Intermediate Accoungting ll ch 16 16SkippedLewis Associates. operates in an industry for which NOL carryback is not allowed, and had the following pretax income (loss) over its first three years of operations2022 $1,000,0002023 (1,800,000)2024 1,500,000For each year there were no deferred income taxes. The tax rate was 25% in all years. No valuation account was deemed necessary for the deferred tax asset as of December 31, 2023. What entry to deferred tax assetswould Lewis make in 2024?Multiple ChoiceOOCredit of $375,000Credit of $300,000No debit or credit to deferred tax assetsCredit of $75,000 18SkippedFour independent situations are described below. Each involves future deductible amounts and/or future taxable amounts producedby temporary differences reported first on:(1)(2)(3)(4)Income StatementRevenue$ 22,000$ 15,400$ 15,400Accounting incomeTemporary differences:Income statement first:ExpenseRevenueExpenseTax return first:RevenueExpenseTaxable income$ 22,000$ 22,000Required:For each situation, determine the taxable income assuming pretax accounting income is $100,000.Note: Amounts to be deducted should be indicated by a minus sign.$Tax ReturnRevenue$ 22,000(1)0 $(2)Expense0 $$ 10,400(3)0 $(4)0

Solution 16: Pretax income for 2024= $1,500,000 Amount of brought forward losses that could be set…

Lewis Associates, operates in an industry for which NOL carryback is not allowed, and had the following pretax income (loss) over its first three years of operations 2022 $1,000,000 2023 (1,800,000) 2024 1,500,000 For each year there were no deferred income taxes. The tax rate was 25% in all years. No valuation account was deemed necessary for the deferred tax asset as of December 31, 2023. What entry to deferred tax assets would Lewis make in 2024? Multiple Choice

Lewis Associates, operates in an industry for which NOL carryback is not allowed, and had the following pretax income (loss) over its first three years of operations 2022 $1,000,000 2023 (1,800,000) 2024 1,500,000 For each year there were no deferred income taxes. The tax rate was 25% in all years. No valuation account was deemed necessary for the deferred tax asset as of December 31, 2023. What entry to deferred tax assets would Lewis make in 2024? Multiple Choice

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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