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Required 1 Calculation General Journal Required 2 Complete the following table given below to record income taxes for 2024. Note: Amounts to be deducted should be entered with a minus sign. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). Description Amount (in millions) Tax Rate = Tax (in millions) Pretax accounting income $ 200.00 Permanent differences Income subject to taxation Temporary Differences 200.00 × = II = × = × = Income taxable in current year $ 200.00 × = EA $ 0.00 Recorded as: The information that follows pertains to Richards Refrigeration, Incorporated: a. At December 31, 2024, temporary differences existed between the financial statement book values and the tax bases of the following: Buildings and equipment (net of accumulated depreciation) Prepaid insurance Liability-loss contingency b. No temporary differences existed at the beginning of 2024. ($ in millions) Book Value Tax Basis $ 120 $ 90 50 25 0 0 Future Taxable (Deductible) Amount $ 30 50 (25) c. Pretax accounting income was $200 million and taxable income was $145 million for the year ended December 31, 2024. The tax rate is 25%. Required: 1. Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2024. 2. What is the 2024 net income?

Required 1 Calculation General Journal Required 2 Complete the following table given below to record income taxes for 2024. Note: Amounts to be deducted should be entered with a minus sign. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). Description Amount (in millions) Tax Rate = Tax (in millions) Pretax accounting income $ 200.00 Permanent differences Income subject to taxation Temporary Differences 200.00 × = II = × = × = Income taxable in current year $ 200.00 × = EA $ 0.00 Recorded as: The information that follows pertains to Richards Refrigeration, Incorporated: a. At December 31, 2024, temporary differences existed between the financial statement book values and the tax bases of the following: Buildings and equipment (net of accumulated depreciation) Prepaid insurance Liability-loss contingency b. No temporary differences existed at the beginning of 2024. ($ in millions) Book Value Tax Basis $ 120 $ 90 50 25 0 0 Future Taxable (Deductible) Amount $ 30 50 (25) c. Pretax accounting income was $200 million and taxable income was $145 million for the year ended December 31, 2024. The tax rate is 25%. Required: 1. Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2024. 2. What is the 2024 net income?

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 6MCQ: Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense...
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Required 1 Calculation General Journal Required 2 Complete the following table given below to record income taxes for 2024. Note: Amounts to be deducted should be entered with a minus sign. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). Description Amount (in millions) Tax Rate = Tax (in millions) Pretax accounting income $ 200.00 Permanent differences Income subject to taxation Temporary Differences 200.00 × = II = × = × = Income taxable in current year $ 200.00 × = EA $ 0.00 Recorded as:
Transcribed Image Text:Required 1 Calculation General Journal Required 2 Complete the following table given below to record income taxes for 2024. Note: Amounts to be deducted should be entered with a minus sign. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). Description Amount (in millions) Tax Rate = Tax (in millions) Pretax accounting income $ 200.00 Permanent differences Income subject to taxation Temporary Differences 200.00 × = II = × = × = Income taxable in current year $ 200.00 × = EA $ 0.00 Recorded as:
The information that follows pertains to Richards Refrigeration, Incorporated: a. At December 31, 2024, temporary differences existed between the financial statement book values and the tax bases of the following: Buildings and equipment (net of accumulated depreciation) Prepaid insurance Liability-loss contingency b. No temporary differences existed at the beginning of 2024. ($ in millions) Book Value Tax Basis $ 120 $ 90 50 25 0 0 Future Taxable (Deductible) Amount $ 30 50 (25) c. Pretax accounting income was $200 million and taxable income was $145 million for the year ended December 31, 2024. The tax rate is 25%. Required: 1. Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2024. 2. What is the 2024 net income?
Transcribed Image Text:The information that follows pertains to Richards Refrigeration, Incorporated: a. At December 31, 2024, temporary differences existed between the financial statement book values and the tax bases of the following: Buildings and equipment (net of accumulated depreciation) Prepaid insurance Liability-loss contingency b. No temporary differences existed at the beginning of 2024. ($ in millions) Book Value Tax Basis $ 120 $ 90 50 25 0 0 Future Taxable (Deductible) Amount $ 30 50 (25) c. Pretax accounting income was $200 million and taxable income was $145 million for the year ended December 31, 2024. The tax rate is 25%. Required: 1. Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2024. 2. What is the 2024 net income?
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