J-Matt, Inc., had pretax accounting income of $319,000 and taxable income of $352,000 in 2021. The only difference between accounting and taxable income is estimated product warranty costs of $33,000 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.   Determine the amounts necessary to record J-Matt’s income taxes for 2021 and prepare the appropriate journal entry.

In 2020, Mays Industries taxable income was -$77,000. In 2021, its taxable income was $160,000. Its corporate tax rate is 25%. Assume that the company takes full advantage of the Tax Code's carry-forward provision. What is the company's tax liability for 2021?

In 2021, Ryan Management collected rent revenue for 2022 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy rental property. For tax reporting, the rent is taxed when collected in 2021. The deferred portion of the rent collected in 2021 was $194.0 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Suppose the deferred portion of the rent collected was $76 million at the end of 2022. Taxable income is $760 million. Prepare the appropriate journal entry to record income taxes in 2022. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

At the end of 2021, a company has a deferred tax asset with a balance of $480,000.The company has a valuation allowance account related to the deferred tax asset. The valuation account has a balance of $205,000 at the beginning of 2021. If it is more likely than not that all of the deferred tax asset will be realized, then (enter the number that represents the correct answer): income tax expense will be debited by $205,000.   income tax expense will be credited by $205,000. deferred tax asset will be debited by $275,000 the valuation account will be credited by $205,000.

Crane Corporation has one temporary difference at the end of 2020 that will reverse and cause taxable amounts of $56,200 in 2021, $61,000 in 2022, and $66,500 in 2023. Crane’s pretax financial income for 2020 is $285,200, and the tax rate is 30% for all years. There are no deferred taxes at the beginning of 2020. Prepare the income tax expense section of the income statement for 2020, beginning with the line “Income before income taxes.”. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Crane CorporationIncome Statement (Partial)choose the accounting period                                                                        Income before income taxes    $285,200 select an opening section name                                                                            select an income statement item                                                                        $enter a dollar amount…

Shwonson Industries reported a deferred tax asset of $9.75 million for the year ended December 31, 2020, related to a temporary difference of $39 million. The tax rate was 25%. The temporary difference is expected to reverse in 2022, at which time the deferred tax asset will reduce taxable income. There are no other temporary differences in 2020–2022. Assume a new tax law is enacted in 2021 that causes the tax rate to change from 25% to 15% beginning in 2022. (The rate remains 25% for 2021 taxes.) Taxable income in 2021 is $49 million. Required:1. Prepare the appropriate journal entry to record Shwonson’s income tax expense in 2021.2. What effect, will enacting the change in the 2022 tax rate, have on Shwonson’s 2021 net income?

Sherrod, Inc., reported pretax accounting income of $70 million for 2021. The following information relates to differences between pretax accounting income and taxable income: Income from installment sales of properties included in pretax accounting income in 2021 exceeded that reported for tax purposes by $4 million. The installment receivable account at year-end 2021 had a balance of $6 million (representing portions of 2020 and 2021 installment sales), expected to be collected equally in 2022 and 2023. Sherrod was assessed a penalty of $1 million by the Environmental Protection Agency for violation of a federal law in 2021. The fine is to be paid in equal amounts in 2021 and 2022. Sherrod rents its operating facilities but owns one asset acquired in 2020 at a cost of $60 million. Depreciation is reported by the straight-line method, assuming a four-year useful life. On the tax return, deductions for depreciation will be more than straight-line depreciation the first two years but…

Tamarisk Enterprises Ltd., a private company following ASPE earned accounting income before taxes of $1,717,000 for the year ended December 31, 2023. During 2023, Tamarisk paid $250,000 for meals and entertainment expenses. In 2020, Tamarisk's tax accountant made a mistake when preparing the company's income tax return. In 2023, Tamarisk paid $18,000 in penalties related to this error. These penalties were not deductible for tax purposes. Tamarisk owned a warehouse building for which it had no current use, so the company chose to use the building as a rental property. At the beginning of 2023, Tamarisk rented the building to SPK Inc. for two years at $260,000 per year. SPK paid the entire two years rent in advance. Tamarisk used the straight-line depreciation method for accounting purposes and recorded depreciation expense of $404,000. For tax purposes, Tamarisk claimed the maximum capital cost allowance of $629,000. Tamarisk began to sell its products with a two-year warranty against…

In 2020, Garner Grocers had taxable income of -$2,000,000. The corporate tax rate is 25%. Assume that the company takes full advantage of the Tax Code's carry-forward provision. In 2021, Garner has taxable income of $1,000,000. What is the amount of taxes the company paid in 2021? O a. $500,000 Ob. $750,000 O c. $1,500,000 O d. $0 O e. $250,000

Arndt, Inc. reported the following for 2021 and 2022 ($ in millions):    2021   2022 Revenues $ 888     $ 980   Expenses   760       800   Pretax accounting income (income statement) $ 128     $ 180   Taxable income (tax return) $ 116     $ 200   Tax rate: 25%                   Expenses each year include $30 million from a two-year casualty insurance policy purchased in 2021 for $60 million. The cost is tax deductible in 2021. Expenses include $2 million insurance premiums each year for life insurance on key executives. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2021 and 2022 were $33 million and $35 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were $25 million ($10 million collected in 2020 but not recognized as revenue until 2021) and $33 million, respectively. Hint: View this as two temporary differences—one reversing in 2021; one originating in 2021. 2021…