is satisfied. The income tax rate is 25% each year. Times-Roman anticipates profitable operations in the future.  Required:1. What is the balance sheet account that gives rise to a temporary difference in this situation?2. Determine the amount of deferred subscription revenue at the end of each year. (Enter all amounts as positive values.)3. Determine the balance in the related deferred tax account at the end of each year. Is it a deferred tax…

(s) In November and December of 2020, Marle Co. received $380,000 for 25,333 2 year subscriptions to their new magazine, starting in 2021. How much revenue should Marle Co. record in 2020 from these subscriptions? (AC 12) O $0 O $31,667 O $190,000 O $380,000