Sheridan Corporation began operations in 2020 and reported pretax financial income of $234,000 for the year. Sheridan’s tax depreciation exceeded its book depreciation by $36,000. Sheridan’s tax rate for 2020 and years thereafter is 30%. In its December 31, 2020, balance sheet, what amount of deferred tax liability should be reported?

The following information is available for Splish Corporation for 2020. 1.   Depreciation reported on the tax return exceeded depreciation reported on the income statement by $116,000. This difference will reverse in equal amounts of $29,000 over the years 2021–2024. 2.   Interest received on municipal bonds was $10,200. 3.   Rent collected in advance on January 1, 2020, totaled $60,000 for a 3-year period. Of this amount, $40,000 was reported as unearned at December 31, 2020, for book purposes. 4.   The tax rates are 40% for 2020 and 35% for 2021 and subsequent years. 5.   Income taxes of $312,000 are due per the tax return for 2020. 6.   No deferred taxes existed at the beginning of 2020.             (a) Compute taxable income for 2020. Taxable income for 2020   $enter Taxable income for 2020 in dollars

At the end of 2021, Schrutte Inc. in its first year of operations, had pretax financial income of $650,000.  The company had extra depreciation taken for tax purposes in the amount of $975,000.  Estimated expenses that were deducted for financial income but not yet paid amounted to $425,000. It is estimated that the expenses will be paid in 2022. The tax rate for all years is 25% In the journal entry at the end of the year that records income tax expense, deferred taxes and income taxes payable, what is the entry to the Income Tax Payable account?   Question 19 options:   a)  credit Income Tax Payable account by $162,500   b)  credit Income Tax Payable account by $300,000.   c)  credit to Income Tax Payable account by $25,000.   d)  credit Income Tax Payable account by $512,500.

Ronin, Inc. had pre-tax accounting income of $2.700,000 and a tax rate of 40% in 2018, its first year of operations. During 2018 the company had the following transactions Received rent from Jean Co. for 2019 of $96,000. Municipal bond income of $120,000. Depreciation for tax purposes in excess of book depreciation was $60,000 Installment sales profit to be taxed in 2019 is $162,000. For 2018, what is the amount of income taxes payable for Ronin, Inc? a) b) At the end of 2018, which of the deferred tax accounts and balances exist at December 31, 2018, and what are the balances?

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.

During 2024, its first year of operations, Baginski Steel Corporation reported a net operating loss of $405,000 for financial reporting and tax purposes. During 2025, Baginski reported income of $225,000 for financial reporting and tax purposes. The enacted tax rate is 25%. Required: Prepare the journal entry to recognize Baginski’s 2025 tax expense or tax benefit. Show the lower portion of the 2025 income statement that reports income tax expense or benefit.

The following information is available for Marigold Corporation for 2020. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $114,000. This difference will reverse in equal amounts of $28,500 over the years 2021-2024. Interest received on municipal bonds was $10,200. Rent collected in advance on January 1, 2020, totaled $61,800 for a 3-year period. Of this amount, $41.200 was reported as unearned at December 31, 2020, for book purposes. 1. 2. 3. 5. 6. The tax rates are 40% for 2020 and 35% for 2021 and subsequent years. Income taxes of $308,000 are due per the tax return for 2020. No deferred taxes existed at the beginning of 2020. ? Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2020 and 2021. Assume taxable income was $1,065,000 in 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry"…

The following information is available for Sandhill Corporation for 2019 (its first year of operations). 1.   Excess of tax depreciation over book depreciation, $40,400. This $40,400 difference will reverse equally over the years 2020–2023. 2.   Deferral, for book purposes, of $19,900 of rent received in advance. The rent will be recognized in 2020. 3.   Pretax financial income, $284,700. 4.   Tax rate for all years, 20%.

At December 31, 2025, Pronghorn Corporation had a deferred tax liability of $353,600, resulting from future taxable amounts of $2,080,000 and an enacted tax rate of 17%. In May 2026, a new income tax act is signed into law that raises the tax rate to 20% for 2026 and future years. Prepare the journal entry for Pronghorn to adjust the deferred tax liability. (List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation eTextbook and Media List of Accounts Save for Later Debit Credit Attempts: 0 of 3 used Submit Answer

At December 31, 2025, Suffolk Corporation had an estimated warranty liability of $105,000 for accounting purposes and $0 for tax purposes. (The warranty costs are not deductible until paid.) The effective tax rate is 20%. Compute the amount Suffolk should report as a deferred tax asset at December 31, 2025.