The pretax financial income of x Company differs from its taxable income throughout each of 4 years as follows. Year   Pretax Financial Income   Taxable Income   Tax Rate 2020   $295,000   $180,000   35 % 2021   320,000   217,000   20 % 2022   335,000   264,000   20 % 2023   435,000   592,000   20 % Pretax financial income for each year includes a nondeductible expense of $29,300 (never deductible for tax purposes). The remainder of the difference between pretax financial income and taxable income in each period is due to one depreciation temporary difference. No deferred income taxes existed at the beginning of 2020.   Prepare the Income stmt for 2021 beginning with income before income taxes

Exercise 19.8 (Two Temporary Differences, One rate, 3 years). Button Company has the following two temporary differences between its income tax expense and income taxes payable.     2020 2021 2022 Pretax Financial Income $840,000 $910,000 $945,000 Excess Depreciation Expense on tax Return (30,000) (40,000) (10,000) Excess Warranty Expense in Financial Income 20,000 10,000 8,000 Taxable Income $830,000 $880,000 $943,000   The income tax rate is 20% for all years.   Instructions:   a) Assuming there were no temporary differences prior to 2020, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020,2021, and 2022.   b) Indicate how deferred taxes will be reported on the 2022 balance sheet. Button’s product warranty is for 12 months.       Deferred tax asset ( $ 0 + $ 0 + $ 0 )..............................$ 0       Deferred tax liability ( $ 0 + $ 0 + $ 0…

Taxable income and pretax financial income would be identical for Sweet Co. except for its treatments of gross profit on installment sales and estimated costs of warranties. The following income computations have been prepared. Taxable income 2024 2025 2026 Excess of revenues over expenses (excluding two temporary differences) $166,000 $212,000 $97,900 Installment gross profit collected 8,000 8,000 8,000 Expenditures for warranties Taxable income (5,200) (5,200) (5,200) $168,800 $214,800 $100,700 Pretax financial income 2024 2025 2026 Excess of revenues over expenses (excluding two temporary differences) $166,000 $212,000 $97,900 Installment gross profit recognized 24,000 -0- -0- Estimated cost of warranties (15,600) -0- -0- Income before taxes $174,400 $212,000 $97,900 The tax rates in effect are 2024, 20%; 2025 and 2026, 25%. All tax rates were enacted into law on January 1, 2024. No deferred income taxes existed at the beginning of 2024. Taxable income is expected in all future…

ABC Corporation prepared the following reconciliation for its first year of operations:·      Pretax financial income for 2020- P1,200,000·      Tax exempt interest- P100,000·      Taxable temporary difference - P300,000The temporary difference will reverse evenly over the next two years at an enacted tax rate of 40%. The enacted tax rate for 2020 is 28%. What amount should be reported in its 2020 income statement as the current portion of its provision for income taxes?

the pretax financial income (or loss) figures for metlock company are as follows 2022- 77000; 2023-(49000); 2024-(44000); 2025-125000; 2026-95000. pretax financial income (or loss) and taxable (loss) were the same for all years involved. Assumed a 20% tax rate for all years. Prepare the journal entries for the years 2022 and 2026 to record income tax expense and the effects of the net operating loss carry forwards. all income and losses related to normal operations (in recording the benefits of a loss carry forward assume that no valuation account is deemed necessary Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

Ef 60.

Chocolate Pie Company's taxable income and other data for 2020 are presented below:         Taxable Income  $ 500,000     Interest received on municipal bonds              55,000     Estimated bad debt expense (not written off)              30,000     Cash expenditures for warranties              98,000     Product warranty expense for accounting purposes            152,000     Gross profit on installment sales for 2020            170,000     Gross profit recognized for tax purposes based on 2020 installment sales 150,000                                      Required:       a. Calculate 2020 pretax financial income.       b. For each item, explain why there is a difference if any exists, between how it is treated for tax purposes and pretax financial income.

12)  Ehrlich Corporation prepared the following reconciliation for its first year of operations: Pretax financial income for 2021                        $2,550,000 Excess depreciation expense                                (450,000) Taxable income                                                   $2,100,000                         The temporary difference will reverse evenly over the next two years at an enacted tax rate of 30%. The enacted tax rate for 2021 is 20%. Prepare the journal entry for the income taxes for 2021

Buffalo Company has the following two temporary differences between its income tax expense and income taxes payable.     2020   2021   2022 Pretax financial income   $811,000     $932,000     $992,000   Excess depreciation expense on tax return   (31,500 )   (39,100 )   (9,900 ) Excess warranty expense in financial income   19,900     9,800     8,300   Taxable income   $799,400     $902,700     $990,400   The income tax rate for all years is 20%. (a) Your Answer Correct Answer (Used)     Assuming there were no temporary differences prior to 2020, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020, 2021, and 2022. (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 0 for the amounts.) Account Titles and Explanation Debit Credit…

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…